Balancing Tech and Tradition in Hospitality: Velislava Kovachka's Vision for Revenue Success
Meet Velislava Kovachka, Cluster Director of Revenue, a visionary with 25 years in luxury hospitality, blending economics expertise with cutting-edge revenue strategies. From guiding independent hotel groups to redefining chains, her journey culminates in leading revenue and reservations for Bulgaria's iconic 5-star hotels Grand Hotel Millennium Sofia, Grand Hotel Sofia, Kings’ Valley Medical and Spa Hotel .
Velislava's insights bridge tech innovation and heartfelt hospitality, ensuring the future thrives on both data and genuine guest connections.
At Best Stay Event, her wisdom will steer the course for revenue managers worldwide, embracing leadership, technology, and timeless guest experiences.
Velislava, with your extensive 25 years of experience in the luxury hotel segment, you've witnessed significant shifts in revenue strategies over the years. How has your personal journey in hospitality shaped your approach to optimizing financial performance for hotels, and what key insights have you gained along the way?
The main conclusion I've arrived at is that as hoteliers, we can no longer afford to work without technology. Investors and owners who solely invest in the hotel base and infrastructure, but refuse to adopt revenue systems, online payment systems, CRMs, personalized upsell software, etc. throughout all stages of the guest's stay, will not find themselves among the winners in this industry.
Another crucial insight is that leadership is now more pivotal than ever in the hotel industry. Many employees were laid off during the Covid pandemic, and they may face challenges in returning. Without leaders to reignite the spirit of true hospitality, no matter how much software we purchase or how well-furnished and renovated our hotels are, success will elude us.
In today's landscape, the financial performance of hotels relies heavily on guest reviews, making it a crucial area for improvement. Online reputation impacts all hotels, irrespective of their size, brand, or chain affiliation.
Not a single property should underestimate or ignore the feedback provided by guests.
From my perspective, the key insight lies in integrating high-end technology on one hand and nurturing a revenue-focused culture throughout the organization on the other.
The hospitality industry is no stranger to technological advancements, and AI has been playing a prominent role in revolutionizing revenue management. How do you envision the future of revenue strategies by integrating AI and other cutting-edge technologies? How can hoteliers strike a balance between technology and personalized guest experiences?
For future guest loyalty, maintaining a human touch is crucial. They won't recall internet speed, remote control buttons, or website user-friendliness. What will stay with them is the feeling of their stay experience.
Implementing an All-in-1 hotel management system or integrating different interfaces can empower Revenue managers to make swift strategic decisions by analyzing data from customers' past reservations. Technology streamlines reporting processes, freeing up time from data analysis, and providing space to better comprehend customer needs.
In the hospitality realm, AI aids hoteliers in offering personalized recommendations based on preferences and feedback, enhancing the customer experience with competitive pricing. However, striking the right balance isn't simple. Technology for its own sake can yield opposite results. When guests arrive, they should sense a sincere welcome, human touch, kindness, and empathy. It may sound cliché, yet nurturing our team cultivates guest care, fostering loyalty. This, metaphorically, is akin to maintaining a balance between the left and right hand.
As the Cluster Director of Revenue Management for Sofia Hotels Management, you have a unique perspective on guiding both independent hotel groups and hotel chains. In your opinion, what differentiates revenue management approaches between independent luxury hotels and large hotel chains? How do you navigate the challenges that arise in each scenario?
Both versions have pros and cons. Bigger does not always mean more effective.
The pros of hotel chains in regard to revenue management include standardization, well-developed procedures, cost-effectiveness, system integration, and a well-known brand.
On the other hand, there are cons. Processes are often global, sometimes clumsy in terms of adoption and support, and not tailored to certain hotels, which might result in revenue losses. Additionally, revenue management is frequently outsourced or hired externally. Operationally, this can create obstacles to revenue meetings and coordination between the Revenue, Sales, and MICE departments.
Challenges in independent hotels mostly revolve around technology operations. The marketing efforts and advertising expenses required to establish the brand are significantly higher compared to chain hotels.
This is why, despite higher commissions, I'm among the few revenue professionals who don't view OTAs as enemies, but rather as reliable partners who assist in promoting and establishing the brand. This perspective might not hold true when managing the revenue process in a chain hotel.
Pros of independent hotels include fewer levels of reporting, process localization, and quicker implementation of promotions and strategies.
With the evolving landscape of the hospitality industry, the role of a revenue manager is continually evolving. As someone who has successfully adapted and thrived in this dynamic environment, what essential skills do you believe future revenue managers must possess to stay ahead and drive success in their roles? Are there any specific traits or qualities that you consider crucial for thriving in this competitive field?
The two major skills are analytical and strategic thinking, along with leadership. Nowadays, all processes are highly dynamic, and customer behavior is rapidly evolving.
Being delayed in your analyses means being late in making decisions. Quickness is required not only in forecasting but also in the action plan.
Strategic thinking, vision, and the proactivity of Revenue Managers are crucial for future success.
Given the variable environment and guest needs, a new approach is necessary. This implies that Revenue Managers must convince GMs, owners, Commercial & FO teams, etc., that new ideas, new standards, and updates or purchases of new software are essential for profitability.
Leadership has never been more critical. It stands as one of the most significant qualities of a successful Revenue Manager.
As we travel toward the future of revenue strategies, Velislava's insights invite us to remember that beyond algorithms and data, it's the genuine guest experience that drives success.
Prepare to dive into the conversation at the Best Stay Event, where Velislava and other professionals gather to exchange insights that will mold the industry's future.