Revenue Jargon vs Profit

📰 In This Issue

✔️ Revenue Managers and their Jargon.
✔️ Marriott & CitizenM, congratulations.
✔️ Guest Incidentals, what’s that?
✔️ GuestChat - stay calm, AI has got this.
✔️ Get control of those KPI’s.

🌟 Spotlight: Revenue Managers and Their Jargon.

🔍 I read a post by Thibault Catala on LinkedIn, and I’m pretty sure I understood it, but I had to do a double-take to make sure. I won’t try to explain it here, I would only disappoint my math teachers.

💡 It got me thinking about another conversation I had with a hotel GM. We came to the same conclusion over three coffees, with none of the math involved, and for different reasons. Hotel efficiency was the focus of our conversation.

Most revenue managers I know talk in their language; they remind me of digital marketers, it’s almost like only “THEY” are allowed to understand what they are talking about, which defeats the purpose of any hotel operation. To make a profit! Revenue should assist sales and reservations to make more money. They should work with Ops to reduce waste and build efficiency, which produces more profit.💰💰💰

🚀 Enter technology. You can take your pick from the litter: Roompricegenie, Atomize, Duetto, Ideas, Lighthouse, Juyo Analytics, Cloudbeds has Pie, the list goes on.

My recommendation would be to start with clear, concise reporting and analytics. Understand what’s happening in your hotel, without the Jargon. There are numerous options, DIY options such as PowerBI, not ideal, but cheap, to Lighthouse and Juyo, which are your top candidates.

Once everyone is on the same page, collective decisions will always have higher returns on profit. The management team now knows where the ship is going and is full steam ahead.

You would have noticed that the quick rise of RMS add-ons, widgets, smart revenue tools, etc, has declined. They were never meant to succeed. Higher room rates on their own are not the answer. Collective revenue management from each department is what lifts profits.

📢 Industry Insights: Tourism & Tech News

📰 Marriott and CitizenM are tying the knot. 💍💒🔔
📊 $ 355 million buys you the IP and rights to a lifestyle brand of hotels, running lean on a technology platform built to optimise teams, sell highly condensed rooms and great rates.
🔗 Full article here

The value sits with CitizenM’s customer base, the efficiency with which they manage their business, and the IP they have put into building an innovation powerhouse. Large groups, legacy players will pay good money for that.

😂 Meme of the Week

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Enter GuestChat, an innovative smart chatbot with a personality. Guests get immediate answers, with a personal touch and follow-up options. More wins and fewer worries about who has the WhatsApp channel this weekend.

📌 Final Thoughts & What’s Coming Next

✨ Revenue is a complex beast, global economics are a mystery, but the Rand will always be an attractive travel destination. There is money on the table.

📩 If you enjoyed this read, reply and let me know, you could get a free coffee on us. If it’s terrible, also tell me. You will definitely get a coffee on us.