The Convergence of Hotel Marketing and Revenue Management

Author: Ellis Connolly

At the start of my career, marketing was entirely different than what it is today. Without aging myself, I’ll just say that it was more my experience that marketing tested a lot of different programs, and we as sales members hoped for the best. But now, with so much data to rely on, the marketing game is no longer trial and error.

With the new technology available, marketing can make more educated decisions, leading to more targeted campaigns, and stronger revenue gains. Revenue management tools have the data that hotels need to make these strategic marketing programs a reality.


Here are just a few of the valuable insights available from hotel revenue management, and what marketing can do with them to drive more business to your hotel.

Track your hotel’s leads and lags.

It’s easy to forget when your hotel had a slow or busy season, especially when it’s been fluctuating over the past few years. Revenue management tracks these trends for you, so that you can better predict when marketing will need to step in. These indications of “leads” or “lags” present the perfect opportunity to prevent a revenue dip, or better yet, capture more revenue. For example, your marketing team can prepare for a slow season by running a promotion or reducing rates to attract more business.

Monitor your competition.  

“Competition” is one of the 4 C’s of marketing, and another area that revenue management tools can help monitor on your hotel’s behalf. You can easily see your hotel’s rates vs. your comp set, helping you find out if your rates are too low or too high. When your hotel can offer a competitive price, either when it matters most or when you can afford it, you will have an edge on your competition that they didn’t expect. And that, is priceless.

Forecast demand.

Let’s talk ancillary revenues. Outside of the price of the room, these are the biggest drivers of your business. And let’s face it, there are some guests that are just there for the room, and others that are there for a whole lot more. These are the guests that spend more money at the pool, bar, restaurant, or on room service. Ensure availability for the most valuable guests with demand forecasting. Pairing your PMS data with revenue management can help you secure rooms for valuable guests, ensuring greater profits over the same period of time year over year.

Opportunities like the ones I’ve outlined above are more realistic than you think. With the right tools, and a clear strategy, your team can find a success story with just a few simple steps:

  1. Align your teams. Marketing and Revenue Management teams need to work together to make magic.
  2. Assess the data at hand. Revenue managers can help identify the opportunities within the data, while marketers can identify the right marketing program to help capitalize on them.
  3. Take Action on the big opportunities. With so much data at hand, it’s easy to be overwhelmed by the potential. Make headway on the biggest opportunities first to allow your teams to find a big success, instead of tackling the entire list of actions all at once.

Yes, marketing has changed, but no, it is not impossible to adapt to it. Hotel technologies are not only creating great solutions, they are also integrating them together to help capture effective and efficient results for the end customer. Thanks to this, hotel marketing is living it’s best life in 2017!

Ellis Connolly_Preferred.jpg

Ellis Connolly

VP of Hospitality Sales

Ellis Connolly brings extensive hotel industry knowledge to The Rainmaker Group as its Vice President of Hospitality Sales. With more than 15 years of experience in corporate hospitality, Connolly is responsible for leading Rainmaker’s growing sales organization and making the company’s industry leading suite of revenue management and profit optimization solutions accessible to the global hospitality market. Connolly’s broad range of experience includes executive sales and business development roles with both start-ups and large enterprise organizations within the global hotel and travel sector. He also possesses extensive experience in building market penetration for hotel analytics products.

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