Revenue Strategy Deployment Challenges

The Quintessential Technology Source for Corporate Financial Professionals

Revenue Strategy Deployment Challenges

By CFO Tech Outlook | Wednesday, September 09, 2020

Deploying a successful revenue management strategy will be an issue if an organization does not have a set of specialized skills and knowledge.

Fremont, CA: There are several obstacles that come with implementing a revenue strategy for independent hotels. They should understand that they need to improve each channel and lower costs through direct bookings and offer a better lifetime value for the guests.

Here are four challenges when deploying a revenue strategy- Top 10 Accounting Solution Companies - 2020

Technology Cannot Handle Multiple Online Channels:

Revenue managers face major technology issues as they try to keep up with the competition. From having various technology systems that do not interact properly with each other to not securing the budget to invest in the technology the hotel needs, it has become an obstacle for many independent hotels.

Recording the time spent each day and week on manual tasks defines the pro-active work that can be achieved if the manual admin tasks were not taking over every day. Work-related to pricing and inventory per channel, detailed prediction, and analyzing market segments should be included.

OTA Dominate Online Sales:

Distribution costs, along with OTA booking shares, are increasing at a rapid pace. OTA and metasearch sites affect the organic, distribution, and paid marketing strategy.

A clustered distribution environment can make it challenging for the website to be distinguished. Quality marketing can address this problem, like email marketing and brand campaigns.

Independent hotels that execute a smart distribution strategy will focus on the channels that will be most profitable for them.

Expansive Skill Set Required:

Deploying a successful revenue management strategy will be an issue if an organization does not have a set of specialized skills and knowledge. Training is essential for quality revenue management. It will provide the business with the basics required and help stay updated on the best practices.

Measuring the Cost of Distribution:

The combined traditional and online channels can make it difficult to distinguish the real costs. These invisible paths to buying can misrepresent the views on how much the online and offline activities are worth.

A revenue manager should focus on each channel's cost and discuss it with the sales and marketing team for marketing efforts that lead people to book on the channels. This will give an assessment of which channels cost more and if the bookings can be moved to a lower-cost channel.

See also: Top Claims Processing and Management Consulting/Service Companies

Weekly Brief