As the global financial crisis continues to veer into unchartered waters, hospitality revenue managers are facing a sustained period of economic uncertainty.

During this time, there are a number of key things that revenue managers can do immediately to help optimize their existing channels of revenue.

Revenue managers need to understand that during these uncertain economic times, their role is constantly evolving. Through the implementation of new areas of thinking, and closer relationships with strategic partners hospitality revenue managers can play an even greater role within their organisation.

Hotels should also be approaching this current period with a cautious but optimistic outlook. While the current economic conditions are leaving many hospitality organisations with the prospect of tough decisions throughout 2009, they should all bear in mind that the economy will eventually rebound. The way your hotel is positioned now, will greatly affect how your hotel comes through this current financial crisis.

One important area that revenue managers need to play particular attention to is the level of strategy and structure they put into their decision making. Greater levels of strategic and structured thinking need to become an integral aspect of how all hospitality revenue managers approach their work during this period. 

Revenue managers need to think long term during this period, not only about the current sales figures. Strategy is not about constantly changing direction, it is about setting your hotel up for the future with a range of longer term objectives.
The hospitality industry is constantly changing, and older strategies will not always be applicable to these new unique situations. It is of vital importance that you work even more closely within your team to attempt to position your hotel as a leader and to come out of this period stronger and more resilient, ready for greater levels of demand.

Through constantly reassuring and providing guidance to all involved staff members, hotels will see both improved employee morale and greater levels of commitment. During these times, when many industries including the hospitality industry are facing job losses, communication with staff is vital to the ongoing success of a company. This improved flow of communication needs to be consistent, and will result in greater levels of understanding and involvement from all staff involved in the revenue management process

Take the time to talk through pricing decisions with your staff, so they are aware of the different ways that you are safeguarding your hotel. Also now more than ever is the time to work even closer with your sales team. This should be done using the tools and information you have available to provide them with relevant and helpful sales data.

Close relationships with a hotels distribution partners should be an aim of revenue managers at any time, but in the current conditions these relationships take on even greater importance and meaning. These closer relationships can go a long way to driving volume, if revenue managers approach this opportunity cautiously.

There is no need to be on every single travel distribution website, instead you should focus on those partners that can actually drive your booking volumes. Focus on establishing Win-Win situation that protects your inventory and pricing integrity..

One final area that all hotels should be paying particular attention to is consistent pricing. The famous saying has never had such relevance as it does in this day and age. Poor marketing can damage an organisation, but poor pricing can damage an entire market. With all the pressure in the industry currently to reduce rates, we need to be careful that we do not fall into a short term pricing panic which may prove impossible to rectify.

Instantly reacting to market pressure and dramatically reducing pricing may provide some short term benefits, but it could leave the entire market behind the game for some time. Any pricing decisions need to be made with certain time frames in mind, even down to only certain days of the week. If prices are slashed across the board, forcing competitors to do the same, consumers will not react well to increased rates in the future and nor should they.

Whilst the wider hospitality industry is currently facing a sustained period of economic uncertainty, revenue managers should always be aware that there are a number of things they can immediately implement to weather the financial storm. If revenue managers take the time to approach this period in a clear and consistent manner, they will find they are not only safeguarding their hotels but positioning them for a bright future when the market eventually rebounds.

All industry members should understand that whilst the current economic uncertainty will be prolonged, they need to position their organisation in a way that will help them come out on top when the outlook begins to improve.