When it comes to integrating RM across the business, could individual hotels and smaller groups be faring better? Louvre Hotels Group thinks so

Time and again we hear that the role of the revenue manager is changing. New segments and channels are emerging all the time. Increasingly they have to work closely with other departments such as sales, marketing and operations. They need to manage real-time information and be willing to respond quickly to pricing changes by competitive sets. But how are they getting on? Ritesh Gupta talks to Chinmai Sharma, vice president of revenue management and distribution, Louvre Hotels Group to find out.

EFT: There are lots of RM trends emerging right now. Do you foresee anything particular trends emerging in 2014?

CS: The role of a RM continues to develop with the emergence of new market segments and channels. Today’s revenue managers have to be more focused on cost of distribution channels and analytics as well as e-commerce. These areas are very dynamic and one needs to adapt constantly in order to maximise revenue and market share. In terms of trends, RM teams will have to manage more market segments and channels in the days to come and they will have to work more closely than ever before with their counterparts in sales, marketing and operations.

EFT: How should RM executives be gearing up for these bigger challenges?

CS: I think today’s RM needs to be in tune with the changing market dynamics including understanding the cost-of-sale of channels and return on investment on key online marketing activities. Pricing and distribution dynamics continue to become more complex and the RMs that will stand out from the rest will be those who not only excel at managing price and inventory but also understand sales, marketing and finance really well.

Today’s revenue managers need to be hungry for data, and to understand the financial impact of their decisions. Understanding distribution channel management and e-commerce is increasingly important.

EFT: As an RM professional, how do you see the challenges emerging?

CS: The biggest challenge will be to make sense of a complicated distribution environment while managing the asset ROI and market share expectations of the management/ownership team. The other will be the ability to connect seamlessly with OTA, mobile and meta-search partners; RMs and marketers will need to test and identify new channels of distributing their inventory. The traditional models of distribution including paid search continue to be challenged, so it’s important for RMs to stay on top of these changes and to work with e-commerce and marketing to make sure the online spend is being used efficiently.

EFT: Are marketing, sales and revenue management teams working well together today? 

CS: I think the situation continues to improve at individual hotels or small and mid-sized hotel companies. The departments have understood what each of them can bring to the table in order to maximise revenue. The development of common goals and key performance indicators is also becoming common practice at some companies. Unfortunately, at most large hotel companies these departments still work mostly in silos with separate organisational structures and no common goals.

Next week, Chinmai Sharma, vice president of revenue management and distribution, Louvre Hotels Group share three tips for improving the RM function