Doing the same things will get us the same results, but in the midst of such intense competition and a very turbulent environment, the need to be agile, responsive and open to change will separate the winners from the rest of the pack. We take five minutes with our multi-award winning Director of Revenue and Technology – Anael Peu, to talk through his predictions for the industry in 2019.
Our opening scene is pretty clear: High occupancy levels, strong rate growth over the last few years and a common theme of accelerating supply growth. We have all seen such conditions before and the cynics may just say ‘we work in a cyclical industry’; but I am an optimist so I focus on how we make the most of this environment with a pragmatic approach.
Following the return of investor confidence and resumed investment in the sector in 2016, the UK regions have started to feel the pressure of the extra supply which has been compounded with a subdued demand growth. With continued volatility and uncertainty about Brexit outcomes still unknown, the year ahead is set to be a challenging one. How do we as Revenue Managers navigate these rough waters?
1 – Be Agile
The usual business/leisure trends are less noticeable than a few years back with school holidays now varying significantly across the country. August continues to grow from strength to strength in term of occupancy but January is proving difficult to predict. These are only few examples of our changing patterns, and we – Revenue Managers – love patterns and trends. How do we become more agile? Data, data and more data, of course! We must embrace an evidence-based decision making process, less Art and more Science. Lead-time is changing rapidly, same time last year pace comparison are no longer good enough, understanding the ‘the right now’ is where we need to focus. Time to move from planning to predicting and executing!
2 – Be Responsive
Our playing field is changing rapidly, and this is where attention to detail will pay off. In the mature market we are in, marginal gains should be at the centre of all our commercial discussions – as little as they may be; all these 1% improvements soon make a big difference. This means being relentless, always looking out for opportunities to improve and in many cases finding new ways to stay just flat. Time to say goodbye to the complacency bug!
3 – Be Open to change
Making accurate forecasts or attaining top line room’s revenue expectations is no longer good enough. We must strive to optimise profitability as well as analyse and drive all potential ancillary revenue streams. Moving from looking at a single revenue line in isolation to driving total profitable revenue. Time to bring our entrepreneurial side to the party!
As long as we stay in touch with our changing world and customer, Revenue Generation in the hotel sector still has a lot up its sleeves. And remember to try new things and get involved in areas of the business that you have not experienced before. Keep reinventing yourself and what you do; it is a lot more fun this way!
If you are interested in a career within Kew Green Hotel’s revenue department, please get in touch with Natasha by emailing email@example.com