Traditionally - hotels separate the sales - marketing - revenue management and reservations disciplines. As they are all revenue-generation functions, it is imperative they are fully integrated so that they complement each other and allow for revenue optimization, RevPAR and GOPPAR growth, as well as optimal market share.

In more progressive operations and business models, one person oversees all of these related functions. We predict that in less than five years, leading hotel performers will have a director of revenue who will oversee the integration of all revenue generation disciplines, ensuring maximum revenue capture and market share.

Let's all say it together:

In-te-gra-tion (pronounced: n- t-grey-shun)*

1. An act or instance of combining into an integral whole.

(* "integration." Dictionary.com Unabridged (v 1.0.1). Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.)

Having a comprehensive and integrated approach allows for clear and coordinated responsibilities towards the same goal. So, who owns what responsibilities in a revenue integration strategy?

Here are the 30,000-foot basics:

1. Marketing

Marketing owns the message. Marketing goes way beyond advertising and public relations. Marketing starts with defining who your customers are, then analyzes what, why and how they buy. Strong marketing has a deep understanding of your customers and then defines a consistent, differentiating and deliverable message—all of which stimulate your targeted customers to buy.

2. Sales

Sales own the relationships. Relationships are why people buy and remain your customers. They may buy due to their relationship with your brand, or a past experience, or a connection with a salesperson. What is most important to remember is that people do not want to be sold to, rather they want to buy. It is important that your sales efforts focus their time on how to create a relationship with a targeted customer and present why this potential client would want to buy. Great sales efforts are customer-focused not product or self-focused.

3. Distribution

Distribution owns the management of channels. Channels are the way your customers find you—which then leads to them buying (hopefully). They include reservations, electronic channels (Travelocity, Hotwire, Expedia), consortia-mega agencies, Web sites and search engines, to name a few. Your effective management and partnership with distribution channels gives you a larger customer reach and therefore expands your potential capture of demand.

4. Revenue Management

Revenue Management owns demand. Revenue management is the process of capturing, analyzing and applying business intelligence against potential demand. It takes the efforts of marketing, sales, channel management, reservations, market intelligence, trends and segmentation to forecast potential demand and make strategic and tactical decisions around this information.

By using an integrated approach, your revenue optimization team can leverage the market opportunities to position you for both top-line and bottom-line success.

Renie Cavallari is founder and director of inspiration for Aspire, the premier provider of customized and innovative revenue optimization solutions for the hospitality industry across the globe. 

For more information visit www.aspiremarketing.com or call Renie directly at (602) 392-0700.

First appeared in Hotel & Motel Management