The New Paradigm for Revenue Management
By Bhanu Chopra CEO, RateGain | April 19, 2015
Revenue Management as a discipline is becoming more exciting everyday. The world is changing at a pace never seen before, driven by technology. The rapid growth in technology and various other factors like changing customer demands and demographic changes are making the job of a revenue manager more complex. This rapid pace of changes presents opportunities as well as challenges.
How can revenue managers make the most out of this situation?
In a recent conversation, Benedict Cummins, Publisher of HotelExecutive, and Bhanu Chopra, CEO and founder of RateGain, discussed how revenue managers can leverage these opportunities and make more revenue, consistently.
Benedict: Bhanu, your company has been in the Revenue Management space for over 10 years now. Over that period, the discipline has evolved a lot. What do you think are the key drivers of the change?
Bhanu: Benedict, I believe we need to answer this question firstly by examining what has changed for customers. I feel that the primary driver of the changes in the hospitality industry is the easy availability of information. OTAs, review sites, metasearch sites and social media have thrown open a world of information. The phenomenon of information going online and becoming universally available was the big paradigm shift.
Earlier consumers had very limited choices when they wanted to book a hotel room. However, people today have more options than ever before and clear benchmarks to base their decisions on. They can research options based on price, amenities, reviews and various other factors and make a choice while at home, at work, or on the move. Nowadays, when a customer makes a booking, he or she knows that they are getting true value for the amount of money that they are spending. This facilitation of the decision making process is the big paradigm shift.