Revenue Management
Paul van Meerendonk
  • Revenue Management
  • Big Data for Big Pay-Off
  • Big data has been a starting player on the strategic revenue roster for years. In fact, years before big data exploded into something like a phenomenon, hotels were increasingly incorporating industry data into their revenue technologies and strategies. The opportunities afforded through the effective use of big data have grown to such an extent that today’s flourishing hotels must increasingly leverage larger amounts of available data to seize their most lucrative revenue opportunities. Read on...

Lily Mockerman
  • Revenue Management
  • Analytics, the 'Holy Grail' of Revenue Management
  • Analytics continue to be one of the most-discussed topics in the Revenue Management industry and as the backbone of any solid revenue management discipline, this makes sense. With that said, how do we really use analytics, and why is this measurement so important to building a solid revenue management foundation? Perhaps the most obvious answer is that humans – the drivers of revenue management – measure experiences through perception. This may not be intentional, but we are emotional and irrational creatures by nature. Analytics help us take an unbiased approach to our business in more rational and data-driven ways. Simply put, analytics give us the foundation needed to arm hoteliers with the ability to price efficiently and effectively without experiential bias. Read on...

David Lund
  • Revenue Management
  • Do Your Hotel Financial Statements Pass the Test?
  • Do your hotel financial statements give you the information you need to effectively run your business? Do they have an effective summary statement with departmental profits, flow thru analysis, proper room segment statistics, labor productivity, do you have payroll segmented by management and hourly classifications, do you have separate supplemental payroll and benefits, do you track arrivals and departures? Most statements I see do not have most of these critical elements. They’re lacking these incredibly effective elements that can easily be added. How would these elements add insight and value to your business? Let’s explore this Read on...

David Lund
  • Revenue Management
  • Creating Financial Leadership in Your Hotel
  • Hotel forecast magic. The how to vs. the want to. Have you ever wondered why it’s so hard to get the non-financial manages in your hotel to do their forecasts? It’s like pulling teeth, it’s so hard to get the leaders in your hotel to willingly come to the plate. What if you’re asking for their forecasts in the wrong way? Here is what I learned and I want to call myself out on this because it took me 20 years to figure it out. Maybe it will work for you too and you won’t have to waste 20 years. Read on...

Jeff Navach
  • Revenue Management
  • Eliminating Acquisition Costs to Get Heads in Beds
  • What if I told you there was an easy and effective way to bypass the OTAs, reduce fees, and capture audiences you aren’t currently accessing? And I’m not talking about a new idea or outrageous untested concept. I’m simply talking about a change in the way you think about digital marketing. It’s a process that the OTAs have deployed for years that hotel marketers can do every bit as effectively as the OTAs. Hotels continue to confront a familiar problem: How to attract direct bookings and reduce the impact of OTA fees. We all know how profitable it is when bookings come straight through the hotel, but there simply isn’t enough reach to drive the same demand as the OTAs. Read on...

David Hogan
  • Revenue Management
  • Understanding the EMV Fraud Liability Shift
  • Even though it’s been almost 18 months since the U.S. migrated to EMV smart-chip based payment technology, many businesses – for various reasons – are still hesitant to get on board. Many hotel property management system products don’t support EMV acceptance, even though almost 80 percent of credit cards are now issued with smart chips. In fact, credit card issuers prioritized which cards were issued with chips first, which included high-limit international or travel cards – the types of cards being used often in hotels. Without the ability to accept EMV transactions, business owners – including hoteliers like you – are seeing liability shift chargebacks for which there is no defense. Read on...

David Chitlik
  • Revenue Management
  • Tax Assessments Based on Value in Use, or Value in Exchange
  • Regardless of property type, tax assessment valuation would appear simple enough. A generally accepted definition of market value is: The probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. Read on...

