Revenue management in outsourcing: why it is a good thing

Practicing revenue management in outsourcing means relying on someone who can relieve the hotelier from problems related to everyday operations and thus allow him to devote himself to improving his own hotel services.

In the era of the modern traveler and a no-frills management approach, why not outsource the hotels’ commercial and pricing management and thus revenue management?

In other words, managing Revenue Management in outsourcing means relying on someone who can relieve the hotelier of the daily burden of data, statistics, flows, analyzes, prices, in addition of managing OTA and booking engines through the Channel Manager. This can be doubly advantageous.

On the one hand, it saves time and energy, which you can devote to a thousand issues related to daily operations, or to think about how to improve reputation and internal service, knowing that there is alredy someone in charge of selling the rooms at best, thanks to a sharper hotel management.

On the other hand, the most important and strategic sector of the hotel (the accommodation department) is entrusted to experts with proven experience.

If I had known!

Too often, during the consulting, I heard phrases like “if I had known”: that’s why I maintain that we must encourage the idea of outsourcing Revenue Management: this may well be the ideal solution for hotels.

The number of stars, the size, the location: none of this is a brake on the success of the Revenue in outsourcing. Knowing the daily workload, we imagine the relief for many receptionists and reception managers, as this role is sometimes held by employees who do not have the necessary experience and skills, or worse, who do not have the motivation. In addition, the partnering of an expert company will inevitably allow employees to progress. Indeed, by interacting, they will enrich their professionalism.

Up selling and cross selling will improve

Hotel services that improve many aspects: the work done in a remote location allows hoteliers to lighten the front staff who can work with greater serenity, devoting more to selling at the desk, up selling and eventually cross selling and above all achieving an optimum management of phone bookings and walk ins.

In my opinion, the outsourcing of revenue management is a great opportunity that has many advantages for the hotelier, in terms of economic outcomes (better turnover, and better profits guaranteed by the new science), in terms of motivation and from an operational point of view.

Good Revenue Management in outsourcing to everybody!

Franco Grasso

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