The Importance Of Integrating Revenue Management Into
Your Sales, Marketing & CRM Processes
Norma Tomkinson
Regional Vice President, Revenue Strategy
Marriott International, Inc. – Asia Pacific
The EyeforTravel Revenue Management & Pricing in Travel Asia-Pacific
January 17, 2007
Bangkok, Thailand
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and may not be reproduced, disclosed, distributed or used without the express permission
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Marriott Today
• 2800+ operating units
• More than 500,000 rooms
• U.S. and over 70 countries
• Headquartered in Washington, D.C.
• Approximately 133,000 associates
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Portfolio of Lodging Brands
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International Division
• 1995
– 49 Properties
– International Revenue Management team of 3
• 2006
– 350 Properties
– International Revenue Management team
including
• Regional VP’s of Revenue Strategy
• Area Directors of Revenue Strategy
• Property based Directors of Revenue Strategy
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Agenda
• Benefits of integration
• Overcoming the challenges
• “Make it work”…
• Pricing and strategy
• RM and CRM
• Measurement
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Benefits of Integration
•One team working to
achieve the total hotel
goals – stronger
partnerships between
RM, Sales & Marketing
•Better strategy
development and
decision making
•Revenue, profit, Revpar,
market share
improvement
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Overcoming the challenges
• You can anticipate:
– Global cultures – “we’re different”
– Management style differences
– Selling to senior management
– A North American implementation plan
may not work
– Change management issues – resistance
to change
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Sales and Revenue Management Integration
Revenue
Sales Capture Management
• Customer Information • Forecasts
•
Communicate • Inventory Availability
Booking Data
Share • Pricing
• Turn Down Data
• Competitor’s
• Competitor’s Strategies Align Strategies
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“Make it work”
• The approach:
– Careful positioning – redefine roles &
responsibilities
– Identify champions
– Develop local talent
– Looking for wins to tell the story
– Increase the profile with senior
management
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“Make it work”
• What else is needed?
– Senior management involvement and
accountability
– Buy in from key influencers
– Changing the perception of the job
– Keeping it simple due to increasing
complexity
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Pricing & Strategy
Data Collection
& Analysis
Measurement
Forecasting
& Critique
Strategy
Implementation Optimization
Prioritization
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Strategy & Pricing
Integration between development & execution
Business Revenue
Evaluation Management
Strategy
Revenue
Execution
Strategy
Inventory Revenue Sales & Operations
Management Analysis Marketing & Finance
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Strategy & Pricing
• Annual Business Planning / Budget Process
– Integrate strategy and positioning across
all revenue streams
– Develop key actions for RM, Sales,
Marketing, eCommerce
– Align goals and bonus / incentives across
disciplines to achieve total hotel goals
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Strategy & Pricing
• Integrate strategic business goals with the
RFP process
– RM brings strategy, analysis, and business
evaluation
– Sales brings customer relationships, demand,
and negotiating skills
– Shared goal of bringing the most valuable
accounts to the hotel
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Revenue Management & CRM
•RM assisting sales to
educate the customer
•Marketing
communications support
RM strategies
•Sales people can quote
rates confidently
•Sales activities support
RM strategies
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Measurement
•Benchmarking
•Market share
•Tracking & data integrity
•Measurable goals
•Stretch goals
•Owner’s priorities
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