In a recent interview, Daniela Hupfeld, the Group Director of Revenue & Capacity Management at Europcar International, described how Revenue Managers are often viewed as “boring number crunchers”. However, with the Revenue Management function becoming increasingly complex and strategic, Hupfeld explains how it should now be considered on par with Sales and Marketing.
Commenting that Revenue Management is “all about strategy, tactical actions, implementation and evaluation”, Hupfeld suggested that the traditional view of Sales and Marketing being the main drivers of business is no longer a reality. Instead, this duo is now a trio, with the three disciplines working interdependently. With Sales concerned with customer accounts and Marketing focusing on the end-consumer, Revenue Management is a “neutral consultant” that concentrates on the organisation as a whole.
According to Nick Curcuru, the Lead Consultant for the Americas at IDeaS Revenue Solutions, this interrelationship can be mutually beneficial when used effectively. Curcuru explained that by working collaboratively, Revenue Managers and Marketers can ensure that a business effectively delivers the right price to the right consumer and at the right time. Furthermore, when Revenue Managers and Sales professionals work together to negotiate with suppliers, Hupfeld stated that the right distribution channels can also be established.
With Revenue Managers, Marketers and Sales professionals often relying on much of the same information, such as up-to-date demand forecasts, market segment analysis, and customer demographics and psychographics, the sharing of data between these functions can enhance the responsiveness of the business to changing demands and also the effectiveness of the organisation in terms of decision-making. Furthermore, by pooling these resources, these departments work towards a shared, common goal – that of the organisation.
As both Hupfeld and Curcuru emphasised, the key to establishing this mutually beneficial relationship is to challenge the culture and mindset of the departments and to develop a greater understanding of each others’ functions. By enabling Revenue Managers to spend time within the Sales and Marketing departments, as well as meeting with customers, the barriers between the functions are broken down and a more collaborative culture is established.
However, although Hupfeld identified that more companies are beginning to recognise the importance of Revenue Management as a strategic discipline, it remains an emerging area. Whereas Sales and Marketing are long established business functions, Revenue Management is still a relatively new discipline and is one that should continue to attract investment.
To read the full interview with Daniela Hupfeld, please visit the EyeforTravel website.
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