January 11, 2012

Revenue Management Challenges for Independent Hotels across Gulf Region

Economic challenges is hanging over the Gulf Countries industry and being felt even more by independent hotels due to lack of system (a performing CRS, Foreign Sales Support, RFP impact...). With additional supply still being added, or residential buildings converting to Hotel Apartments, the pressure for hotels will still be effective in 2012-2015.

At the very time they need a revenue manager who not only does the usual opening and closing rates and inventory but also has the ability to generate revenue.. The Revenue Manager should be performing a full time analytical tasks, know strategic market information and makes sounds decisions. Many revenue managers for independent hotels are performing a multi task jobs involving Sales / Reservation / Revenue / Operations tasks. Can they really perform? Their job description cannot give them hands on Revenue Management effectively.

At the very time these hotels need more of a presence on the internet through the OTAs and other distribution channels, they can’t afford to hire an expensive e-commerce company. What if they could hire a revenue manager with the skills to get them exposure that they need to generate incremental revenue? The salary and payroll burden for someone with this experience would likely be more than their payroll can support.

If the economy continues to be uncertain, these are the hotels that suffer first.

Now RSVP Hospitality proposes that simple Outsource Revenue Management Program (6-12 months program) that guarantees to generate incremental revenue equal to or greater than their fees.

We grow RevPAR, GOPAR and Market share, and you will definitely appreciate an outsider look.

Contact us at info@rsvp-hospitality.com, for more information.




2 comments:

  1. When looking at the staffing cost in Al Ain and in UAE, (Recruitment, Visa, flight tickets, fringe benefits, monthly salary, accommodation, trainings...), your solution is a great answer for hotels, who can afford for a structure along with Revenue Manager, E-Commerce Executive, Reservation Managers. All this fixed head counts will be privilege for Sales people who can sell us outside in the market. Do you also propose a service to screen Revenue Managers, because it is always hard to find a qualified one.

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  2. Thanks Johnny, we studied and reviewed all aspects from a functional - organizational and financial point of view for Hoteliers. We have seen many hotels, due to budget constraints, combining the position of Director of Sales and Revenue Managers, within one same person. I just think it's not feasible because those two jobs scope are totally different from each other. The outcome will either be a confused Sales Team or weak performance. In regards to screening revenue managers or even revenue management executive, we have done it for few hotels in UAE, so feel free to contact us at info@rsvp-hospitality.com. Rahul @ RSVP Hospitality

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We thank you for participating in our Revenue Management discussions, and look forward to bring you the best of our ideas. For more information, please visit our company website at www.rsvp-hospitality.com