There are a variety of obstacles to overcome when implementing a revenue strategy, ranging from technology to price to plain communication. Hotels should concentrate on maximizing the effectiveness of each channel and increasing direct bookings.
Fremont, CA: Due to the pandemic's massive impact, hotels are currently encountering issues. Hotels must remember why they are optimizing each channel and how direct reservations save money and give each guest a higher lifetime value. Revenue managers who are attempting to develop robust revenue strategies confront a number of problems.
• Developing ideal skills
The revenue management position necessitates a specific set of skills and knowledge. Putting together and implementing a good strategy will be challenging if you do not have that broad skill set. Training, upskilling, and recharging their knowledge will offer them the essentials they need and keep them up to date on the newest best practices, whether they are new or veteran employees.
• Communication within departments
When it comes to implementing an intelligent strategy, communication is typically a key roadblock. General managers or members of the sales and marketing team may have different revenue targets than the company, or the firm may not have discussed their goals and difficulties together. Companies must make an effort to reach out in order to break down any potential obstacles to open communication and give themselves the chance to streamline goals for the benefit of the company.
• OTAs dominating online sales
OTAs have a 40 percent share of the worldwide travel market on average. A congested distribution landscape, along with severe competition across domestic markets as hotels reopen, makes it much harder for a website to stand out. Fortunately, effective marketing can assist companies in overcoming this obstacle.
• Agility over pricing and strategies
Rules, regulations, processes, and associated costs are all strictly established in branded chain hotels. Independents have more freedom to experiment and innovate since they are more flexible. An independent hotel may truly set itself apart in terms of customer service and property. They can immediately respond to visitor requests, providing a personalized experience that earns the hotel increased client loyalty. Independent hotels are able to experiment with their branding. It might be freeing not to have a precise brand standard.