Last year, I wrote about why hiring analytics geeks is crucial to building a successful revenue management team, making the case that analytical firepower would help airlines and hospitality organizations be better equipped to handle challenges created by predictive analytics and data optimization. The ideal revenue management team would actually include a mix of geeks (science, engineering and economics grads who are capable of running in-depth analyses, and visualizing and solving complex problems) and veterans, who have valuable industry experience. Providing mentorship programs so these people can advance to leadership positions is also crucial to your team’s success.
Once you’ve hired and mentored the right mix of people (your revenue management “dream team”), you need to make sure the team stays on track to meet its goals by adding a revenue enhancement section to your revenue management department. This group, often high-performing analysts that have expertise in operations research and understand the science behind revenue management systems, would focus on supporting and motivating the revenue management team in four key areas:
- Onboarding and training: Facilitating effective onboarding and regional transitions, maintaining business scenario based training documents, offering continuing education through ongoing programming and providing cross-training opportunities and individual coaching to underperforming team members.
- Business practices: Contributing ideas on how to improve revenue management processes by benchmarking against industry best practices and changes in the commercial operating environment. Communicating regularly with operations and key stakeholders to ensure revenue management strategies are maintained throughout the organization, and aligning current processes to best practices.
- Strategic planning: Identifying revenue generating opportunities, working closely with revenue management analysts and sales to improve the allocation of their inventory, assist in carrying out analyses and exploring opportunities and set KPIs and performance measurements.
- Revenue support: Ensuring effective and reliable generation of regular reports, offering incremental substantive reporting to encourage innovation in the revenue management department, monitoring divisional performance and addressing concerns through managers and supervisors, working with IT to develop decision support tools and providing or assisting in producing ad-hoc reports. This includes performance management, weekly meetings with international, domestic and regional teams to review budgets and performance and decide strategy together to help teams get as close to their budgets as possible.
Hiring and mentoring a revenue management “dream team” is the first step to improving your company’s revenue management strategy and meeting your goals. By adding a revenue enhancement team, you’re taking an important next step to ensuring your overall success.