Exclusive Interview | Kammelh Kishoree Founder & Managing Director of RedSky Hopsitality

Our guiding principles have always been to focus on quality rather than quantity and conduct business ethically and honestly.

Mr. Kammelh Kishoree MD, Founder

When and What inspired you to start Red Sky Hospitality, and how does the company aim to address the unique revenue management needs of Indian hotels?

I moved to India in 2009 and started working as the Corporate Head of Revenue Management and Distribution for a Luxury Hotel Chain in India. After working for 2 years, I decided not to work for any hotel company in India and to start something of my own. Revenue Management is the only thing I am good at, so I gave it a shot and started a Hotel Revenue Management Support company. Everyone discouraged me, saying hotel owners in India would never agree to share confidential data with me. I gave myself 2 months to see if this would work. I started the company under RevMutu in 2012, and I was lucky to receive a very good response from hotels. Hotel owners saw a significant growth in revenues through electronic channels. We did not do any business development or sales for the last 10 years; still, our business grew significantly through references and good words from our clients.

In the Indian market, we noticed that the front office and reservation teams often manage price points and electronic channels. These employees have not undergone proper revenue management or analytics training. Revenue management in India is often done based on gut feeling rather than data analytics. We saw an opportunity to apply proper revenue analytics and turn them into actionable insights to generate revenues the right way.

(CAN YOU PLEASE ELABORATE HOW THIS PROCESS IS DONE IN A VERY SIMPLE WAY)

Red Sky Hospitality has always been working towards bringing quality to revenue management practices, and at the same time, we believe in trying new, unconventional ways to generate revenue. 

Tell us something about yourself and How this started?

I always wanted to become a commercial airline pilot, but due to a lack of funds, I couldn't pursue that dream. Instead, I joined IHM Pusa, Delhi for a 3-year Hotel Management course and was more interested in Front Office than Kitchen and F&B. While studying, I started my first business called "Elegant Caterers." It was a part-time business that gave me experience in dealing with clients, time management, organizational skills, and financial management. After successfully completing my 3-year Hotel Management course, I had the opportunity to travel to the United Kingdom.

Starting my career was a bit challenging, but I was determined to grow. I began as a receptionist in a 617-room Heathrow Airport hotel. At the same time, I was working with KFC in the evening. Within 6 months, I was promoted to Front Office Supervisor, and within another 2 months, I became an Assistant Front Office Manager. I was eventually pushed into Revenue Management, although I had no prior experience in it. My bosses at IHG were very supportive and provided training. I had a two-month timeline to learn revenue management practices and apply them in real business.

Impressed by my performance, I was asked to take care of two key properties in the IHG Portfolio: Crowne Plaza Heathrow and Holiday Inn Heathrow. During my tenure, I completed my Revenue Management Degree and Honors course organized by IHG. I was then invited to join the Revenue Development and Training Team, where we supported over 650 hotels in Europe, the Middle East, and Africa in terms of system installations, revenue management training, system training, and revenue audits.

I eventually moved to India and joined The Lalit Suri Hospitality Group as Corporate Head of Revenue Management and Distribution. I launched the Central Reservation Office for the group and had the opportunity to use my knowledge and skills to grow the electronic share of the company. I made various changes and launched new initiatives in India, such as "Stay More, Save More" and "Last-Minute Deals" back in 2009-10 to capture market share. The CMD and directors at The Lalit were very supportive and gave me the freedom to perform. After working for 2 years in India, I decided to start something of my own and founded RevMutu, which is now rebranded as Red Sky Hospitality. We were the first company to launch revenue management support for hotels in India in 2012.

During the COVID-19 pandemic, we developed a software called Precium, which recommends hotel room price points using various algorithms and machine learning. We are further enhancing the system for accurate forecasting and other functionalities to support revenue managers and hotel owners in making the right business decisions. In 2022, I signed a Global Preferred Partnership agreement with Sabre Hospitality. We are now the official resellers and Level 1 support providers for three continents: Asia, the Middle East, and Africa.

I have a fantastic team that has supported me during both challenging and successful times. I credit my team for our achievements. Our guiding principles have always been to focus on quality rather than quantity and conduct business ethically and honestly.

Could you provide an overview of the challenges that hotels in India face when it comes to revenue management?

