Q: What does Revenue Management mean to you?
I would agree with the saying that Revenue Management is art and science. For me, it’s actually an (ad)venture that allows me to combine my analytical skills with the knowledge acquired over the years and, what’s more, I never get bored, because there are endless ways of exploration. Almost all of today’s hospitality industry is faced with rapid technological evolvement and Revenue Management with the challenge of its complex data processing.
Q: The topic of (big) data in Revenue Management is a hot one in the hotel industry today. It seems that many hotels are still struggling with the concept of data collection and using the right data to improve the hotel’s strategy. What is the situation like at Union Hotels?
As a proverb goes, ”Too many cooks spoil the broth.”, so too much data can create a mess. Big data sounds very exciting and intimidating, but in my opinion, it is a challenge of choosing the correct data to make proper fact-based and data-driven decisions.
Big data sounds very exciting and intimidating, but in my opinion, it is a challenge of choosing the correct data to make proper fact-based and data-driven decisions.
Regarding the collection, processing, and use of correct data, Union Hotels have made a big step forward over the last few years. We have invested a lot of time in training and in building the company’s Revenue Management culture from scratch.
Q: As a hotel revenue manager, what is your management style?
I would say democratic. I firmly believe in teamwork, inclusion, communication but also in clear delegation of responsibilities. Each team (member) in our hotel is only a piece of an organic puzzle which develops and grows.
Q: What is your take on personalized pricing based on guest profiles?
It’s another very interesting topic as far as Revenue Management is concerned. The internet giants have fully embraced it, but we have to take into consideration that they possess the advanced algorithms to track client behaviour. From a hotel standpoint, it represents a great opportunity to increase a hotel’s direct booking conversion rate providing that the hotel has good technical support and a good revenue management strategy.
Q: What key measurements should a hotel look at to enable a successful revenue management strategy?
Indeed, the classic ones RevPAR*1, ADR*2and Occupancy. KPI’s that can be benchmarked in most markets. In more complex Revenue Management systems, the following should not be left out: NRevPAR*3, GOPPAR*4and TRevPAR*5.
* Glossary: *1 RevPAR – Revenue Per Available Room, *2ADR – Average Daily Rate, *3NRevPAR – Net Revenue Per Available Room, *4GOPPAR – Gross Operating Profit Per Available Room, *5TRevPAR – Total Revenue Per Available Room.
Q: What would you say are your most prominent strengths?
My most prominent strength is an operational and sales background. My goal is to practice revenue management on a long-term basis. Many times, the experience from sales and operations helps me with making decisions and implementing the strategies.
I EXPECT THE REVENUE MANAGEMENT WILL TAKE A MORE HOLISTIC APPROACH…
Q: What motivates you to do your best on a job?
My motivation is the Revenue Management itself. It allows me to explore and to be creative. The final and biggest motivation is achieving the goals set by the company.
Q: What was the hardest and most challenging issue you have faced?
Some people go ziplining to get a dose of adrenaline, for me this rush comes from challenges. However, rather than challenges, I see opportunities. Also, if I had to pick one, this would be building a Revenue Management culture in the company. It is a long-term process, and it involves a lot of training, patience, and creativity.
Q: What do you expect the future holds for hotels in terms of revenue management?
The most significant changes in Revenue Management have been caused due to the market conditions and the boost of OTAs. We all know that the technological development is progressing rapidly and not all the hotels will be able to keep up with it. In this respect, the right technology will become even more important. In the end, the next significant change will be brought about by market changes.
I expect the Revenue Management will take a more holistic approach and also tap into other hotel revenues like F&B, meeting rooms and others. Sooner or later Slovenia will be no exception if we want to maximize our revenues. There is still so much untouched data to explore.
From the desk of: Ajda Borak