‘Total revenue management is the future’
Revenue managers should study displacement by channel to understand which channels are profitable. They should focus more on optimizing the revenue from a single guest.
BALTIMORE—A third generation of revenue managers will focus more on optimizing the revenue from a single guest rather that the traditional rooms revenue model—an emerging practice called total revenue management—according to a panel of revenue management experts Monday during the HSMAI Revenue Optimization Conference.
For too long revenue managers have focused on optimizing rooms revenue instead of total guest spend, which might include golf, spa or food and beverage, said Bonnie Buckhiester, president of Buckhiester Management.
“We’re very rooms-centric. We don’t spend enough time optimizing (food-and-beverage), retail or golf,” she said.