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How to close the skills shortage in hotel revenue management

The hotel industry is constantly evolving and recent years have seen huge changes for all sectors of it, from the giant multinational chains to the small, family-run independents.

The market is ever-more competitive and the explosion of online travel agencies (OTAs) such as Expedia and Booking.com has only added fuel to that.

Unfortunately, this has also meant that many hotels have overly relied on OTAs to fill their rooms, paying high rates of commission for the privilege, while losing the valuable revenue management skills of their own staff along the way.

The truth is that talented revenue managers are more crucial to the hotel trade than ever in the current competitive marketplace and yet, adversely, there is a massive skills shortage.  As more and more hotels seem to open up in every city, the pool of good revenue managers becomes ever more drained, as talented staff are in high demand.

Larger chain hotels have centralised many of their administrative roles, taking skilled revenue managers off-site, while the smaller independents often don’t have the management structure in place to pass on revenue management training and knowledge.

And all the while, the role of the revenue manager becomes ever more complex and analytical. A whole new set of skills and training is required that, in all likelihood, traditional revenue managers don’t have.  In addition, the modern revenue manager also has to be able to effectively communicate these complex evaluations and strategies to their senior leaders and hotel owners, which can truly be a daunting experience to a traditional revenue manager.

Addressing the skills shortage

So what can hoteliers do to address this skills shortage and ensure their business’s profit potential is fully realised?

Revenue management training is the obvious answer, and Octopus Revenue continues to provide a range of courses to suit hotel personnel at all levels of revenue management expertise and experience.

But for smaller hotels particularly, it can seem an impossible task to free up valuable staff members for whole days at a time to attend training courses.  And as most hotels may not have the time or the money to train their employees on hotel revenue management topics, they may need to look to other options to gain these specialist skills that can help them reach their full potential.

Outsourced Revenue Management

Often hotels think that having an outsourced revenue management solution is a waste of money as they have ‘managed fine for over 10 years’, but this is usually not the case and could be limiting a hotel with great potential to just being ‘fine’.  Naturally there is a cost involved in outsourced revenue management, but the benefits far outweigh the negatives:

·         Working with a company who knows your industry means that they should know what is important to your business and how the changes brought in, by effective revenue management solutions, will affect the overall running of your hotel and the benefits that come along with it.

·         Outsourced revenue management companies will have access to all industry knowledge, the latest training and any new improvements to services that you hadn’t been made aware of yet.

·         Free up time to run your business.  Outsourced revenue management does just that, a company such as Octopus Revenue can be involved as little or as much as you want them to, taking on a whole range of revenue management responsibilities.

·         Outsourcing does not necessarily mean that the hotel management team would not be involved, as more often than not, revenue management processes and skills are left on-site, as the existing team learn and develop themselves along the way, ensuring that revenue management techniques can continue on thereafter.

For information on outsourced revenue management solutions and revenue management training courses, speak to a revenue management consultancy company such as Octopus Revenue Ltd who have a range of revenue management solutions that can be tailor made dependent upon your circumstance.

Revenue management training courses are available across various locations, providing revenue management training on a number of revenue management topics and at various skill levels. To find out more about what each revenue management course includes and how to book, visit the website.

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