Currently, the biggest challenge faced by the Hospitality Industry in India and Globally is ‘Skilled Staff’ with the right attitude. Revenue Managers are switching jobs very frequently. This is where RedSKY Hospitality comes in and supports hotels without any break in between. Revenue Managers going on Holidays, Sickness, leaving jobs – we take care of it and don’t let the Revenue gaps come in. The other challenge faced by hotels in Revenue Management is technology. There are many options available in the market in terms of Automated Revenue Management (ARM) software and other data reports to support decision making, however, does the hotel have the right Skilled and Knowledgeable Revenue manager to manage the Automated Revenue Management Software. Automation does not mean the software will do everything for you. Revenue Management has many sections and ARM will only take care of some sections. We developed PRECIUM keeping in mind the lack of skilled Revenue Managers. Precium is easy to set up and easy to use. Precium is always there to support hotels with right Pricing decision making. There are many other challenges which we come across on a daily basis – Systems not integrated resulting in inaccurate inventory management, inaccurate data resulting in inaccurate decisions, Rate Disparities, etc. RedSKY Revenue Management experts fix all the challenges to ensure a smooth long-term growth of the business. 

In what ways does RedSKY Hospitality leverage technology and data analysis to optimize revenue strategies for its hotel partners?

We have developed our own Revenue Management software – PRECIUM, which is easy to use and does not overburden the Revenue Managers. We work with over 6000 Rooms inventory, and it’s all taken care of and managed by PRECIUM. Our software has Pricing recommendation accuracy of over 95%. We are adding new features & functionalities in PRECIUM, and it will be launched in the market soon. Currently, it's used by our clients only. We also use various third-party reports to get data analytics for accurate decision making – Like Rate shopping, STR, Agency360 etc. We are also working on building our own Rate Shopping Tool which will give real time Competitor online Rates. Market Intelligence is very important for a Revenue Manager, and we are working towards getting the right market intelligence to grow Revenues for our Clients.  

We have developed our own Revenue Management software, Precium, which is user-friendly and doesn't overburden revenue managers. We work with over 6,000 room inventories, all managed by Precium. Our software has a pricing recommendation accuracy of over 95%. We are continually adding new features and functionalities to Precium, which will soon be available in the market, as it's currently used exclusively by our clients. In addition to Precium, we use various third-party reports to obtain data analytics for accurate decision-making– Like Rate shopping, STR, Agency360 etc. We are also working on building our own Rate Shopping Tool to provide real-time competitor online rates, ensuring that our revenue managers have access to the right market intelligence to grow our clients' revenues.

Can you elaborate on the specific services or solutions that RedSKY Hospitality offers to assist hotels in maximizing their revenue potential?

We offer remote Revenue Management support to hotels worldwide. Apart from this, we conduct audits to highlight opportunities and gaps with recommendations on how to improve revenues and stop revenue leakages. We also offer Revenue Management training. As global preferred partners with Sabre Hospitality, we provide GDS connectivity and the world's best booking engine, Synxis. We are preparing to launch Precium, our Revenue Management software, and a Rate Shopping Tool very soon.

How does RedSKY Hospitality adapt its revenue management strategies to the dynamic and ever-changing hospitality industry in India?

Revenue Management is all about understanding the behavior of the market and, more importantly, understanding the behavior of the property. Any changes in market trends or property behavior are identified by our Revenue Managers through various market intelligence reports available to us. We work on both short-term and long-term strategies. Red Sky Hospitality is always ready to launch and try out new strategies to grow profitability for our partners, with a focus on accurate forecasting.

What kind of data-driven insights does RedSKY Hospitality provide to its hotel clients, and how do these insights contribute to improved revenue outcomes?

We look at the daily pace by day of the week to understand the behavior of each day. We conduct price elasticity tests to determine the right price point for the hotel to strike the balance between occupancy and ADR (Average Daily Rate) for optimum revenue and profitability. We closely study the market and the competition to understand their behavior and act accordingly to grow our clients' revenue contribution. Our data-driven insights include a deep analysis of market behavior, segment-specific strategies, and pricing recommendations to maximize overall revenue for the property.

Are there any notable success stories or case studies that highlight how RedSKY Hospitality has helped hotels achieve significant revenue growth through its services?

There are many case studies that showcase our success. We believe in thinking outside the box and implementing unconventional revenue management strategies. Our success is evident through the fact that the majority of our clients have been working with us since 2013. We work closely with our clients, offering flexibility to our Revenue Managers to try new approaches to increase profitability. We focus on optimizing every market segment to achieve the best overall revenue for the property. While we have delivered impressive electronic channel contributions to our clients, our primary goal is to ensure the overall growth and profitability of the business.

