In a recent webinar hosted by ZS Associates and Rainmaker, experts delved into the topic of how to communicate your revenue strategy and in doing so, get their buy-in. As you think about effectively deploying your 2019 revenue management (RM) strategy, here are some tips on who to talk to, what to discuss, and how to meaningfully position yourself. Considering the deployment and stakeholder buy-in of your strategy is an aspect not fully planned for.
Over the years, revenue management has changed a great deal. Today, revenue management is its own function with higher standing in hotel leadership. When considering how to optimally align on deployment of RM strategies, you must overcome the complex issues preventing proper positioning, such as the perceived risk of potential losses outweighing probable gains.
To overcome these challenges in deploying your RM strategy, here are the first three tactics.
- Approach Like a Marathon, Not a Sprint
Make cross-functional alignment a priority. With large scale ideas, buy-in from multiple departments is essential. For example, changing BAR rates to drive a surge in occupancy will affect the housekeeping department’s staffing needs. Changing your revenue management strategy will affect operations and other departments. Making sure the revenue strategy is socialized with the hotel leadership team is key to implementing that strategy. Thinking about the impact on the hotel, beyond just a revenue strategy will ensure the implementation process is successful.
- Lead with the End in Mind
As you present your strategy to different team members, think about what they need to take away at the end of the presentation. For example, continuing the example above, if the property’s occupancy will be increasing as a result of your RM strategy, operations will need to account for increased housekeeping and laundry hours. Stakeholders need high level information on why the change is being made and the impact the decisions will have across the organization.
- Show Them the Money
In the event you want to implement a strategy, have a plan on how to estimate the impact. Start with a design of your action and a consideration of how you will measure success. Next, estimate the impact. How much incremental revenue do you expect? Third, track the results. How much did taking this action generate?
For more detailed examples on each of these tactics, as well as information on the other two tactics - Sell to Sales and Think Like an Owner, download the webinar!