Case Study

Reimagining revenue operations for a hospitality major

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Client: One of the world’s largest hotel chains

Business need addressed: Challenges faced by the company resulted in increased inefficiencies, revenue leakage, and limited growth. Causes included:

  • Fragmented revenue operations across properties due to legacy systems, disconnected data, and significant manual intervention
  • Lack of customer insight, and poor visibility on sales and health of the business due to lack of alignment across sales systems and the ERP application
  • Slowed decision-making and limited scalability due to high turnaround time to process data from different sales channels

Solution: The company was transformed into a customer insight driven organization by ensuring alignment of the front, middle, and back office, and by leveraging advanced digital solutions for further growth. The following key initiatives were taken to transform the revenue operations in the company:

  • Created a center of excellence (CoE) model to streamline the audit and reconciliation processes for improving data capture and visibility
  • Implemented effective processes to collect and analyze relevant data from different sources and properties
  • Automated data capture with robotic automation and Genpact Systems of EngagementTM for record to report (R2R), which was configured on top of the existing enterprise systems

Business impact:

  • Fueled further growth through cost savings, better insights, more informed decision-making, and reduced revenue leakage
  • 36% increase in efficiency of revenue operations by reducing manual intervention
  • Standardized and streamlined revenue capture process
  • Scalable solution for 140 U.S.-based properties

Any large hospitality chain has multiple ways of realizing revenue—from point-of-sale (POS) counters to front-desk check-in/check-out, credit/debit card processing, and third-party and proprietary booking interfaces—each with disparate data, systems, and processes across properties. This results in inaccurate billing, revenue leakages, poor quality of insights, and inefficient offer management and pricing, which hampered the overall growth of the company. A hospitality giant addressed these challenges by using digital and automation effectively to transform revenue operations and master data management, thereby improving process efficiency, turnaround time, revenue growth, and cost savings.

Business challenge

One of the world’s largest hotel companies, which owns, operates, franchises, and manages hotels, resorts, spas, residences, and vacation ownership properties under 11 brands, struggled to achieve true economies of scale due to the fragmented nature of its revenue operations. The data in its system of record — ERP application — was rarely current or accurate due to the multiple legacy systems and manual processes involved in recording sales. As a result, the company’s management had poor insight on sales, overall business performance, or customer behavior. The incoherent revenue operations resulted in inefficiencies, inaccurate billing, and revenue leakage. 

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Genpact solution

The client transformed their revenue operations by leveraging a Lean DigitalSM approach to drive choices that complemented the existing technology environment with advanced digital solutions to generate impact faster. The approach ensured alignment of the front office (front desk and booking points), middle office (revenue analysis to derive insights from data), and back office (master database and ERP system), in order to drive the most value from operations, supporting technology, and data.

The agile methodology and processes helped standardize the revenue capture model and consolidate data into a single source of information. Machine learning and natural language processing (NLP) further helped automate revenue capture and analysis processes, which reduced turnaround time (TAT), manual intervention, data leakage, and inaccuracy to a significant degree.

Unlike many automation efforts—which struggle with complex and underlying processes and workflows, combined with legacy IT architecture— robotic automation (RA) allowed for practical implementation, rapid deployment, and minimum disruption or change to existing systems.

Genpact provided a two-step solution, which involved:

  1. Process standardization: A CoE model, comprising four sub-teams, handled daily revenue reporting, tax reconciliations, bank reconciliations, and audit checklist. The teams challenged the existing process and reduced the levels of reporting significantly, leading to the reduction in manual effort and TAT. Also, reimagined analytics processes across properties enabled early identification of revenue leakages and advance warning to the respective properties for potential losses. Restructured standard operating procedures streamlined data movements between POS, SAP, master database, and banking interfaces. This resulted in accurate and timely reporting, in turn increasing productivity and first-pass yield
  2. Robotic automation: RA, deployed as a SoE over the existing technology, catalyzed the transformation in operations with minimum disruption or change to existing systems. It optimized the underlying processes by defining transactional rule-based steps, analytical or judgment-based steps, and exception-management workflows, which helped maximize the scope of automation while minimizing manual handoffs and the chances of errors. The automation scope included:
    • Tax reconciliations
    • Bank reconciliations
    • Audit checklist
    • Labor productivity reporting

Business impact

Overall, the company reduced manual intervention across the value chain, and shifted its focus from ‘personnel and systems management’ to ‘data-driven decision-making’, which enabled rapid growth. The company is likely to realize annual savings of $350,000, from implementing the solution across all 140 properties. Benefits include:

  • Fueled further growth through cost savings, better insights, more informed decision-making, and reduced revenue leakage
  • 36% improvement in efficiency across the process by significantly reducing manual intervention
  • Standardized and streamlined revenue capture process, resulting in better data management, visibility, and agility
  • Fully automated revenue operations helped the client achieve greater efficiencies, cost savings, and more informed decision-making with minimum manual intervention
  • Scalable solution for 140 properties
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