To maximize revenue all employees need to know how they can contribute.
In the old days revenue management meant up-selling at the front desk, or in the restaurant, or selling the most profitable brand in the bar. Now we know that all employees can be involved in revenue management. To out perform the competition effectively managing all aspects of revenue management is crucial.
What is revenue management?
Anything that any employee or guest says/does to encourage people to buy something.
I’ve seen lots of definitions of revenue management. The definition really isn’t important. What is important? Recognizing that every employee and every guest have opportunities every day to increase your revenues.
It all sounds so simple. Just get our employees and guests to help sell our hotel. Ah, but what are we going to sell today? I rarely get an answer from hotels when I ask that question. Why? Most businesses encourage people to up-sell. Front desk is easy. So is the restaurant and bar. But how about housekeeping, engineering, security, bell staff, etc. What’s your concierge doing to sell your hotel today?
What one hotel does.
I was talking to a GM last week and asked what they were doing to drive revenue management. His answer surprised me and got me thinking.
Each day he has his Department heads talk to their employees. The Department head identifies one specific thing to sell today to drive revenue. Departments are given 5 minutes per day to meet with employees to get them excited about today’s revenue tip.
I asked GM for an example. Yesterday, the Executive Housekeeper had two coconut cream pies from the restaurant for employees to try. Then Executive Housekeeper asked each employee to ask any guest they saw if the guest had tried the wonderful coconut cream pie in the restaurant today. If the guest answers no, the housekeeping employee asks the guest “Are you working hard today?” When the guest says yes, the employee says “Then reward yourself. Take a break and have a cup of coffee and a piece of pie. They’ll even deliver it to your room if you would like. You deserve a treat.” Then the housekeeping employee goes on with their job. GM says the dialogue rarely takes more than 15 seconds. Of course some employees are better than others.
Director of Engineering, on the same day, had their employees greet guests with a question. “Have you had a good enough day to reward yourself yet?” The guest can answer yes or no. Either way, the engineering employee can say, “You deserve to reward yourself, either in the spa, or visit the gift shop and pick out a good book or magazine. Make it a great day, and thanks for staying with us.”
Give me a break here. How many of your employees are really willing to do that?
That was my reaction to the GM, who laughed. “You’re right, not every housekeeping employee or engineering employee is that outgoing. I had the exact same thought before we tried this. We have been amazed at how many employees have gotten into the spirit, including a lot of employees we would have thought were too timid.
I asked about employees who may lack good English language skills. GM indicated that described most of their housekeeping staff. Hotel bought an inexpensive business card printer. Executive Housekeeper has cards printed up each day that say: Thank you for staying at our hotel. If you would like a treat today, try the coconut cream pie in the restaurant. It’s great. Have a nice day and thank you for staying with us.” The caveat? Housekeeping leave these cards in every room they clean. Housekeeping employees who don’t speak much English wear buttons that indicate they are just learning English. The employee can point to the button when they hand a guest the card. Or when guests ask questions. GM indicates that this is working very well.
Hotel has been doing this for few months now. Guests are talking about it. Some guests even ask about it when they check in. GM indicates they are tracking between 25-30 room nights per month from new guests that mention the friendly staff that give tips every day. These are room nights that used to be at competing properties.
Last added benefit. GM indicates the restaurant is getting more locals every month as employees are introduced to good desserts and then tell their friends.
Do you have revenue generating tips you can share?