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Hotel owners use revenue management consultants for a multitude of reasons. In some cases, it is to acquire experience and knowledge because their property is failing to reach its goals, but it may also be to save money, with a remote revenue management consultant often cheaper than employing an on-property revenue manager on a full-time basis. A great revenue management consultant will also be able to apply their expertise to a specific project, provide temporary cover or conduct training.
In this article, I explain what a revenue management consultant is, what they do, the benefits they bring and how you can find a great hotel consultant that will help you realise the true revenue potential of your property.
What Is A Revenue Management Consultant?
A revenue management consultant is someone who provides expert advice in relation to revenue management to an organisation or individual, often combining years of expertise acquired serving a range of properties, such as hotels, with a data-driven approach to maximising revenues in the hospitality industry.
Most great revenue management consultants become integrated within the management structure of the property, assume day-to-day responsibilities for the function, operate as part of your team and provide support. However, unlike an employed, on-property revenue manager, they provide a fee-based, consultancy type approach to revenue management, largely operate remotely and visit the property on a predetermined schedule.
What Does A Revenue Management Consultant Do?
A great revenue management consultant operating in the hospitality industry will offer a range of bespoke or predefined services to meet the needs and budget of their client, these often include:
Hotel Revenue Consultancy/Project-Based Revenue Management:
Project-based consulting services, whereby, based upon your requirements, they will apply their expert knowledge to complete a specific project(s). This could be, for example, completion of a competitive benchmarking exercise, improving existing forecasting procedures or implementing a new revenue management system.
Outsourced Revenue Management:
A complete outsourced revenue management service usually entails a revenue management consultant assuming responsibility for devising and delivering a revenue strategy that will enable a property to realise its true revenue potential. This typically includes competitor and local market analysis, segmenting customers, forecasting demand, creating a pricing methodology, controlling inventory, managing and selecting distribution channels and performance analysis.
Revenue Management Audit:
A revenue management audit is often the first step taken by or with a revenue management consultant. The purpose of this is to assess current and historical performance, identify new revenue opportunities, patterns and risks, so that you can either create, or optimise, a revenue strategy. This usually includes an assessment of your competition, inventory, prices, processes, technology and reports.
Revenue Management Training:
A range of in-person and online training courses, covering key aspects and the latest developments in revenue management. These sessions are created to benefit on-property staff, revenue managers and property owners, so that they can develop their knowledge, increase their understanding and to help foster a revenue culture at a property.
5 Benefits Of A Great Revenue Management Consultant
There are a range of tangible benefits that a great revenue management consultant can bring to your hotel, team and overall commercial strategy. The main reasons to outsource your revenue strategy needs to an accomplished hotel consultant are to:
Acquire Expertise
The primary motivation for a hotelier in enlisting the services of a revenue management consultant will, most likely, be to acquire the very best talent, irrespective of geographic restrictions and consequently benefit from their specialist expertise. A great revenue management consultant will possess considerable knowledge and experience of revenue management, strategies, tactics, techniques and technologies – all of which can be applied and used at their client’s properties to maximise revenue and profit.
Drive Efficiency
Ongoing staff shortages prevalent in the hospitality industry since Covid-19 have increased workloads for loyal workers such as the Front Office or Rooms Division Manager who may have taken on additional responsibilities, such as revenue management – this will likely reduce their capacity to perform all duties effectively. Hiring a consultant to focus on your revenue strategy, who is paid a fee solely for the work that they do, will allow all staff to focus their attention and efforts back towards providing guests with memorable experiences.
Save Money
As an employer, hiring a full-time, on-property revenue manager in the UK will likely involve, at the very least, a requirement to pay a competitive salary, employers’ national insurance and pension contributions. To acquire an experienced and knowledgeable revenue manager on this basis will also likely require the provision of benefits, bonuses and equipment, to name just a few! Despite the significant return on investment, these costs can be prohibitive for many properties. Hiring a revenue management consultant can be a far less expensive option – you only need pay for the resources and support you require, which should only amount to a fraction of the cost of employing a full-time revenue manager in wages alone!
Dependable Support
Staff turnover amongst Revenue Managers tends to be quite high, as they often remain open to opportunities to progress their careers, which can prove hugely disruptive for properties, given the consequential loss of knowledge in the interim period that inevitably follows, until such a time as a new revenue manager has been recruited. A similar challenge often ensues in regards to annual, maternity/paternity or sick leave, particularly if this role cannot be fulfilled temporarily by another employee. Hiring a revenue management consultant should ensure the availability of continuous, dependable and reliable support, the provision of which will be their responsibility.
Flexibility
Hiring a revenue management consultant should also ensure a more flexible approach. At Guest Forward, we serve clients by tailoring our services to their needs and creating a bespoke solution that will support the pursuit of the revenue goals of their property. For some, this may simply mean conducting a revenue management audit and creating a revenue strategy that they can implement themselves on-property, whilst for others, we can also provide a complete, outsourced revenue management service.
How To Find A Great Revenue Management Consultant For Your Hotel
Finding a great revenue management consultant for your hotel can take time and you should be diligent in your search to find the right consultant for your hotel so you reap all the benefits outlined earlier. Below are five simple steps to help you find your perfect match:
Define Your Brief & Budget:
Before you begin to search for a revenue management consultant for your property, it would be sensible first to define your brief and then to consider what budget you have available to invest in revenue management – what is it, specifically, that you are hoping that they can help you to achieve and what would this be worth to you?
Research:
Conduct research online and/or via your network to identify prospective revenue management consultants. Do they provide positive case studies, online reviews or testimonials and if so, are they positive? Furthermore, are any of these from a property with a similar brief and/or profile that indicates they can deliver what is you want them to help you achieve at your property? Or do they currently work for someone you know and if so, would they recommend them? If not, you might be able to call one (or more) of their clients to ask them if they have helped them to meet their goals at their property.
Invite For A Consultation:
If you can find a revenue management consultant that has been recommended to you from a reliable source and has favourable comments from clients, request a face-to-face or video consultation to discover if you can build rapport and identify if this individual will help you foster a revenue-based culture at your property. Do you envisage this individual to be someone that you and your team would collaborate well with?
Set Goals:
It is crucial, before you begin to work with a revenue consultant, that you clearly define your goals and objectives for your property and ensure you reach a collaborative agreement to work towards them. Once you have done this, be sure to subsequently track performance using pre-agreed metrics so that you can measure the success of their endeavours.
Are You Ready To Reach Your Revenue Goals?
At Guest Forward, we are set up to provide a complete, revenue management service and serve as a friendly, proactive addition to your on-property team. So, whether you wish to increase your hotel occupancy, achieve a more profitable Average Daily Rate (ADR), or reduce the time you spend managing your distribution channels – we can help! Get in touch with us today to book your free revenue performance audit.
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