How Hotel Revenue Training Can Help With Hospitality Management

Many are unaware of how many responsibilities those in the hospitality industry are accountable for. Booking rooms, cleaning rooms, and providing concierge service are not the only things involved in successfully running a hotel. In fact, the hotel establishment itself must also be managed through capital expenditures. Hotel revenue training introduces trainees to the responsibility of managing the property investment by meeting the specific objectives of ownership. Hospitality management incorporates the latest asset management techniques and provides a set of sensible tools and methods that asset managers can use to achieve their goals.

Those who enroll in hotel revenue training will learn how to direct and renegotiate management contracts, assess capital spending and manage their implementation, and monitor expenses to reduce costs. Following completion, they will be aware of how to scale the profits of the property and expense performance against the market, perform asset-risk analyses tailored to current market conditions, and evaluate various refinancing opportunities to reduce debt costs or free up capital for other investment opportunities. In order to succeed in a job role, one must be very skilled in financial practices, as he or she will gather, describe, and analyze data on the hospitality industry to extract important business information.

In addition to management contracts, those in hospitality management will also deal with problems within the hotel operations itself. Businesses that accept reservations must handle the problem of no-shows: customers who make a reservation but fail to show. Hotels can protect themselves against revenue loss from no-shows by overbooking or requiring a full payment in advance, with a non-refund policy. Hotel revenue training teaches managers how to strategically overbook and how to evaluate group size and room specifications in order to decide which rates to charge. They will also become aware of the risks associated with overbooking and review strategies to minimize costs and alleviate customer impact.

Forecasting also becomes extremely crucial to those working in hospitality management. To fully realize the property's revenue potential, managers must be able to effectively manage group reservations. Those in hotel revenue training will learn how to create forecasting models and explore yieldable business and incremental costs and revenue opportunities. Asset managers use forecasts to predict demand and learn how demand influences other organizational functions. Forecasting is used to calculate and account for error and apply length-of-stay controls. Successful revenue management strategies hinge on the ability to forecast demand and to control room availability and length of stay. All in all, forecasting is a revenue management strategy and it can also positively impact staff scheduling and purchasing.

Hotel owners entrust in hotel asset managers to provide stability for their establishment. Anything and everything from capital expenditures to overbooking to monitoring expenses become the responsibility of these managers. The success and running of the hotel is heavily influenced by their decisions. Financial skills and well thought-out forecasting become necessary for victorious hospitality management. Though an extremely involved job, this career proves to be a multi-functional and very exciting career for those who pursue it. If this occupation sounds interesting to you, hotel revenue training can help you get there!

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David Shoemaker is Vice President of Learning Solutions and Innovation at eCornell. For more information on hotel revenue training, hospitality management, or eCornell, please visit http://www.eCornell.com

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