Many Revenue Managers have found themselves spending too much time importing and organising data in an effort to make Revenue Management (RM) decisions. They might have a Revenue Management strategy but are often not seeing any results or agonise in the classic debate of “I’m fully booked, could I have increased my prices?” or “I’m not yet fully booked, should I be decreasing my prices?”.
Revenue Management is a relatively new concept in Hospitality and many Revenue Managers are keen to learn more about the practice. Climber Hotel offers a Revenue Management software to hotel chains and independent hotels to assist Revenue Managers with these complicated questions. Mario Mouraz, Founder & CEO of Climber comments on the recent hire of Pedro Sousa “Our company could only run with the unique, valuable insights of the people that know the industry ins and outs. Our product developers rely heavily on these insights to be able to create the most valuable software for actual Revenue Managers. Hiring Revenue Managers to help us learn and grow is part of our strategy which is why I am very pleased to announce that Pedro has joined our team”.
Pedro has more than 17 years of experience working in different roles in Hospitality, with more than 10 years with a specific focus on Revenue and Yield Management. He has worked for internationally renowned brands such as Hyatt Hotels or Corinthia International and local chains like NAU Hotels and Resorts, and SANA Hotels among others. We asked him a few questions:
What triggered you to want to work for Climber?
Revenue Management technology for the hospitality industry is developing quickly. When I was working as a Revenue Manager, although there were some tools available in the market, they were only a few and quite and expensive. I have always been interested in using technology to my advantage to conduct business and I know how important it is for technology to be made for the actual end customer. By using revenue advanced systems in my previous roles, I decided that I could make a bigger impact on the Revenue Management industry by helping Climber get insights into the struggles of a Revenue Manager.
What was the most difficult aspect of your job as a Revenue Manager?
The job of a Revenue Manager is all-around difficult. Our job is very visible to the rest of the organization and very critical to the hotel's financial health. In this Big Data era, there are so many factors impacting the development of a Revenue and Pricing strategy and the competitive landscape is also constantly changing. Factors such as city demand forecast, distribution channel costs and effectiveness, competitive pricing are only a few elements that need to be analysed and used to make data-driven decisions.
What I found the most difficult, however, is ensuring that the hotels I worked at have a healthy Revenue Management culture. What might happen in some hotels are silly things such as the front desk booking “ghost” rooms out of the fear that Revenue Managers will overbook the hotel, and they have to deal with the consequences. Marketing and Revenue Managers typically also think they have conflicting goals, and with the sales department is always a struggle as you need to balance people expectations as some of the people run on a bonus scheme. Once every member of the hotel understands how important it is to sell the right room at the right price through the right channel, we can start creating synergies and get immediate results.
What does Revenue Management software do?
The main purpose of Revenue Management software is to organise data from your Property Management System, combine it with data from your competitive set and city trends. The software will show you your forecast revenues and occupancy and propose optimal dynamic prices for yieldable market segments. Simple overviews allow you to spot untapped revenue potential with a few clicks.
What is your outlook on the industry of Revenue Management software in Portugal?
Climber estimates that 95% of hotels globally do not yet make use of RM Software solutions and instead are using Excel or other tools to organise data and make revenue and pricing decisions. The hotels that are adopting Revenue Management software do so because It saves them time in organizing data, decreases the chance of human error or biases in pricing decisions, it increases their ability to act upon revenue opportunities and it makes them more competitive, reacting to competition in real-time.
The growth in tourism in Portugal is causing competition to also grow and that has caused RM and dynamic pricing to start to play or continue playing a bigger role in hotels’ strategy. We are seeing Revenue Managers embrace technology solutions to ease their increasingly difficult jobs, much like more tech-savvy countries have started doing. I foresee that hotels adopting tools will happen at an exponential rate.
Then what I have been thinking about lately is the demand for total revenue management, currently there are no tools on the market that allow the hotel to analyse not only revenue stemming from rooms but also from other streams of revenue such as conference & Banqueting, meeting spaces, extra bed’s, parking, F&B, spa etc. The finance department has a hard time compiling all this information, so if a tool would allow all departments to analyse their revenue streams, I think it would allow the entire establishment to spot untapped revenue potential. But this will be a long-term project.
Why should Portuguese hotels use Climber as their Revenue Management software?
I strongly believe in Climber as a tool and as a brand due to its simplicity to work with, and would, therefore, choose Climber over any competitor. In terms of deciding which tool to use, not every piece of technology is suitable for every hotel. Most RM technology relies on integration with the hotel's PMS and Channel Manager, so I would recommend those looking for a solution to first see which options are suitable for their PMS. Climber is currently integrated with 30 major PMS software and will continue expanding our connectivity to be able to serve all small chain and independent hotels looking for RM solutions. With the exception of a few companies, RM solutions are gradually becoming commoditized from a features perspective, meaning the consumer will be chosen largely based on connectivity and by customer support, instead of features. Climber is an easy-to-use software with and simple and clear reporting. It is designed for people and is unique in its customer focus. Climber has extensive know-how from the work we do with actual Revenue Managers like myself and are therefore able to provide the best and most competitive services to the Revenue Managers in Portugal.
If you are interested to learn more book your appointment with one of our in-house Revenue Managers here!