We are generating over 50,000 room nights with a revenue of over $4.2 million USD (INR 35 Cr) every month from electronic channels for our clients. We delivered over 30% electronic channel contribution to hotels in Kenya, increasing it from 12% contribution. Our hotel partners in North India deliver 45% contribution from the electronic channel with the highest contribution from Brand Website. Our hotel partners in Goa are enjoying high occupancies at a good ADR during low demand as well. 

But we do not measure our performance with electronic channel contribution. We are a Revenue management company and not an electronic channel management company. Our focus is how to optimize every market segment to get the best overall revenue for the property. We get involved with the budgeting process and do weekly and monthly forecasting to ensure the right strategy by market segment is implemented to get the best results. 

With the evolving landscape of guest preferences and online booking platforms, how does RedSKY Hospitality ensure that its revenue management strategies remain effective and relevant?

The fundamentals of Revenue Management remain consistent, but the strategies and actions may change. To apply accurate strategies and make the right decisions, revenue managers need precise data and the knowledge to convert that data into actionable insights. There are both short-term and long-term strategies. Long-term strategies typically remain consistent unless significant external factors come into play, while short-term strategies change more frequently in response to market trends and demand fluctuations.

Revenue Management is very dynamic and adjustments in short term strategies, if applied correctly, will result in Revenue and Profitability maximization. In RedSKY, apart from on job training, we conduct training sessions every Saturday to keep our team up to date with the latest trends and new strategies to be tested to see the results. We have many data sources and a large data bank to make the right decision for our partners. With technology evolving, new data sources coming up and a creative Revenue Team, we are always ready to launch and try out new strategies to grow profitability for our partners. 

Could you shed light on the expertise and experience of your team in both the hospitality and revenue management domains, and how it sets RedSKY Hospitality apart in the market?

Our team possesses a combined experience of over 75 years in Revenue Management. We have structured our team to ensure that the latest trends and information are disseminated effectively. We have instilled a culture of "Quality over Quantity" in our team. Arfa Samad, our Director of Revenue, has over four years of Revenue Management experience working with international and Indian luxury brands. Her passion for Revenue Management makes a significant difference.

We believe strongly in ongoing training and team-building activities to maintain a positive working environment within the company. What sets us apart in the market is that we are a Revenue Management Company, not just an OTA (Online Travel Agency) or Channel Management Company. We are guided by strong ethics:

1. We do not sign up with competitor hotels.

2. Honesty and integrity.

3. Data confidentiality.

We have developed our own Revenue Management Software, Precium, to provide our team and clients with accurate data analytics for making informed decisions. We are also working on various other platforms to support the Indian hotel industry. Forecasting is a critical part of Revenue Management, and we are enhancing the accuracy of forecasting to support hotels in making the right decisions regarding pricing and yield management.

Looking ahead, what are RedSKY Hospitality's future plans or innovations in the realm of revenue management, particularly in relation to the Indian hospitality industry?

We are currently working on building an integrated AI tool and data analytics platform to support hotels in making the right decisions. Given the shortage of skilled Revenue Managers in our industry, especially in India and the inability of smaller and standalone hotels not being able  to afford expensive Revenue management software. We aim to provide efficient, easy-to-use, and reasonably priced software to support the hospitality sector. In 2022, we signed a Global Preferred Partnership with Sabre Hospitality. We are working together to provide the best technology to the hospitality industry.

Current scenario and top topics that can be pitched as prospective story angles where you can share your expertise.

In the current scenario, the shortage of skilled Revenue Managers is a significant issue in India and globally. We are working towards training Revenue Managers to address this challenge. Other prevalent topics in the industry include the adoption of RevPAR (Revenue per Available Room) strategies and the need for accurate forecasting to support decision-making.

RevPAR strategy concept is still not accepted entirely by the Indian hotel industry. For RevPAR strategy to work effectively, forecasting by market segment accuracy needs to be worked on. RedSKY Hospitality is working towards delivering forecasting accuracy to within limits of 2%.

About your clients - number of clients, and top-end names which should be talked about.

We are currently supporting over 100 properties globally, with a room inventory of over 6,500 rooms. We provide remote Revenue Management support to hotels across India, Africa, Australia, New Zealand, Thailand, and more. We also provide Revenue audits and consultancy to large luxury hotel groups in Australia. We collaborate with prominent Indian hotel chains like Kamat Hotels Group, VITS Hotels Group, and some high-end international brands. Most of our clients have been working with us for over 10 years and continue to do so.

Company culture, how do you make it a better place to work? Initiatives taken to create an inclusive culture.

