In our LodgIQ RM Corner series, our readers get an inside look into the minds of revenue managers and their thoughts on the industry from around the globe. Today we interview Kieran Spencer, Director of Sales, Marketing and Revenue for Punthill Apartment Hotels, a portfolio of 13 properties located in Australia.
What are the major challenges you face on a daily basis?
Developing and sustaining brand direct booking growth in an industry that has increasingly become commoditized and driven by price.
How did you go about setting rates let’s say a few years back vs. today? What has changed?
In a market like Brisbane, increased supply combined with stagnant demand have created a trading environment that’s far more dynamic than a few years ago, when we all had far more confidence in our ability to yield from a strong market. It’s important to be responsive, but at the same time maintain composure with pricing decisions.
How important are market dynamics and competitor movements to your decision making?
Very important, firstly, defining a specific competitor set, making calculated guesses about their overall market mix, and obtaining aggregated performance reports where possible plays a significant role in decision making.
A vision into the future – what will be the revenue managers job in 5 years’ time?
Growing strategic importance of revenue management, flowing through to the executive level will place far more emphasis on performance metrics and incentives that are driven by NOP. The successful Revenue Manager of the future will have a diverse skill set that will need to combine finely tuned analytical, negotiation and people management skills. The ability to manage profitable external business and internal key stakeholder relationships. This is obviously already happening, but I believe there will be increased clarity and definition around these key factors.
What is your take on peer to peer accommodation sites?
No doubt there is a place in the market for them, and the additional options they provide consumers.
Did you feel as if you were sometimes competing on rate alone?
The simple fact that OTAs allow customers to filter by price/budget has made it even more challenging for brands to get cut through in the market place. So yes, it can be a huge factor taking this in to consideration.
About Punthill Apartment Hotels
Punthill Apartment Hotel Group is an independent, Australian-owned and -managed accommodation provider. Founded in 1987, the group has grown to become one of the largest serviced apartment operators in Australia with 12 properties in Melbourne and one property in Brisbane.
Punthill Apartment Hotels are located and designed specifically with the corporate traveler in mind. As leaders in the serviced apartment accommodation sector, Punthill Apartment Hotels offer guests the commitment of a quality accommodation experience which stems from a company philosophy based on customer satisfaction.