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Revenue Management: fatal weapon or protection for rates?

Four professionals shared their opinion of the Revenue Management application within a hotel group with participants in the Global Lodging Forum. Discover a few key points that were developed during this round table.

How would you explain the job of Revenue Manager to your partners?

  • "We offer support through franchise services. We try to maximize what hotels do. We have an expert Revenue Manager that our hoteliers may consult with. We are working on these two things." Nicolas Asterdal, Director European Revenue Management & Distribution, Choice Hotels International

  • "We have a four-person team of Revenue Managers and Account Managers. Each person is in charge of a region and offers support, provides an outside perspective as well as counsel as to how the headquarters are viewed. They are given material as to the type of Revenue Management to be adopted. It is fairly well perceived because it is established in the form of consulting. Generally speaking they listening. We have developed a newsletter system where we offer a great deal of information and advice." Alexandra Quesne, Revenue Management & Distribution Manager Best Western


The relationship with respect to customers has changed. There are more and more moderate price strategies. Do you believe there could be a "serpent", a "virtual tunnel" of prices beneath which a product is devalorized and above which the difference with respect customer expectations would be too great? Do you have this image in mind?

  • "That's nothing new. Today, clients have the possibility of saying clearly what they think; which has changed a great deal. Each price we activate is related to the quality of the product and customer expectations. There is a hidden cost that is more widespread." Nicolas Asterdal, Director European Revenue Management & Distribution, Choice Hotels International

  • "We must remain vigilant regarding the pricing policy of hotels because it may be tempting to increase our prices, but it is important to think in the long term." Bastien Houssiaux Director, Revenue Management Managed Hotels Europe Wyndham

  • "It depends on what is expected of the customer. Sometimes owners try to valorize real estate and don't want to "bludgeon" the guest to not risk receiving bad reviews as a result." Alexandra Quesne, Revenue Management & Distribution Manager Best Western

  • "The market dictates the price. It is important to keep in mind the impact that it has on the image of the brand and the perception the guest will have and the likelihood of their returning at a later date. It is important to integrate the customer's potential future value. Revenue Management tends to increase prices and facilitate the objectification of the decreases in prices that could generate volume." Emmanuel Queugnet, VP Call Center, Revenue Management Pricing & Distribution, Groupe Barrière



Are expectations new? Have problems with Revenue Management remained the same?


  • "We have implemented a unified commercial unit. WEA ll have the same goal: to sell franchised hotels. The biggest change occurred when we addressed our offer to the client rather than limiting ourselves to the number of rooms… We are de-compartmentalized. That takes time." Nicolas Asterdal, Director European Revenue Management & Distribution, Choice Hotels International


Is it necessary to de-compartmentalize jobs in order to reach a balance and find the right levels?

  • "Yes, a team effort is necessary that evolves over time. It is necessary to manage the situation case by case, further to the terrorist attacks, each town has reacted differently in terms of occupancy rate and average daily rate. At the same time it is necessary to to keep our pricingp policy in mind. It is a global effort." Bastien Houssiaux, Director Revenue Management Managed Hotels Europe Wyndham

  • "After the attacks, slashing prices was not going to make people return. It was necessary to to go back to what had been forgotten to diversify a certain clientèle. hotels that were just opening received much support. It was necessary to go back to basics." Alexandra Quesne, Revenue Management & Distribution Manager Best Western

  • "The Revenue Manager cannot be the only absorber of the impact of such events; it takes a team. It is important to adapt, to maximize decisions, be logical and try to change angles of attack in the long term and avoid worsening the situation." Emmanuel Queugnet, VP Call Center, Revenue Management Pricing & Distribution, Groupe Barrière


We are up against a consumer trend of last-minute booking. What must be done: maintain or drop prices?

  • "It's nothing new; the hotel industry has always worked last minute. What is new is that rates and cancellation conditions make it possible to get the most out of last minute. It is complex today. We are opening dialogue with hoteliers; trying to make them do tests. We are experimenting, doing things differently and comparing. It's a job educating about what to and not to do." Nicolas Asterdal, Director European Revenue Management & Distribution, Choice Hotels International

  • "Its an overall trend that could be observed for several years and across different clientèle. We had to adapt while keeping the same base by not  dropping prices at the  last minute minute as that would have an impact on the profit margin." Bastien Houssiaux Director, Revenue Management Managed Hotels Europe Wyndham

  • "Our message began with changes in our sales conditions. We developed cancellation insurance so people could book risk free. We told hotel directors to set very flexible sales conditions with low fares. we do not encourage last minute prices. It is up to the Revenue Manager de to work with distributors and take risk last minute to ensure our sales." Alexandra Quesne, Revenue Management & Distribution Manager Best Western

  • "The market and the units are fragmented. Statistical models have a difficult time adapting to market disruption. It is necessary to be objective and share decision making. It is complicated and can lead to stress for teams that are first in the line of fire." Emmanuel Queugnet, VP Call Center, Revenue Management Pricing & Distribution, Groupe Barrière


Is there still a card left to play in terms of direct channels, a way to manage channels dynamically?

  • "Ours requires teamwork between both parties. We are very close, we have a collaborative relationship because both parties must be winners." Bastien Houssiaux Director, Revenue Management Managed Hotels Europe Wyndham


  • "It is not a "battle". 42 languages is too expensive for a site of chains. It is a world that must work together ensemble, bring things; the goal is for the hotel to work and to satisfy customers." Alexandra Quesne, Revenue Management & Distribution Manager Best Western

  • "I don't think the "battle" -which isn't one at  all- has been lost. Offers have been enriched (for example with thalasso) that are not related to classic OTAs, when the brand has real legitimacy clients tend tend to book directly. Distribution is a real lever for improvement." Emmanuel Queugnet, VP Call Center, Revenue Management Pricing & Distribution, Groupe Barrière

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