Real-Life Revenue Management: Happy birthday, Hayden. And well done, Rafa.

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Birthday time. 10 boys, 1 birthday boy, 1 eager sister and her bestie and my most amazing wife....and of course me, the party entertainer. What could go wrong?

Revenue management isn't just about numbers and strategies. RM can manifest in everyday situations, sometimes in the most unexpected ways.

So last week, I experienced a perfect example of this when Hayden turned nine. His birthday party, planned with his sister Rafa, turned into an insightful lesson on strategy, teamwork, and execution.

Rafa ....

Rafa, still ten, enthusiastically took charge of organizing a scavenger hunt for Hayden and his friends. She volunteered btw. Big announcement: I WILL DO IT!

Despite knowing about this task for weeks, she only started planning on the day of the party. In her excitement, she quickly scribbled down the first few clues without much thought or structure, hoping everything would fall into place.

Seeing her struggle, I stepped in to help Rafa transform her tactical chaos into a strategic plan. We sat down together and devised a framework, much like how a revenue manager would approach a complex problem.

Here's how we applied a strategic approach to her scavenger hunt:

1. Defining the Scope: First, we determined the number of participants—two teams of four. This was akin to understanding our market segments.

2. Setting the Framework: We decided on four stations for the hunt. This involved plotting the journey, similar to mapping out customer touchpoints.

3. Strategic Sequencing: The teams would start and finish at the same stations, with two separate stations in the middle. This ensured a balanced flow, much like creating a seamless customer experience.

4. Creating Engagement: At each station, we incorporated riddles leading to the next location. This step was essential in maintaining engagement and interest, akin to keeping customers involved with targeted offers and promotions.

5. Orchestrating the Finale: We aimed to bring both teams to the final station simultaneously. This was a crucial step, ensuring a coordinated effort and shared success, reflecting the ultimate goal of synchronized team performance.

Why did I step in? I wanted to show Rafa the importance of strategic planning and the value of a structured approach. She realized that while spontaneous execution can be exciting, a well-thought-out strategy enhances the overall experience and ensures success.

The real cool stuff though - Rafa thought of the stations, Rafa thought of the riddles, but we used AI to help make those riddles suited for 9 year olds, made sure that our logic was working.

In the world of revenue management, this lesson is invaluable. It underscores the significance of mentorship and coaching in guiding teams to think strategically rather than just tactically and highlights that tools like AI are a must to support us, not to knock us out.

Revenue management is not just about reacting to immediate needs but about anticipating future scenarios and planning accordingly.

By combining strategy with tactical execution, we can optimize outcomes, whether it's in orchestrating a child's birthday party or managing a hotel's revenue.

This real-life scenario hopefully taught Rafa—and reminded me—that strategic thinking, teamwork, and proper execution are the pillars of success, both in life and in business. Something me myself and i forget.

Happy birthday, Hayden. And well done, Rafa. You've shown us that even the simplest events can teach us profound lessons in strategy and teamwork.

Love,

Papa