The Perks & Challenges of being a Independent Hotel Revenue Consultant

Being a independent hotel revenue consultant can be very rewarding. You get to work with properties from different parts of your home country and from all over the world. This constantly adds to your skill set and experience as you continue to learn by working with different types of accommodation outlets in different markets. You also get exposure to many different hotel technology solutions and are able to experiment with them. You also have the freedom to work on your own terms and take on as much business as you can cope with, as well as have the possibility to expand and recruit for a team under you to help grow your business even further, when the time is right. I’ve had some amazing clients, both past and present. 

Now perks aside, it is also very challenging  are here are some common challenges you can face, and why projects can sometimes fail.

1. Stakeholders don’t buy into your proposed changes and vision.

People with very little revenue management knowledge and experience think they know what works when it comes to generating revenue, and no matter how hard you try to change their train of thought - they simply won’t budge. They are simply not open to change. This sets you up for failure from the get go. Should you come across a situation like this, it is best to shake hands and walk away to avoid wasting your time. Remember - a partnership has to work both ways, not only one. That is why you should have a probationary period to assess if the partnership is working or not..

2. Too many chefs spoil the broth.

Revenue system access tends to be shared with too many people on site at the hotel as well as with you. You may notice certain things being changed that weren’t you and it can be difficult to pin point who it was. It is always best to restrict revenue system access and only grant it to the revenue manager in charge, especially since they are the ones who are ultimately responsible at the end of the day.

3. Scapegoating.

It can be common to be treated as the scapegoat - economy is not doing well, you get blamed for poor revenue performance. OTA is undercutting the hotel - you get blamed for rate parity. Something goes wrong with a system that is not your fault - you get blamed. OTA Commissions are high - you get blamed. There can be a lot of ‘let’s blame the revenue manager’ that goes on. It really surprises me how many people will look for any opportunity or chance to blame one another, or throw another ‘under the bus’ as they say. Revenue Management is a team effort - not a one man band as many think. Lots of this blame game stems back to poor education - many people still don’t understand the intricacies of revenue management or what a revenue manager actually does.

4. Reporting.

It can be common for stakeholders to insist you use their reporting templates and not your own as they are used to seeing information in a certain way, and again are not open to change. A lot of the time this is counterproductive as their reporting templates are not easy to use, messy to interpret, and simply do not provide you with enough information in order to make accurate analysis and recommendations. As a consultant we have our own way of working, and our templates are often far more visual, and are optimised for accuracy and efficiency purposes, however stakeholders can insist on using their own reports so a compromise usually has to be made.

5. Inadequate systems.

Someone with very little revenue management knowledge and experience has recently decided to implement new revenue related systems at their hotel (usually to save a few pennies), but turns out these systems cannot handle things like overbooking by room type, have limited reporting tools, terrible customer support & hinder revenue performance. This again contributes to setting the revenue consultant up for failure from the get go as they are limited to what they can do system wise.

6. You are seen as a threat.

People in the organisation you are helping may see you as a threat or think you are ‘out to get them’. While this certainly is not the case, it takes time to build relationships with staff in an organisation and for you to prove them otherwise. Getting access to systems with the correct user rights, and access to other important information can be tricky during this period. 

7. Late payments.

It can be common to be paid late. Priority is given to onsite employees and not consultants, remember you are not on their payroll. Your invoice may have been forgotten about (mistakes do happen), or delayed due to cash flow problems. Sometimes it can be difficult and awkward to address this with clients, however you have to remember you are self employed and you have to stay on top of your income. In some cases invoices can even go unpaid due to severe cash flow problems, in which case you will need to seek legal help in order to recoup these payments. I’ve always been a firm believer that if you can’t afford to take someone on - don’t.

8. You are responsible for maintaining and growing your client base - nobody else.

Zero clients means zero income, and it can be harder to find clients in low demand periods or in economic downturn. You can also go long periods without finding any new clients. 

9. Clients can take liberties.

Clients might behave improperly or disrespectfully by overstepping boundaries, making excessive demands, or not showing enough consideration for professional limits, time, or rules. This certainly doesn’t apply to the majority, but it can happen. 

Conclusion:

In summary, the best clients you can work with are the ones who respect you and respect what you have set out to do. They are willing to embrace change and are open to learn from you. They also empower and trust you to make the right decisions. It is clients like these that are the ones worth working with, and the ones who you can sustain a long term working relationship with. It is also these type of clients who will benefit the most out of the partnership - both financially and professionally.