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Discover the key challenges that may be affecting total revenue management at your venue, and learn effective strategies to overcome them.
More than 100,000 events occur every day, from boardroom meetings, private parties, conferences, tradeshows, etc. The global meetings, incentives, conferences and exhibitions (MICE) industry was valued at US$916 billion in 2019 and is forecast to gain another US$1.78 billion by 2030, with a compound annual growth rate of 6.1% from 2020 through 2030, according to a recent report from Next Move Strategy Consulting.
The landscape of meetings and events has undergone a significant transformation in the wake of the COVID-19 pandemic. Hoteliers are now navigating the "next normal," where previous operational norms no longer suffice, leading to missed revenue opportunities. In response, revenue managers are turning to total revenue management as the optimal approach.
Explore the top three hurdles in total revenue management and unlock powerful solutions to steer your property towards success once more.
Total Revenue Management Challenges (and Effective Solutions)
Challenge 1: Doing More with Fewer Resources
Teams are working with smaller staff and finding it increasingly difficult to complete work manually. Additionally, budgets are lacking after a tough 18 months of operating with little to no revenue.
The Solution: Stay Centered and Automate to Deliver in Real Time
Automated venue management software empowers team members to streamline the entire venue process, minimising costs, maximising profitability, and optimising efficiencies throughout the organisation.
For this to happen, all tools needs to be accessible in one place, including:
- Live venue availability feature
- Finance and billing tools
- Strategy tools and revenue management system integration
- Group booking and management tools
- PMS/CRS/POS integration
- Online booking engine
To maximise revenue, digitalise real-time data for your clients. Time is valuable for both you and your clients, especially when resources are limited. Long Requests For Proposals (RFPs) are outdated now. What you need is a personalised hotel booking engine that is user-friendly and highlights available meeting spaces. An integrated platform enables you to respond promptly to inquiries, decide on immediate bookings, and manage rates and availability, or progress to a comprehensive RFP process.
Challenge 2: Changing Your Mindset
The pandemic forced us to adapt and think on our feet. But it’s rarely easy to change processes—especially when you’re working with fewer resources.
The Solution: Remain Flexible to Find the Opportunities
Embrace the evolving nature of business and assemble the right teams to navigate these changes seamlessly. Look for opportunities to capitalize on these shifts strategically. Consider this perspective from a seasoned VP of revenue and marketing at a global chain:
"Our meeting rooms are not just spaces; they are essential for driving bedroom sales."
Embrace a forward-thinking mindset and embrace change without hesitation. Furthermore, establish digital practices and implement COVID-safe measures that instil confidence in your clientele, encouraging them to recommit to group bookings and events with peace of mind for the future.
Challenge 3: Figuring Out Your Focus
Because things changed so rapidly with the COVID-19 pandemic—and they continue to move quickly due to new variants emerging today—knowing what to focus on can sometimes seem daunting.
The Solution: Lean into the Right Tech Tools
Integrated technology solutions provide a competitive advantage. We know that venues will generally win more business by responding faster. In fact, instant responses have shown the highest conversion rates.
You can reduce inertia by educating the industry how to instill confidence in technology that can deliver distribution and immediate online booking capability while retaining control with the ability to manage availability rates and inventory for groups, meeting space and F&B.
iVvy’s software solutions offer proven results, including:
- Speeding up the event booking process from six weeks to six minutes
- Drastically decrease average venue response and conversion to sale rate from 3 - 19 days to just 2 minutes
- 53% increase in conversion rate
- 60% increase in efficiency of centralized sales management
- 30% reduction in cost of acquisition
- 50% increase of ability to cross-sell and upsell
Unlearn What You’ve Already Learned
These revenue management challenges present the perfect chance to reset, rethink, reimagine, and revamp strategies for enduring resilience and sustainability. The foundation for a flourishing meetings and events business begins now.
Remember, disruptive technology serves as the cornerstone for success, leading the way towards recovery and growth.
