Top Five Ways to Practice Total Revenue Performance

Top Five Ways to

Practice Total

Revenue Performance

© Copyright Integrated Decisions and Systems, Inc. (IDeaS – A SAS COMPANY)

In a highly competitive hotel environment,

the need to differentiate your property

and drive profitability at every level is more

important than ever. But business objectives

and pricing decisions remain siloed, causing

confusion among teams and missed

revenue opportunities.


Pricing decisions and revenue streams share an

intricate and complex relationship with each other,

and it’s imperative that hoteliers start thinking more

holistically about revenue management strategy.

Sophisticated analytics technology is transforming

disparate data sets from separate functions into

actionable intelligence — making accurate

demand forecasts and strategic pricing decisions

a reality for the entire hotel enterprise.


We call this practice Total Revenue

Performance, and it’s empowering savvy

hoteliers to instantly and systematically

make business decisions across multiple

revenue streams, based on which of those

decisions deliver the greatest overall value

to their hotels.


In this exciting new beginning for the

industry, here are the top five ways to

think differently about your revenue

management strategy, driving profitability

with Total Revenue Performance.


Think Holistically about

Revenue Performance

Revenue management systems do an excellent job of demand

forecasting and price setting, but their focus has been limited

to room rate optimization. Consider additional revenue streams

as they relate to pricing decisions, integrating those streams for

holistic revenue performance across a property.

1


2 Optimize Revenues Vertically AND Horizontally

Pricing decisions made in one department can directly impact

the business performance of another. To achieve Total Revenue

Performance, each revenue stream must be optimized on its

own and connected to its counterparts to reach an ideal mix of

sales and profits.


3 Work Beyond Rooms and Integrate

M&E Revenue

Meeting and Event spaces can account for as much as 60

percent of a hotel’s overall revenue. These function spaces

can influence room rates, but critical profits are left on the

table when these spaces go unsold or undersold. Total

Revenue Performance is the practice of using advanced

analytics to aggregate and synthesize rooms revenue and

function space revenue.


4 Align and Unify Your Mission

Demanding the highest room rates during a peak season

may alienate potential customers who would pay a lower

rate while bringing ancillary revenue to function spaces,

restaurants, golf courses and more. Total Revenue

Performance looks at the big picture to optimize all revenue,

even if that requires a paradigm shift for coveted metrics

like ADR. An entire team must be committed to the mission

of Total Revenue Performance, and systems must be in place

to allow for visibility and control across revenue streams.


5 Analyze Multiple Revenue Streams At Once

Just like a graphic equalizer on a stereo can manipulate certain

parts of sound, a savvy hotelier — with the right tools and the

strategy of Total Revenue Performance — can adjust pricing levels

in certain streams to achieve an overall business objective.


No matter where you are on your revenue

management journey, IDeaS can help you go

further. Visit ideas.com for more resources

around the solutions, services and

technologies hoteliers need to drive better

revenue.

Technology

Top Five Ways to Practice Total Revenue Performance