Companies could see revenue rise by up to 16% if they put as much time and effort into managing revenues as they do in cutting costs, a report has said.
Software development specialists Traventec said firms should place greater importance on revenue management and ditch manual systems which, predictably, the report described as costly, labour intensive and prone to error.
Traventec sales vice president Howard Frost said: “Survival for travel companies means being profitable and competitive and is dependent on successfully managing two fundamental factors – cost and revenue. While we often hear about cost-cutting strategies, the revenue side of the equation is an equally important focal point in times of business pressure.”
He added firms must identify business processes, skilled personnel and software solutions to successfully manage revenue.
“Our view is that this is not happening enough,” said Frost.
Efficient revenue management can deliver increases in profit through faster decision-making, more effective marketing, improved efficiency and increased productivity, he added.
