4 Key Areas To Focus Your Revenue Strategy in 2024
From global sports events to notable elections, how will you adapt your revenue strategy for success in 2024?
We asked industry experts from around the world to share their insights for what the year ahead will bring, and how best to adapt to the challenges and opportunities to come.
Opportunities and Challenges for 2024
1. Revenue Management Trends
Sheran Loh , Vice President, Revenue Management (Corporate), Frasers Hospitality believes there are three key revenue management trends to look out for in 2024.
She lists them as:
· Revenue management becoming a commercial strategy. Future commercial leaders will be capital allocators who understand the business and make investments to influence the business mix.
· Centralization of revenue management functions. This will help teams to leverage cross-border economies, talent, and technology to provide maximum returns.
· Dynamic optimization and monitoring. No longer should RMs be looking at price optimization three times a day. The industry needs to move to live optimization and real-time alerts.
2. Technological Shifts
Jordan Hollander , CEO of HotelTechReport.com , sees hotel tech spend continuing its upward trajectory in the year ahead.
“2024 presents a dynamic and exciting landscape for the hotel industry, shaped by technological innovations and strategic shifts. From the widespread adoption of GenAI to the changing dynamics of customer acquisition, hoteliers are facing a landscape rich with opportunities and challenges. Staying informed and adaptable will be key to navigating these trends and capitalizing on the potential they offer for enhanced operations, improved guest experiences, and overall business growth,” he says.
3. Maximizing Groups Business
Contracted business, meetings, and events will play a central role in the revenue strategy of Minor Hotels Europe and Americas in 2024, as key drivers of revenue, while maintaining a healthy segmentation mix.
“B2B will be a key part of our business mix in 2024, as it can help to mitigate the potential impact of decreasing guest spending on B2C segments. By focusing on managing contracted and group business, we can maintain our advantage and continue to drive demand and optimize results in 2024,” says Cori Inti Galindo Páez , VP Commercial Growth, Minor Hotels Europe and Americas.
4. Total Revenue Management & Profitability
Wilhelm K. Weber , Chief Strategy & Digital Officer, Grand Metropolitan Hotels , urges revenue teams to focus on profitability, not revenue. One way in which Weber sees hotels creating further revenue opportunities is in F&B.
“Through the pandemic, takeaway delivery increased a lot and customers got used to a new F&B app format. Now, customers can make their table reservations online, order, and pay through the app. It’s all electronic menus, so yes, the prices can change,” he comments.
Recommended by LinkedIn
Duetto in the News
Duetto announced on February 7 its recent acquisition of Micerate, a provider of dynamic pricing and online booking tools tailored for meetings and event spaces.
“This strategic deal underscores Duetto's plan for dynamic revenue management solutions, with a focus on the groups and events sector,” writes Esther Hertzfeld in HOTEL MANAGEMENT Magazine .
And did we mention…
Duetto was once again voted the #1 RMS in the world by users in the HotelTechAwards 2024.
Duetto scooped the 🥇 Gold Medal 🥇 in the RMS category for its GameChanger dynamic pricing solution in last month’s HotelTechAwardsn 2024 by Hotel Tech Report.
Duetto’s ScoreBoard forecasting and reporting application was voted #2 in the Business Intelligence category. The company was also named one of the Top 10 Best Places to Work and named in the Top 10 Hotelier’s Choice Award.
✍️ Subscribe to our e-newsletter ✍️
Get the latest revenue strategy thought leadership direct to your email inbox. Subscribe now and never miss a story.