Report: 'Revenue Systems' event
- 3 min read
A few months ago, the event “Revenue Systems” organised by RevenueProfs took place in Amsterdam. RevenueProfs is an interactive Revenue and networking platform, powered by HSMAI for revenue professionals who are in charge of “Profit maximisation” in their company. Revenue managers, revenue directors and revenue management solution providers visited the event.
Three guest speakers shared their views and provided interesting real-life examples of how Technology and Revenue Systems can be used to make better decisions on revenue and profit optimization. The first speaker, Gino Engels, Co-Founder of OTA Insight illustrated typical dilemmas hoteliers face in a rapidly changing distribution landscape and showed examples of channel optimization strategies. He spoke about importance to know when and how to use: (1) “commission overrides” on OTA’s, (2) hotel market demand data, (3) rate intelligence information and (4) review ranking & review analytics.
The second speaker, Margitte Verkruijsse, Vice President Business Development of Snapshot spoke about “Big data” and so-called “small data” that hotel can and should use in order to make informed decisions. Ms. Verkruijsse expressed a belief that data will be a key drive in our new economy and “data is new soil” on which everything else will grow. Managing hotel demand is a challenging task, since the IT landscape is fragmented and complex. Many system vendors dictate which data can be exchanged between applications. There are cases when in order to generate a standard report for a Revenue meeting, reports from multiple systems have to be generated and combined in Excel. According to a study conducted in the UK, mentioned in the Snapshot’s presentation, 76% of hoteliers heavily depend on Excel for their RM decisions and often feel that they spend more time on “managing Excel” instead of “managing hotel demand”.
The third speaker, Quentin de Metz from PriceMatch, discussed three generations of Revenue Management Systems and their evolving role in RM decision-making and rapidly changing distribution landscape. Only in Amsterdam, according to PriceMatch there were more than 10.000 additional addresses on airbnb. Bookings from mobile devices are increasing (especially for a shorter booking window), there is a 20% projected growth of mobile bookings for 2015. New market players are coming up with business models that potentially could be disruptive.
I returned full of inspiration and examples that I would like to share with my next group of Revenue Management students (August 2015). An important takeaway was that Revenue Management Technology is becoming increasingly important AND needs to be paired with skillful professionals able to use it to create competitive advantage. I am enthusiastic to see a strong link between the topics presented by the industry speakers and my PhD research on Revenue Management Systems and on how Revenue professionals use them.