Chief Revenue Officers and the Hospitality Industry
In our work here at ACCUR Recruiting Services we are often tasked with sourcing qualified Chief Revenue Officers and other highly placed executives faced with extracting the highest possible revenue within the hotel industry.
Within the hotel world, Chief Revenue Officers have become more and more important due to one word: competition. Customers are less loyal than they used to be, and they have numerous options, as well as a bevy of online tools that have them snapping up bargain rates that cut into the profit of the largest hotel chains. Enter the Chief Revenue Officer: this executive must be highly seasoned, and both creative and strategic in the pursuit of minimizing hotel vacancy rates and maximizing profits.
What does a Chief Revenue Officer Do?
Working closely with a hotel or hotel chain’s executive team, the CRO is an integral part of crafting a hotel’s vision and then translating that vision into an on-the-ground set of strategies and tactics. A CRO must be a numbers whiz because seeing patterns in data is essential for realizing profits. Finally, this executive must be a skilled manager of people, capable of motivating employees to do their best work and in turn realize efficiencies at every level of the organization.
What are the biggest challenges in the industry?
The proliferation of OTAs (Online Travel Agents), including Expedia, Orbitz, Travelocity, Hotels.com, or Hotwire have really squeezed revenue in the business as companies adhere to the practice of hotel rate parity, or maintaining consistent rates across all distribution channels, even though travel booking sites take a commission. Further complicating matters is the complex patchwork of regulations around rate parity, especially in Europe.
Hotels need OTAs for marketing purposes, but the commission rate cuts into the bottom line. CROs focus on doing whatever they can to get consumers to book direct with hotels, from crafting creative incentives like free parking or wifi to optimizing the digital booking experience through SEO improvements and design enhancements. So you can see that this position requires a great range of skills to be successful.
How to hire an effective Chief Revenue Officer?
When looking for an effective CRO, some of the things we consider are:
- Entrepreneurial qualities: can this person do more than just look for more revenue and can they create new opportunities and markets?
- Business acumen: a successful CRO has the ability to analyze balance sheet, create strategic road maps, understand market positioning and communicate all of this to every important individual in the org chart.
- Data-driven: A great CRO is always numbers-minded, able to harness data to craft better plans and exceed prior benchmarks.
- Results-oriented: We look for candidates who can deliver results but also take ownership for tactical issues in the short term as well as long-term planning.
Making the right hire
Rely on ACCUR Recruiting Services to help you find your next Chief Revenue Officer. We have years of experience and a network that spans several key markets in New York, Florida, the Caribbean and Europe and have worked with both large international chains, luxury properties and boutique hotels. Contact us to learn how we can help you find the perfect executive.
