With changes envisioned by our hotel leaders , the practice of revenue management evolves into the more precise and extensive notion of Total Revenue Management because every inch of space in a hotel is an opportunity to meet the total needs of the customer , thereby capturing a higher share of the customer ’ s wallet in the most profitable way possible at the same time , managing customer experience .
There has always been a lot of talk about how RM professionals should look at Total Revenue Management , one of the main reasons why this has not been taken seriously is the lower profit margins of other revenue streams versus rooms that have the highest profitability . The other challenge is the lack of tools & reports for data mining as hotel chains rely on various technology companies for software support and get tied to rigid tech frameworks which focus on specific priorities .
Technology plays a big role in ensuring the owners are getting a return on their investment , yes investment in technology is expensive but it pays off in the long run . Hotel chains should really look at creating their own software for revenue management , property management system , even digital marketing tools which lets them control the various aspects of the software including updates , new development opportunities .
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