"Revenue and yield as terms create the biggest problems in RM culture due to

Travel Distribution Summit Europe 2007: By EFT Correspondent

Yeeld Solutions' main focus has been on creating bespoke training solutions
plus a variety of on and  off-site consulting projects on all aspects of
revenue management and distribution, with many contemporary hotels and hotel
groups across Europe.

On how the work and interaction with clients has shaped up, Yeeld Solutions'
Director and Founder David Turnbull said, "With virtually every customer we
have worked with in the last 12 months, a higher percentage than expected of
the work involved, has been related to organisational structures and meeting
and communication culture, with a high focus on improving internal
communication networks and increased efficiency of data collection and
analysis."
   
He added, "In 2007, Yeeld Solutions has started to provide private label CRS
services to a select number of hotel marketing organisations. The USP behind
this service is to give hotels access to reliable, integrated technology with a
high level of service, whilst offering ongoing online and onsite training as
part of the package."
   
In an interview with EyeforTravel.com's Ritesh Gupta, Turnbull shared his
viewpoint on RM'professionals' expertise and training, practices for building
RM team and much more. Excerpts:
   
RM leaders and professionals within the hotel business have generally come
through the ranks significantly lacking formal education and experience in
microeconomics, which defines RM. Do you agree with this?
   
Having graduated from hotel school in Scotland in the mid-nineties, I fully
agree with this statement, especially as my personal grounding in 'yield
management' at degree level comprised of a one-hour lecture plus hand-outs.  It
is essential that industry and academia work more closely to generate
appropriate learning materials at both graduate level and in the workplace but
unlike other 'economists', hotel revenue managers require a fundamental love of
the industry, be passionate sellers of all products and services available and
not treat them simply as 'units' to shift.
   
Is lack of knowledge in microeconomics the biggest challenge which RM
professionals face today?
   
In fairness you could also apply this statement to many General Managers and
Director of Sales too.  As a consultant to independent hotels and hotel groups,
I see the threat of overly dominant sales and marketing or finance departments
being a bigger threat, and so continued education to 'streamline' the process
of business development is the biggest challenge Yeeld Solutions faces on an
ongoing basis.
   
What route/practices do you recommend when it comes to building RM team?
   
Every hotel has a different challenge when building its RM team.  However it
is my belief that the very words 'revenue' and 'yield' create the biggest
problems in establishing an RM culture within a hotel organisation, due to the
combination of fear and apathy they generate.  Unifying titles such as
'business development' or 'marketing operations' are better placed to achieve
an integrated strategy, plus they are better suited for employees who maintain
customer facing roles.
   
How should suppliers focus on development of RM programme for the General
Managers, Directors of RM and Directors of Sales and developing RM standards
within in the organization?
   
RM can not be learned in one day and suppliers who aim to make a 'quick buck'
from the all encompassing 'one-day seminar' are not helping hotels or the
industry.  Suppliers need to focus on developing ongoing learning programmes,
both on-site and online, that allow the attendees to test the theory and
feedback on the results. 
   
How does demand management enhance the timeliness, quality and accuracy of
information distributed between suppliers and intermediaries?
   
Creating an integrated distribution platform with a manageable list of key
intermediaries ensures the timeliness, quality and accuracy of information
distributed.  However intermediaries (both agencies and technology suppliers)
still have a long way to go in providing processes and business models that
will allow hotels to shift demand from the most cost efficient to the highest
yielding channels in a fast or ideally, automated manner
   
What tools are available for hotels to connect to and manage multiple
distribution channels from a single dashboard to forecast, monitor and shape
demand for their room inventory and other offerings?
   
Obviously the growth in usage of channel management tools from many providers
has enabled even the smallest hotel to efficiently manage a widening
distribution net.  The investment by CRS and  PMS providers to establish direct
connects, whilst still focused at a global level, are also widely used tools by
many larger hotels and hotel chains.
   
Which in your opinion is the best way to have single point-of-control to
manage distribution and translation of product information to each of
distribution channels?
   
This varies depending on the size and investment potential of the hotel
organisation.  Being able to centrally integrate all channels into either a PMS
or CRS is the most logical way forward, yet specific financial and technological
barriers currently prevent this from being an 'obvious' choice, especially in
the independent sector.