CHANNEL SHARE WILL SHIFT WHILE PROFIT WILL SUPERSEDE REVPAR AS REVENUE MANAGEMENT EVOLVES .
TECHNOLOGY : REVENUE MANAGEMENT
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By Nathan Greenhalgh , associate editor
CHANNEL SHARE WILL SHIFT WHILE PROFIT WILL SUPERSEDE REVPAR AS REVENUE MANAGEMENT EVOLVES .
How many people can say what is your most profitable market segment ?” Bonnie Buckhiester , president and CEO of Buckhiester Management USA , Bellingham , Washington , asked during a panel discussion at the HSMAI Revenue Optimization Conference , held in June in Baltimore .
In a room packed with about 100 revenue managers , only one hand was raised . The response highlights the need for revenue managers to further analyze distribution costs , as conference speakers predict the distribution landscape will shift dramatically in upcoming years . It also points to the demand for revenue managers to focus on total revenue and profitability rather than their property ’ s position on the RevPAR index .
“ There is innovation coming in the form of search , social and mobile ,” says Cindy Estis Green , CEO , Kalibri Labs , Potomac , Maryland . “ The new players on the scene don ’ t have legacy systems to support with a customer base that has certain expectations , so it may be easier for them to come on the travel scene with new ideas and put their focus on innovation . The
54 HOTELS September 2012 www . hotelsmag . com