Oct
31
I like revenue management. It’s a fascinating discipline. At its most extreme it can get really, really complicated. Complicated is good, as long as complicated is getting the job done.
For most of us, true revenue management is something other people do. I know quite a few revenue managers and most of them, by their own admission, aren’t using all the bells and whistles they could be using. Mainly because they’re just too complicated to use and you get to a point where spending 10% more time and effort on more analysis won’t bring in any more business.
Today – not for the first time – I saw revenue management being abused. Someone set out to make things much more complicated than they should have been. The result was a hotel that pointed itself in completely the wrong direction. The hotel was pointing at its selling price, not the customers.
For most of us, true revenue management is something other people do. I know quite a few revenue managers and most of them, by their own admission, aren’t using all the bells and whistles they could be using. Mainly because they’re just too complicated to use and you get to a point where spending 10% more time and effort on more analysis won’t bring in any more business.
Today – not for the first time – I saw revenue management being abused. Someone set out to make things much more complicated than they should have been. The result was a hotel that pointed itself in completely the wrong direction. The hotel was pointing at its selling price, not the customers.
