Life of Ryan

Kay Ryan is not sure how many directors of revenue management - looking after an entire group - there are around the country, but it's not many. That's because revenue management at corporate level is a relatively new science, an import from the USA originally used in the airline world. And whereas most hotels or hotel groups will have someone responsible for maximising revenue from rooms in individual hotels, it is unusual to find someone at head office with that sole role.

So what is revenue management - or, to give it its full title, technical revenue management? In a nutshell, it's about forecasting demand and pulling the necessary corporate levers, Ryan says. That process involves attaching a tariff to promotions that might be publicised as much as a year in advance, judging the prices the market will stand in the future, and pitching them against the competition. It also has to take into account revenue from regular visitors.

The starting point comes from segmenting the market and identifying all key user groups, such as business and corporate guests, repeat business such as airline crews, and leisure guests. Thistle separates its business into seven major market segments, with 28 minor market segments underneath these.

Customer behaviour
The skill comes in gaining incremental revenue and by not diluting what would have been achieved in any event. Success is measured by revenue growth, usually through volume. "We have to predict customer behaviour from one year to the next and assess whether we are ahead, or behind the game," Ryan says. "The most important thing is not to score an own goal."

But revenue management is not glorified sticking-a-finger-in-the-air, she says. It's based on historical data from year to year, and market predictions, so it tends to be reasonably accurate. There's still a certain amount of crystal ball-gazing, however, and coping with unforeseeable events, such as the terrorist attacks of 11 September. "Last year, all the rules went out the window and the results were not all we wanted them to be," Ryan admits. "Even so, we were able to make more informed decisions than some of our competitors. If you have the correct tools in place, you take out some of the guesswork."

But Ryan can't just sit in an ivory tower at head office and make her predictions. She has to work with revenue managers in individual hotels to ensure that everyone is pulling in the same direction - and that can mean overruling them. "We have the ability to log into their hotel systems from here," she says. "We audit from head office and publish the results. Occasionally, I have to make a decision that will affect them. It's my job to rain on their parade, sometimes."

Sophisticated technology, of course, helps to make prediction an easier business than it used to be. Ryan tells the story of how, as a young rooms revenue manager, she once overbooked Easter by 100% in November of the previous year. The general manager was a bit worried by this, but Ryan's decision was vindicated. By the time Easter came, her predictions were spot on, and the hotel ran at 100% full, without anyone having to be relocated.

Does Ryan get any sleep at night? Yes, she replies: "Actually, I quite like the tension, but it's educated tension."

Kay Ryan

Age: 43
Position: director of revenue management, Thistle Hotels
Accountability: reporting to sales and marketing director
Likes: emerging technologies; working with a dynamic team; diversity of the role; having an impact on all areas of the business; a glass of wine at the end of the day
Dislikes: sweeping assumptions; rules; people who always agree; getting up early to miss the traffic; traditional thinking