At RedSKY, our culture revolves around inclusivity and diversity. We foster a RedSKY family where gender, gender identity, and physical abilities are never barriers to being valued team members. Inclusion is a core principle for us, not just a buzzword; it's a core principle we live by.

Our commitment to an open and approachable environment is evident through our open-door policy. We encourage our staff to communicate freely, knowing that their voices are heard and valued.
We believe in recognizing and celebrating our staff's hard work and dedication. That's why we have a practice of regularly appreciating and rewarding our team members. Our annual Employee Appreciation Week is a testament to this commitment. It's an entire week dedicated to celebrating our staff, with each day filled with unique activities and surprises to make them feel truly special.

"Fun Saturday" is another highlight of our culture, blending learning with enjoyable activities. We believe in fostering personal and professional growth in a fun and engaging manner.

We also celebrate our collective achievements with enthusiasm. When the company achieves any milestone, we all celebrate together. Team evening dinners and parties are organized to express our appreciation for the collective effort that brings success to RedSKY.

What kind of talent are you looking to hire currently?

We are actively seeking individuals who are driven by dedication and a strong desire to learn and grow. At RedSKY, we believe in providing opportunities to a diverse range of candidates, including fresh graduates looking to kickstart their careers and experienced professionals eager to broaden their horizons. We are looking for people who are passionate about learning and growing in their careers, with a positive attitude. 

Our doors are wide open to everyone, regardless of gender, gender identity, sexual orientation, or physical abilities. We are committed to creating an inclusive and supportive work environment where every individual’s unique perspective and talent are valued and celebrated.

What are the most important and exciting things about your company and this field for those who are looking for jobs in this sector?

At RedSKY, we believe in the power of passion, dedication, and a thirst for learning. Our commitment to excellence in the hospitality sector extends beyond our services; it's about investing in people who are eager to grow and make a difference. We empower those who are looking to learn and grow, whether they are experienced professionals looking to expand their horizons or fresh hotel management graduates eager to kickstart their careers.

Our core philosophy is to foster talent from the ground up. We have a robust policy in place to welcome freshers and experienced people into our family, offering comprehensive training and mentorship programs designed to transform them into a proficient revenue management experts. 

At RedSKY, our commitment to nurturing talent goes beyond traditional boundaries. We take pride in cultivating our own talent pool and grooming our staff into skilled and professional Senior Managers. Rather than seeking talent externally for a senior position, we firmly believe in offering growth opportunities to our dedicated internal team members.

Our innovative programs, such as "Become a Leader," are designed to identify and nurture the leadership potential within our staff. Through comprehensive training and development, we prepare them to take the command and lead their teams to success.

Additionally, our "Train the Trainer" initiative focuses on elevating our existing leaders to new heights of excellence. By honing their skills and empowering them with the tools to mentor and guide others, we foster a culture of continuous improvement. We recognize and appreciate our staff's contributions, motivating them to excel in their roles. Red Sky is a place where talent is nurtured and transformed into future leaders, and dedication is rewarded with appreciation and growth opportunities.

We can say RedSKY is a place where talent is not just nurtured; it's transformed into future leaders, and dedication is rewarded with appreciation and growth opportunities.

We are pioneers of Revenue Management remote solutions in India and were the first company to introduce this service in 2012. While there are now over 100 companies offering similar services, we continue to be the best and most preferred Revenue Management company in India. What sets us apart is our approach: we provide recommendations to hotel owners on how to grow revenues and profitability rather than simply executing instructions. Our core ethics include not signing up competitor hotels, maintaining honesty and integrity, and ensuring data confidentiality.

About Company

RedSKY Hospitality, a pioneering force in the field of revenue management in India, emerged from the vision of its founder, Kammelh Kishoree, who recognized the need for specialized revenue management support in the country's burgeoning hospitality industry. Established in 2012, under the name RevMutu and later rebranded as RedSKY Hospitality, the company has carved a distinctive path by offering comprehensive revenue management services to hotels. RedSKY stands apart through its ethical approach, focusing on quality over quantity, and delivering not just instructions but data-driven recommendations to help hotel owners optimize their revenue potential. With a team boasting over 75 years of combined revenue management expertise, RedSKY is committed to addressing the challenges faced by the industry, such as the shortage of skilled revenue managers and the need for advanced technology - all while maintaining a culture of inclusivity and diversity. As a trusted partner to over 100 hospitality brands globally, including renowned brands such as Kamat Hotels Group and VITS Hotels Group, RedSKY Hospitality continues to innovate, with plans for advanced AI tools and data analytics that are revolutionizing revenue management in the Indian hospitality sector.