“I feel that the most important thing is to break the barrier between these departments; and there is already a shift in mindset taking place which is good to see! Revenue Management should act as the core element in bringing together the sales and marketing teams so that everyone is aligned on the same goals. It is also essential for everyone to understand the role of each other and how things work. Revenue Management has to remain objective and unbiased, ensuring that whatever strategy is being implemented does not negatively affect any segment.
Revenue Management could be a separate department on the same hierarchy level as Sales and Marketing, but the most important factor here is for everyone to work in collaboration. Very often, when Revenue falls under the Sales and Marketing department, we can see a conflict of interest (sometimes we see people working against each other rather than working together). Many hotels often see the conflicts between Sales and Revenue.
Revenue Managers should take time to explain the strategies to Sales and work together on optimizing this segment. While Revenue provides data-based insights to Sales, the latter contributes with real-time feedback from partners and competitors. All this used together will definitely help to optimize this segment. Sales teams gather a lot of valuable data from the relationship that they build with partners and this can be used to efficiently create and personalize offers that would produce more revenue for the hotel.
When it comes to Marketing teams, there are tons of marketing and social media analytics that are useful in Revenue Management. Again, it is important for Revenue to be fully engaged with the Marketing team. Both should understand how they are connected, inter-related and how they can combine their forces when they work together. This allows them to properly plan campaigns using the marketing data on hand and also analyze past campaigns to understand what works and what does not. No one can function properly without the other. For example, Revenue can come up with amazing packages but if it is not being marketed correctly, it might not convert.
Successful teams are those that are willing to change / adapt and analyze to move forward together. The goal is to work together, as a team and analyze data for all segments to be able to make the proper decisions in terms of pricing, offers, and strategy with the ultimate goal of increasing total revenue.”