Paul van Meerendonk
  • Revenue Management
  • Driving Maximum Profit Through More Direct Bookings
  • Driving Maximum Profit through More Direct Booking: In today’s ultra-competitive hotel environment, every dollar counts. Any competitive edge that translates into a stronger bottom line is sought out, and every piece of hotel business is evaluated to determine its true worth. With rising costs associated with acquiring new guests through third-party platforms, hotels are rightly considering their most effective booking channels and looking to maximize business from owned assets like their own website. Read on...

Bob Mattler
  • Revenue Management
  • Improve Profits With Renovation, Redevelopment and New Construction
  • There is a new innovative way to pay for hospitality construction projects: Property Assessed Clean Energy (PACE) financing. PACE, adopted as enabling legislation in 32 states and with active programs in about half of them, is gaining momentum as a flexible, available and creative tool in which to finance almost any technology that saves energy and/ or water. PACE can take the place of expensive loans or additional owner equity to finance construction projects that can be repaid long term from those very same energy and water savings. This article will explain Property Assessed Clean Energy, who pays for PACE, some common building systems ripe for PACE financing, who is using PACE and why. We’ll take a closer look through some case studies how hospitality developers and owners are already taking advantage of this new economic development tool. Read on...

Bernard Ellis
  • Revenue Management
  • Achieving Total Revenue Management with Your Existing RMS
  • Technology is often blamed for raising the biggest barrier to embracing a “total revenue management” approach. But chances are that you have systems in place that are already up to the task, if only you would set them up to succeed. You may need to make PMS configuration changes and refine certain business practices, but it will be more than worth it. It seems like every time RevPAR growth slows down, as it is now in the US, hoteliers instinctively turn first to investigate their revenue management systems, which surely must have blown a fuse or broken a fan belt or something. Read on...

Paul van Meerendonk
Trevor Stuart-Hill
  • Revenue Management
  • Should We be Concerned About ADR?
  • Reliance on growing ADR to drive RevPAR when occupancy levels plateau isn’t as easy as it sounds. Reactionary pricing moves, whether they be automated or human in origin will undoubtedly result in subpar performance. This article serves as an early warning that now is the time to take action to ensure that you don’t fall victim to your dumbest competitor. Projections for 2017 and beyond by STR, CBRE and PKF all call for anemic occupancy growth at best, notwithstanding record occupancy levels for the U.S. hospitality industry. With Revenue Per Available Room (RevPAR) growth projections at inflationary levels (2.5 – 3.5 percent, or so), it is clear that expectations call for Average Daily Rate (ADR) growth to continue, but will it? Read on...

Tammy Farley
  • Revenue Management
  • Three Game-Changing Hospitality Trends for 2017
  • There is an old adage that says, “The only constant is change.” Although attributed to Heraclitus, a Greek philosopher who lived around 500 B.C., apparently that statement is as true now as it has ever been – perhaps even more so. 2016 has proven to be a year of tumultuous change in the hospitality industry, from the dizzying pace of technological advancements and fluctuating global economies to the introduction and adoption of entire new segments of the business. With rapidly advancing technologies in just about every sector of the industry, hospitality has experienced an exponential transformation over the past several years, dramatically changing the face of one of the world’s oldest occupations. Read on...

Ravneet Bhandari
  • Revenue Management
  • Dynamic Vs. Static Segmentation: Who are Your Real Competitors?
  • Revenue managers spend considerable time observing and reviewing their competitive set. After all, they’ve had historical success looking at the hotels with similar pricing and amenities. It’s been the stalwart approach to decoding the price forecasting puzzle. As an industry, we’ve commonly accepted this is the right way to do things. But be warned, this approach is like looking at a spectacular mountain. Every angle around the mountain looks different to the observer, with each view revealing bite sized pieces of the overall picture. The reader starts with a full-page image, but when seen from another angle, an entirely different picture is revealed. Revenue managers are so busy looking at their competition through a ‘partial’ image, they cannot see the full picture. Read on...

