Should Revenue Management be involved in Reputation Management?
By Monika Morrobel, CRME, CHDM, Area Director of Revenue Management, Pyramid Hotel Group, HSMAI Revenue Optimization Advisory Board Member
We know that reputation management is important, but how involved should revenue managers be in that process? I brought this topic to the leaders of the HSMAI Revenue Optimization Advisory Board to discuss our role in reputation management. Below are our top five takeaways.
- Recognition of Reviews as Influential Decision Drivers: Consumer behavior is heavily influenced by reviews, with a staggering 95% of potential guests considering them before making a booking.
- Direct Correlation Between Reviews and Revenue: Even marginal improvements in positive reviews can lead to substantial revenue gains, with a mere 0.5% increase potentially translating into a remarkable 25% boost in revenue. This underscores the tangible impact of reputation management efforts on the bottom line.
- Proactive Engagement with Reviews: Revenue leaders must spearhead efforts to raise awareness about the significance of reviews within their organizations. By highlighting the correlation between reviews and financial performance, revenue professionals can galvanize action across departments to improve review ratings.
- Accountability and Ownership: Operational teams, particularly general managers, play a crucial role in maintaining and enhancing a hotel’s reputation. It’s imperative to hold them accountable for addressing issues that impact review scores, fostering a culture of continuous improvement in service delivery.
- Comprehensive Organizational Approach: Reputation management should not be viewed in isolation but rather as a collaborative endeavor that involves revenue leaders, marketing and sales teams, and operational stakeholders. By analyzing data comprehensively, organizations can gain insights into the intricate relationship between service quality, reviews, and pricing strategies.
Go Deeper:
Questions for Your Team:
- How much involvement does RM currently have in reputation management, and who “owns” the process?
- What responsibility should RM have in the process?
- Is RM currently making strategy decisions based on the state of reputation management, and should they?
- Who is monitoring the revenue impact of reputation management?
About HSMAI
The Hospitality Sales & Marketing Association International (HSMAI) is committed to growing business for hotels and their partners and is the industry's leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals and their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as the Commercial Strategy Conference, Sales Leader Forum, and Adrian Awards. Founded in 1927, HSMAI is a membership organization comprising more than 5,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at hsmai.org.
