To be truly successful in this increasingly competitive industry, the strategic application of data and analytics throughout the revenue management process is paramount.
McLean, VA (PRWEB) November 03, 2016
The Hospitality Sales & Marketing Association International (HSMAI) announces the release of Portrait of Revenue Management Leadership. The report examines the results of a recent survey of hotel management executives on their current work, the challenges facing the discipline, and the evolving skills and duties of senior revenue management professionals.
Hotel management executives from brands and ownership groups and management companies were surveyed. The responses to the survey indicate that in response to a market in which consumers have more control than ever before—largely due to technology—predictive analytics and data-driven strategy are becoming increasingly critical to successful revenue management and the hotel business in general.
The report sheds light on other noteworthy trends indicated in the survey findings:
- The shift from traditional revenue management to predictive analytics is the most significant strategic change taking place over the next three years. To make the most of this change, several accompanying actions should take place:
-- Redefine core industry principles and the expected skills and abilities of senior leadership (on property and in corporate offices).
-- Deploy revenue management throughout the organization and align revenue management with enterprise goals.
-- Advance the thinking in related disciplines and elevate strategic application of data throughout the enterprise.
- Highly educated executives (particularly those trained in decision science and predictive analytics) are becoming more integral to generating hotel business in an increasingly complex global environment. Nearly one-third of respondents (30%) have an advanced degree (MS, MBA, or PhD).
- The required skillset to succeed as a revenue management professional has expanded to include and prioritize advanced strategic and critical thinking abilities. Analytical or critical thinking was deemed the top skill for all respondents (86% cited it as being “very important”) and business acumen and strategic analysis were the next highest ranked skills (70% rated them as “very important”).
- Basing decision making solely on instinct and experience is incomplete and inadvisable. While still valuable, intuition and industry savvy should be part of a more comprehensive and systematic methodology that is focuses more on quantitative analysis and strategy based on information. Nearly two-thirds of the respondents (60%) reported spending the bulk of their professional time each week on planning, forecasting, and strategy.
- Add sales and/or marketing oversight to revenue management professionals’ responsibilities to increase profitability and improve accountability. Of the survey’s respondents, 38% identified leading marketing and/or sales as a preferred new professional responsibility.
HSMAI’s Portrait of Revenue Management Leadership provides a comprehensive look at the current state of the revenue management profession and the opportunities for growth and increased profitability. In addition, the report offers in-depth insights for hotel business executives to succeed in a future that favors—if not requires—data-driven strategy.
“The report’s findings are a striking reminder—if not a wake-up call—to professionals in the hotel business: To be truly successful in this increasingly competitive industry, the strategic application of data and analytics throughout the revenue management process is paramount,” said Robert A. Gilbert, CHME, CHBA, president & CEO of HSMAI.
The research and resulting report were made possible through the sponsorship of the 2016 Chief Revenue Officer Roundtables by Booking.com, Ideas – a SAS company, NOR1, Rainmaker, STR, and Tambourine.
Portrait of Revenue Management Leadership can be downloaded from the HSMAI website.
The Hospitality Sales and Marketing Association International (HSMAI) is committed to growing business for hotels and their partners, and is the industry’s leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals & their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as HSMAI ROCET, Adrian Awards, and Revenue Optimization Conference. HSMAI is an individual membership organization comprising more than 7,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at http://www.hsmai.org, http://www.facebook.com/hsmai, http://www.twitter.com/hsmai and http://www.youtube.com/hsmai1.