David Chitlik
  • Revenue Management
  • Can Any Hotel Sale Really be Used as a 'Comparable'?
  • A hotel is not the same as a house or a warehouse or an apartment or office building, and assessors often don’t understand why. The hospitality sector is frequently the most challenging part of a jurisdiction’s property tax base. The only way to derive a hotel’s real property value from a purchase price is for an assessor to spend time and energy understanding the adjustments needed to accurately determine what part of that purchase price relates to real property and whether or not it can be used as a sales comparable for other hotels in that jurisdiction. Read on...

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MARCH: Human Resources: Inspiring a Journey of Success

Cara Silletto

Ever wonder what planet your new hires are from? For most, it is called Millennialland. It is my homeland, and it is a whole different world than where Boomers and GenXers were born. So why are your younger workers from this strange land so hard to understand, manage and retain? Why is it that they lack the loyalty of those who came before them? Why do they need so much handholding in the workplace? And where does this tremendous sense of entitlement come from? Allow me to explain. Read on...

Nicole Price

You’re just being politically correct! In America, being politically correct has taken a new meaning and now has a negative connotation. But why? Definitions can help identify the reason. The definition of political correctness is “the avoidance, often considered as taken to extremes, of forms of expression or action that are perceived to exclude, marginalize, or insult groups of people who are socially discriminated against.” In simple terms, political correctness is going to the extreme to avoid insulting socially disadvantaged groups. What could be wrong with that? The issue is not them or the term, it’s us! Read on...

Kimberly Abel-Lanier

Engaging and retaining talented, trained workers is a critical component of success for any business in any sector. When employees are disengaged or turnover is high, organizations face challenges of subpar customer service, high costs, and human resource inefficiencies. Gallup estimates rampant disengagement among employees costs American businesses between $450 billion and $550 billion per year. High turnover also carries exorbitant costs to organizations, averaging approximately 1.5x an employee’s salary for replacement. In the hospitality sector, delivery of impactful customer experiences is strongly connected to employee engagement and satisfaction. Happy, engaged employees can make happy, loyal customers. Currently; however, the hospitality sector suffers higher than average employee turnover. Read on...

Michael Warech

So where will we find the next generation of leaders in the hospitality industry? Like their counterparts in other business sectors, this question remains top-of-mind for those responsible for finding, managing, and developing the talent needed to ensure the vitality of their organizations. While, arguably, not as glamorous as a new guest amenity or as important as a cost-saving innovation, there is nothing more critical than talent to succeed in an increasingly competitive and challenging global business environment. Leveraging the best strategies and tactics related to talent management, succession planning, workforce planning, training and leadership development are, quite possibly, a company’s most critical work. Read on...

Coming Up In The April Online Hotel Business Review




Feature Focus
Guest Service: The Personalized Experience
In the not-too-distant future, when guests arrive at a hotel, they will check themselves in using a kiosk in the lobby, by- passing a stop at the front desk. When they call room service to order food, it will be from a hotel mobile tablet, practically eliminating any contact with friendly service people. Though these inevitable developments will likely result in delivered to their door by a robot. When they visit a restaurant, their orders will be placed and the bill will be paid some staff reduction, there is a silver lining – all the remaining hotel staff can be laser-focused on providing guests with the best possible service available. And for most guests, that means being the beneficiary of a personalized experience from the hotel. According to a recent Yahoo survey, 78 percent of hotel guests expressed a desire for some kind of personalization. They are seeking services that not only make them feel welcomed, but valued, and cause them to feel good about themselves. Hotels must strive to establish an emotional bond with their guests, the kind of bond that creates guest loyalty and brings them back time and again. But providing personalized service is more than knowing your guests by name. It’s leaving a bottle of wine in the room of a couple celebrating their anniversary, or knowing which guest enjoys having a fresh cup of coffee brought to their room as part of a wake-up call. It’s the small, thoughtful, personal gestures that matter most and produce the greatest effect. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.