After 1 year of hard work it is time to take stock and see what kind of progress we have made with implementing revenue management at 2 youth hostels in Paris. Looking at the current trend we are growing revenues by at least 10% year over year, we can definitely say this is a successful turn-around. How did we do it?
In response to our blog articles on hotel revenue management, we get asked one question very often in particular. 'How do I start a career in revenue management?'. It is posed not only by students nearing the end of their educational program, but also by mid-level managers who have worked in the hospitality industry for a couple of years already. Becoming a hotel revenue manager is their dream job!
It is a question I often hear when explaining what we do at Xotels. People seem surprised hotels are willing to hand over a vital part of their strategies to a 3rd party. Such a sensitive and key part to the success of your business as revenue management should not be left to an ‘outside’ company many hoteliers respond.
We have just recently taken on 2 youth hostels in Paris and are working on developing revenue management strategies for them. Just as in hotels yield management techniques can be implemented in youth hostels to maximize revenue and profit. Another exciting journey we are taking with Xotels.
It would be interesting to compile a list with the tools that a revenue manager should have his disposal. Let’s call it the ultimate Hotel Revenue Management Toolkit. We have done some digging through our excel reports, yield tools, systems and technology and came up with quite an extensive list of tools and gadgets a revenue managers requires to do his job well.
Investing in hotel real-estate requires a lot of funds. We are talking about tens or hundreds of millions of dollars/euros. You need to ensure a proper ROI is generated with such a strategic investment. Moreover hotels are a multi-million dollar operation. In any other industry we would be looking for a well experienced CEO to manage such a company. Who would you trust to manage your hotel investment?