Bridging the revenue management skills gap in 2024
The hospitality industry is constantly evolving, and recent years have seen huge changes for all sectors of it. From multinational chains to independent boutique hotels, competition is fierce, and the pressure to maximise revenue is ever-present.
While online travel agencies (OTAs) like Expedia and Booking.com have provided us with new distribution channels, their high commission rates can significantly eat into hotel profits. This reliance on OTAs often comes at the cost of neglecting in-house revenue management expertise.
However, skilled revenue managers are essential for navigating today’s dynamic market. The challenge? A significant revenue management skills gap.
Why the revenue management skills gap exists
The talent pool of qualified revenue managers is shrinking as new hotels open and demand for their expertise rises. Here are some key factors contributing to the gap, which have only been further amplified by the Covid-19 pandemic:
- Centralisation: Larger chains centralise revenue management functions, taking skilled staff away from individual properties.
- Training shortfalls: Smaller hotels often lack the resources or structure to provide proper revenue management training for their staff.
- Evolving role: The role of a revenue manager has become increasingly complex and analytical, requiring a new skillset that traditional managers might not possess.
- Communication skills: Modern revenue managers need to effectively communicate complex data and strategies to senior management and hotel owners.
- Staff retention and engagement: The Covid-19 pandemic significantly impacted staff retention and engagement across the hospitality sector and we’re still feeling the effects of it four years on. Many skilled revenue managers left the industry altogether, creating a new layer of challenge in rebuilding experienced teams.
Closing the gap: Solutions for hoteliers
There are several ways hoteliers can address the revenue management skills gap and unlock their full profit potential:
Invest in staff training with OctopLus:
Upskilling your existing staff is a cost-effective and sustainable approach to addressing the revenue management skills gap. OctopLus, Octopus Revenue’s online training platform, offers a suite of courses designed for hospitality professionals at all levels.
From foundational revenue management principles to advanced pricing strategies and distribution channel management, OctopLus provides the knowledge and practical skills needed to excel in today’s revenue-driven environment.
The beauty of online training lies in its flexibility. Smaller hotels, which may face tighter budgets and staffing constraints, can benefit tremendously. OctopLus allows staff to learn at their own pace, around their existing workload, eliminating the disruption and cost associated with traditional classroom training.
By investing in OctopLus training, UK hoteliers can empower their existing workforce, cultivate a team of revenue management specialists, and bridge the skills gap from within.
Partnering with a revenue management specialist:
Another effective solution is to outsource to a revenue management consultant like Octopus Revenue. This approach offers several advantages:
- Access to industry expertise: Octopus Revenue’s team comprises seasoned revenue management professionals with a deep understanding of the UK hospitality market. They can provide invaluable guidance and strategic direction, ensuring your hotel implements the most effective revenue management practices.
- Leveraging the latest tools and strategies: Hospitality is a constantly evolving landscape, with new revenue management tools and strategies emerging all the time. Partnering with a specialist ensures you have access to the latest cutting-edge solutions, allowing you to stay ahead of the competition.
- Freeing up valuable staff time: Revenue management can be complex and time-consuming. By outsourcing to a specialist, you free up your in-house team to focus on other critical areas of hotel operations.
- Knowledge transfer: The most effective outsourced revenue management solutions go beyond simply managing your revenue. They also prioritise knowledge transfer. Octopus Revenue’s approach is to collaborate closely with your existing staff, ensuring they gain valuable insights and best practices throughout the process. This knowledge transfer empowers your team to develop their own revenue management expertise, so everyone is singing from the same hymn sheet to foster long-term success within your hotel.
Octopus Revenue: Your partner in success
Octopus Revenue offers a complete solution to bridge the revenue management skills gap. Whether it’s online training through our OctopLus courses or customised outsourced revenue management support, our team of experts can help your hotel achieve its financial goals.
Contact Octopus Revenue today to learn more about our revenue management services and discover how we can help your hotel thrive in today’s competitive market.
