Maxx Royal and Voyage Hotels Revenue Director Batuhan Şahin has outlined the key elements of effective hotel revenue management, highlighting the importance of aligning product, distribution, pricing and promotion strategies.
Speaking at the panel titled “From Separation to Cooperation: Integrated Commercial Strategies for Increasing Hotel Revenue” during the International Antalya Tourism Fair, Şahin emphasised the importance of the 4P marketing framework in developing hotel businesses' commercial strategies.
According to Şahin, product, place (distribution), price and promotion must be planned in coordination to achieve sustainable commercial success in the hospitality industry. He said hotels need to ensure that the right product reaches the right target audience.
He stressed that businesses should first clearly define their products and identify the customer segments they are designed to serve. They should then determine the appropriate source markets and distribution channels.
Guest data and technology shape marketing strategies
Şahin underlined that pricing strategies must be consistent with a hotel's product and distribution approach, while promotional activities should be developed after these elements have been established.
He noted that whereas travellers previously evaluated hotels through catalogues and brochures, digital channels have become increasingly influential in booking decisions.
In response to this shift, Şahin said hotels should collect, analyse and utilise guest data through appropriate technological infrastructure to reach their target audiences more effectively.
CRS, PMS, CRM and RMS integration is essential
Addressing the technological infrastructure of revenue management, Şahin highlighted the importance of ensuring that different hotel management systems work together.
He said integration between the Central Reservation System (CRS), Property Management System (PMS), Customer Relationship Management (CRM) and Revenue Management System (RMS) was important for commercial performance.
According to Şahin, these systems enable hotels to make decisions based on accurate and integrated data.
He added that hotels should first establish the infrastructure needed to manage their distribution channels effectively before developing their operational systems and customer relationship management capabilities.
Şahin also pointed to the advantages of cloud-based systems capable of integrating with different software platforms, saying these technologies support personalised pricing and marketing strategies.
He noted that each hotel could adopt a centralised data management approach suited to its operational requirements, but stressed that data should be managed holistically regardless of the systems selected.
Wrong pricing can undermine digital marketing
Returning to the importance of cooperation between departments, Şahin said hotels should develop their commercial strategies holistically, beginning at the investment stage.
He warned that even the strongest digital marketing campaigns might fail to deliver the expected commercial results if a hotel's pricing strategy was incorrect.
He also noted that underpricing could negatively affect profitability, even when it generated high sales volumes.
Şahin emphasised that finance, sales, revenue management, digital marketing, operations and general management teams should work towards the same commercial plan.
He said departments pursuing independent objectives would not provide a sustainable business model for hotel operations.
He also cautioned against planning tourism investments solely by looking at competitors' prices or products.
Instead, hotels should analyse their own strengths and weaknesses and develop appropriate positioning strategies.
Şahin concluded by highlighting the importance of conducting SWOT analyses, differentiating products, selecting target markets and preparing revenue management plans within a common strategic framework.
