2013 revenue management focus

A new year and many changes are on the horizon that are impacting heavily your hotels pricing and distribution strategies. It looks like 2013 will be quite an interesting year from a revenue management perspective. We have put a list of some important focus points on paper to get you started.

Here our hotel revenue management tips for 2013 :

Google Hotel Finder

Probably this will become one of the most talked about topics this year. But how does this impact a revenue manager? Well simple it is yet another distribution channel that needs to be monitored.

Google is aggressively rolling out this new price search engine and giving it dominant exposure in their SERPs (search engines result pages). So we can expect quite a few consumers to shift in this direction for their hotel searches.

As a first step, make sure you are listed. This can be achieved by registering your hotel in Google Local Pages : https://plus.google.com/pages/create. Make sure your content is well updated with the correct descriptions and fresh images.

Google Hotel Finder

Unfortunately independent hotels cannot yet integrate with the Google API for Hotel Price Ads, which means that you will have to push your representation company (CRS / GDS) to do so. Otherwise there will only be OTAs listed in Google Hotel Finder, which of course would have a negative impact on your direct sales.

So you will have to push your representation or CRS company to work on this, and get your rates displayed.

Meta-Search Price Manipulation

OTA are aggressively fighting for growth and market share and will do almost anything to get a sale. Most disturbing what we have seen is OTA reducing the taxes and fees to be 1 $ / € / £ cheaper to be listed on top on price comparison websites.

You also have to be careful your package and FIT rates are not published online and are listed with only a small markup on websites like Trivago, HotelsCombined, Kayak or Google Hotel Finder.

All of this completely undermines your pricing strategy and could end up hurting direct sales significantly.

Mobile Pricing Strategies

We have noticed OTAs requesting special rates for mobile devices, including tablets. Strangely enough hotels seem to be willing to dilute their prices on tablets vs. their position on desktops / laptops. Be careful you are not simply undermining your own rate strategy.

Brand Protection

Are you protection your hotel name / brand from advertising hijacking? OTA and other travel websites bid on search engines on your hotel name and divert people looking for your hotel to their intermediary website. This will cost you commission on what should be a direct transaction.

Reputation is Everything

In the era of online reviews and consumer feedback it is crucial for a revenue manager to have a good reputation and review score. It directly impacts your ability to drive ADR. Set-up a combined task force together with the operations team to improve the service level of the hotel, and tackle concerns or suggestions raised by guests. 

Assist in making your hotel outshine the competition!

hotel reputation management

But it is not just about service. You need to get reviews, so don’t forget to ask guests to write something about their stay on your hotel’s TripAdvisor or Google+ profile. It will help you move up in the ranks …

Diversify Distribution

Don’t put all your eggs in one basket, and make sure you are diversifying your distribution. Create a balance between the different OTAs and segments to avoid depending on 1 or 2 large OTA for the majority of your revenue. 

Explore new channels to expand your reach. Don’t look only at OTA that sell BAR, but also explore promotional campaigns to promote packages.

Find channels that can help you spread out your business.

Grow Direct Sales

You need to help your marketing team to secure a relevant budget to grow direct sales. Make sure your website is well optimized and conversion high. Work together with them to improve your look to book ratio. And don’t forget mobile is growing rapidly and you need to be ready to sell on tablet and smart phone devices.

What other marketing tools or initiatives are included in your digital marketing strategy? SEO, SEM, PPC, email marketing, display advertising, mobile marketing, local search linking, social media, retargeting, remarketing, video, reputation management, blog, …

As a revenue manager you need to assist to make sure they have what they need for an all round strategy and have the pricing, distribution and digital marketing strategies seamlessly connect with each other to ensure growth and reduce dependence from 3rd party distributors.

Call Center Sales

How is your reservations team performing? The reservations office is a crucially important point of sales for a hotel, and we have to make sure it generates a good revenue stream. Performance has to be measured with KPI and ongoing training programs are needed to keep conversion levels up.

It is often a neglected department, regarded as merely operational, but it is where everything comes together and the money is made in the end. Make sure it is well managed.


Get your CRS or PMS to connect directly to distributors or channel manager with a 2 way interface. It will reduce errors in rate uploading and data entry of reservations.

Just make sure you don’t simply connect your full inventory without safety triggers. Otherwise a distributor could potentially sell your entire hotel at the same rate. You would certainly have left money on the table if you come back after the weekend and a high demand event day went from 20% to 100% occupancy, without any yielding.

Keep Planning Ahead

This is not new for 2013 of course, but as we are starting a new year it is a chance to get you set-up correctly. Make sure you build a demand calendar for a 12 to 13 month rolling period, and continue do so each month. Add events and market trends to next year’s calendar develop your strategy and load your rates right away.

Don’t procrastinate and leave it for later. You will forget many important details which are now still fresh in your memory.

We encourage revenue managers to step up to the plate in 2013 and get involved in their business beyond analyzing pick-up trends and adjusting rates. They need to develop a more holistic understanding of the hotel(s) they manage and see how they can contribute to generate more demand, improve conversion, and control cost.

The job of a revenue manager is to make more money, you will need to go beyond your traditional role to help your hotel outperform the market.