Total customer profit optimization is the process of achieving the most profitable mix of customers across all of a hotel’s assets.
Revenue managers should consider total customer profit optimization in their operations, according to panelists on a webinar hosted by the Hospitality Sales and Marketing Association International University, Hotel News Now and STR.
Total customer profit optimization is the process of achieving the most profitable mix of customers across all of a hotel’s assets, said John Wallace, president of gaming and hospitality of The Rainmaker Group, during a webinar titled “Total segment profit optimization.” Those assets include guestrooms; function space and catering; bars and restaurants; and spa, golf, retail, etc.
Although the concept seems straightforward, Wallace said it is slow to implement because it is difficult. However, that doesn’t mean revenue managers should give up, he said. First, they must establish a strong foundation and start with the basics.
Wallace said before revenue managers go down the path of total customer profit optimization, they should ask themselves a few questions:
By: Alicia Hoisington
The above is an extract of the original article available at: HotelNewsNow