News for the Hospitality Executive |
Wanted: Revenue Manager with a Rock & Roll Heart. 5 Essential Traits
By Amanda Dennis October 6, 2011 For years,
hotels staffed in an orderly,
traditional
fashion: General Manager, Director of
Sales, Front Office Manager. Almost two
decades ago, the Revenue Manager burst onto the scene and, as
distribution
channels expanded and pricing became more complex and transparent,
there was an
exponential increase in the Revenue Manager’s value.
The early Revenue Managers sat in their dark, back-room cubicles processing data,
analyzing statistics, running a mountain of reports, finally emerging
with the
hotel’s rate strategy….which the General Manager and/or Director of
Sales
either accepted or rejected. Give
Revenue Managers green eyeshades and they became boring Bob Cratchit
clones.
As I look around today, I see too many Bob Cratchit’s masquerading as
Revenue
Managers: hardworking, underpaid clerks. Nice enough, but not lighting
up the
world. I want a
Rock & Roll Revenue Manager! What is
this new species, you ask? It’s a person
who still does all the clinical
data stuff but who is also responsible for developing and engaging
social media
channels, maintaining
key account relationships with the OTA’s, enhancing
the hotel’s website, influencing SEO.
Someone who can successfully multi-task with an iPhone and an iPad
while
reclining on a cloud. Why Rock & Roll? It’s an attitude, a
philosophy, a
way of life. Mick Fleetwood said, “Rock and roll is passion, commitment
and
spirit.” I want that in a Revenue
Manager. Too much to ask? Let’s explore. There are as many definitions of revenue
management as
there are Republican presidential candidates. Technology
advances have made monitoring
the competitive
set, adjusting on-line strategies, serving up inventory and rates, and
evaluating results a whole lot quicker, easier and more accurate. A hotel’s success today depends on a
seamless strategy across all distribution channels including group. Who best to handle this than the Revenue
Manager? We simply need to stop
stereotyping this position. Some hotels
have approached this opportunity with an open mind and have combined
their
Director of Sales and Marketing positions with that of the Revenue
Manager. All
egos aside, others would not think of having the Revenue Manager report
to anyone
except the DOSM. After all, revenue generation is the DOSM’s ultimate
responsibility. Others companies have elevated it to an Executive
Committee
position. What about you? Are you ready for a Rock & Roll Revenue
Manager? How do you know an R&RRM when you see
one? Look for
these 5 essential traits: 1. They think
their job is a lot of fun. You remember fun, don't you?
Sometimes cranky bosses suck the fun right out of the workplace. An
R&RRM is vibrant, enthusiastic and doesn't let a ratty old
pessimist spoil the day. The R&RRM thrives on a fast-paced,
competitive work environment and they're in it to win it. In fact, for
them, it's a lot like a gambling junket to Vegas every single day. The
R&RRM's are playing the odds, and the old, dependable forecasting
rules have changed. To them, fun at work is not a myth but their
reality.
Are you ready for a Rock & Roll Revenue Manager? Only
you can decide. In today’s competitive environment, everyone is looking
for an
edge. I’ll take mine with a little moxie. “It’s only rock and roll but
I like
it.” Sing it, Mick!2. They relish risk-taking. R&RRM's embrace the philosophy of high risk = high reward. In the finance world, pursuing a riskier investment strategy generally results in a much higher return on your investment. With the wholesale rate reductions that occurred in our industry in 2007-2009, the hotel industry has a lot of ground to make up. Even with ADR in some markets recovering at a double-digit pace, rates are still not close to 2007 levels. R&RRM's fully understand what we mean by "value proposition." They recognize that the lowest rate does not always reflect value in the guest's mind (and it doesn't do much for your profit line, either). R&RRM's rarely develop strategy based on price point alone; in fact, they are generally the first in the marketplace to introduce a rate increase. And they are savvy enough to do it by market segment and by demand. Risky…you bet! And if you don't have the stomach for it, then an R&RRM is not for you. 3. They're a little rebellious and like to go against the grain. R&RRM's aren't "yes" people and they aren't here just to take orders. Be prepared for them to challenge the conventional way of thinking. They have done the research, watched the market and they are giving you the most comprehensive revenue enhancement advice you can get…usually with a little twist. This may not always be comfortable for conventional managers. Just remember, the title GM or DOSM doesn't automatically make you Miss Cleo. If you want your Revenue Manager to perform at an optimal level, avoid knee-jerk negatives and ask questions to clarify how the recommendations were developed. Remember, this is what you hired them to do; otherwise, why bother filling the position with a Revenue Manager. Just hire an analyst. 4. They exude confidence and are comfortable and articulate in a team environment. They are not simply clerks, providing research for others to make important business decisions that impact the future of the hotel. R&RRM's are integral partners with the entire revenue-generating team and are valued for their insight and advice. They can be counted on to provide creative, sometimes unusual, solutions for problem-solving though they may not always follow the usual structure when doing so. 5. They embrace creativity and dream big. R&RRM's have elevated visions of success because they know how to seize the moment (see #2). And they are arrogant enough to believe that their hotel should be the market leader. Therefore, they are always searching for the best niche, that subtle point-of-difference…anything that gives them an advantage. And they are intuitive enough to see it before their competitors because, let's face it; most of the hotels in the comp set don't have an R&RRM. A hospitality specialist for over 30 years, Amanda Dennis helps under-performing hotels achieve impressive gains and average hotels soar to extraordinary levels. How does she do it? By working in tandem with your team, incorporating novel positioning, leveraging traditional and modern channels for marketing and adopting inventive pricing strategies. Whether your need is basic or complex, short-term or long-term, Amanda J. Dennis & Associates will design a solution based on your needs, your goals, your market and your location. Think you can’t afford a consultant? Think again. Your potential investment return is as limitless as your curiosity. Find out more by calling (720) 379-3058 or e-mail Amanda directly. Facebook fans click “like” for daily tips, tricks and take-aways. |
Contact: Amanda Dennis [email protected] www.ajdassoc.com 720-379-3058 |
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