Today's Revenue Management thought:-

The Rise of Tech-Savvy Hospitality Management Programs

As the industry evolves, educational institutions must revamp their hospitality management programs.

Curricula should incorporate emerging technologies, emphasising data analytics, artificial intelligence, and cybersecurity.

By nurturing a tech-savvy mindset, educational institutions empower future leaders to navigate the dynamic landscape of automated hospitality seamlessly.

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Today's Revenue Management thought:-

Refined Skill Sets for Tomorrow's Hospitality Professionals.

With automation handling routine tasks, the focus for hospitality professionals shifts towards honing specialized skills.

Education becomes pivotal in cultivating emotional intelligence, creativity, and problem-solving abilities.

Tomorrow's workforce will thrive on the ability to deliver exceptional human-centric experiences, capitalizing on the unique qualities that machines cannot replicate.

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Today's Revenue Management thought:-

Embracing Automation in Hospitality.

The hospitality industry is undergoing a transformative shift with the integration of automation in its operations.

From check-in kiosks to robot-assisted room service, technology is streamlining processes.

As we welcome these advancements, the need for education in hospitality takes center stage.

Industry professionals must adapt to these changes, mastering the art of seamlessly integrating automation to enhance efficiency.

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Today's Revenue Management thought:-

It’s Friday - time to contemplate.

“Greed, for lack of a better word, is good.  

Greed captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. “

We all remember these words uttered by Gordon Gekko in the iconic film “Wall Street”.

Is this the way Revenue Managers should think about generating their revenues or should there be an increased focus on pricing ethics ?

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Today's Revenue Management thought:-

Consumers are generally resistant to accepting price gouging in hospitality as a norm within pricing cycles.

While fluctuations based on demand and seasons are expected, exploiting emergencies or high-demand situations excessively can lead to negative consumer sentiment.

Such practices are often perceived as opportunistic and unfair, eroding trust between businesses and customers. Acceptance of price gouging as a routine pricing strategy contradicts consumer expectations of fairness and transparency.

The hospitality industry relies heavily on positive customer experiences and satisfaction. Engaging in price gouging risks damaging a hotel's reputation and may result in long-term consequences, such as loss of customer loyalty and negative online reviews.

Consumers increasingly prioritise ethical business practices, and any departure from fair pricing can lead to a decline in trust and overall satisfaction.

For these reasons, hotels are advised to exercise caution and prioritise ethical considerations in their pricing strategies to maintain a positive and sustainable relationship with their customer base.

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Today's Revenue Management thought:-

Hotels should avoid price gouging for ethical and strategic reasons.

• Firstly, it risks damaging the hotel's reputation, eroding customer trust, and jeopardising long-term success.

• Secondly, it may lead to negative reviews and social media backlash, deterring potential guests.

• Thirdly, cultivating customer loyalty through fair pricing is crucial for sustained profitability in the competitive hospitality market.

  • Lastly, engaging in price gouging during emergencies can be perceived as exploitative, tarnishing the hotel's image and potentially attracting legal consequences.

Prioritising fair and transparent pricing aligns with industry standards and fosters positive relationships with customers, contributing to a sustainable and reputable business.

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Today's Revenue Management thought:-

While price gouging is controversial, hotels might consider it for several reasons.

Firstly, during high-demand periods, dynamic pricing maximises revenue, optimising financial performance.

Secondly, in emergency situations or unexpected events, fluctuating prices can help manage limited resources efficiently.

Thirdly, strategic pricing can incentivize early bookings, reducing uncertainties and improving operational planning.

Lastly, it allows hotels to adapt to market conditions, staying resilient during economic fluctuations.

Nevertheless, ethical considerations and customer perceptions should guide such practices, ensuring that short-term gains do not compromise long-term trust and brand reputation in the competitive hospitality industry.

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Today's Revenue Management thought:-

During my recent trip to Munich, my flight was canceled due to a snowstorm. I got rebooked on a 6:40 AM flight, and considering the challenging weather conditions from the city center to the airport, I opted to book a hotel nearby. The usual price for this 3-star property is around €80, but due to the circumstances, they were charging over €300.

This experience prompted me to reflect on how consumers perceive price gouging. Although I was irritated, I had found an expensive but necessary solution to my problem.

In an industry that relies on positive experiences, engaging in price gouging can lead to lasting consequences for a hotel's success and reputation. Many customers view it as exploitative and unfair, causing erosion of trust and loyalty.

• Did I feel exploited? Yes !

• Did the hotel create a situation where trust and loyalty were eroded? Not in my case—I had never stayed there before and didn't anticipate the need to stay again.

• Did I leave a negative review? I considered it but opted for a neutral and factual review.

Do you leverage such situations to your property's advantage, and do you foresee any negative consequences of doing so?

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Today's Revenue Management thought:-

It’s Friday - time to contemplate.

Contemplating prices is akin to deciphering the language of value in the marketplace. It's not just about numbers; it's a strategic meditation on perception, customer expectations, and the delicate balance between affordability and quality.

Like a skilled artisan, thoughtful consideration of prices crafts an experience that resonates with the audience, transcending mere transactions to create a symphony of perceived worth.

In the intricate dance of commerce, each price tag is a brushstroke on the canvas of consumer consciousness, inviting contemplation and influencing the narrative of value in every purchase.

In the fast-paced hospitality world, an efficient RMS is a game-changer for maximising revenue and enhancing guest experiences. Invest wisely (both your time and money) !

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Today's Revenue Management thought:-

Hospitality is a symphony of service, and revenue management is the conductor ensuring every note, every room, and every service harmonizes to create a masterpiece that echoes through both guest satisfaction and financial prosperity.

Have a profitable week !

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