The exciting world of total revenue generation

By Marci Jacobs

In hospitality, we are confronted with constantly changing operational and competitive landscapes.

This environment includes continued real estate development with new brands and robust growth in asset classes as varied as economy extended-stay and boutique luxury, all of which brings new competition for room nights and rate setting. Not only must we understand and track consumer behaviors, but these future guests have a huge array of platforms where they can learn about our properties, make reservations and critique us. Driving these trends along in good measure are the technological advances that impact every facet of hospitality, including sales, marketing and revenue generation.

We must also not forget the day-to-day needs, as well as strategic goals, of our owners and investors.

In response to these rapid changes, we are increasingly embracing a holistic approach whereby e-commerce, revenue management and operations are united to achieve total revenue generation. From boots on the ground to digitalmarketing, disciplines are “merging” for total effort. This embrace of a “no silos” approach is meant to help answer that pressing question: How do we maintain market share despite all of the changes in the industry?

A new kind of team

Many veterans in our industry may feel like they have heard this mantra before. I’ve come up through the ranks. I know how to run a front desk. I’ve been a director of sales. I cross-trained in revenue management, switched back and forth. I even held both positions at the same time; partially, sharing dual responsibility with someone else.

I understand. However, what we are experiencing today is something different. Remember, when mom or dad said, “play well with others.” While there does need to be an over-arching revenue leader—someone who sets the strategic tone—total revenue generation requires a collaborative approach—with shared responsibilities and shared rewards. We have to break some old habits, while embracing a new form of cooperative task accomplishment. This means soliciting input across job descriptions to make the best possible shared decisions. In some ways, we are pulling down the curtain as happened to the Wizard of Oz, letting others share in our experience, knowledge and hard-won insights. It takes trust in our colleagues.

Channeling channels

Moreover, these efforts increasingly include data-driven decision-making to determine our market spend meant to drive guests to our doors; guests, we know about your spending habits and where to find you! The possibilities seem almost endless and can change in the wink of an eye. Expedia, Booking.com, Google ads, Facebook ads, meeting sites like those for weddings or special events are all in play. We are also helped in much of this new style of marketing by the systems invested in by our brand partners.

As a result, we have yet another metric by which we monitor progress—return on ad spend—to help us analyze, or calculate return on investment, as well as when we plot our next year’s budgets. The question remains, how do we translate clicks into profit.

In some ways, the new approaches actually make our work simpler. Less pounding the shoe leather. Less cold calling. Joint decisions. On the other hand, today’s sales, marketing and revenue generation professionals must be able to quickly and decisively navigate complex computerized systems. This is an area where our formal onboarding and ongoing continuing education are important as technology will continue to evolve at a rapid pace.

The more things change

Regardless, if we aspire to all steer in the same direction, each person in our organization must be a salesperson, no matter what it says on the name badge. As technology became ever more important to our industry, we often heard the refrain “high tech, high touch.” Now is the time to prove that in how we embrace AI and the modern technologies of today, as we investigate ways to maximize revenues, and improve profitability.

However, in doing so, we must be sure to illuminate the traditions of hospitality that do distinguish us from all other industries. We are still about working as a team, treating guests and vendors, respectively, as true partners, earning for us the best possible reputation—and rewards.

Marci Jacobs is VP, sales and revenue generation at McNeill Hotel Company.

This is a contributed piece to Hotel Business, authored by an industry professional. The thoughts expressed are the perspective of the bylined individual.