Revenue Management
Bob Carr
  • Revenue Management
  • Protect Your Hotel From Fees That Needlessly Drive Up the Cost of Accepting Card Payments
  • Accepting credit and debit cards for reservations and room payments is a way of life. However, recently, you may have noticed the mounting cost of these transactions. In fact, you may be paying more for card processing now than you were last month, and lining the pockets of your processor. Many processors take advantage of interchange rate increases from the card brands, which usually happen in April and October, to discreetly improve their own bottom lines at the expense of business owners while unfairly blaming the card brands. Understanding a few key pieces of information about card processing can ensure you're not spending more than you have to ¯ and help you protect your hotel's bottom line. Read on...

Jean Francois Mourier
  • Revenue Management
  • Protecting Your Brand from Discounts: The Real Economic Impact of Losing Rate Discipline
  • The recession ushered in new era of hotel discounting. From free nights to one penny rooms, hotels were literally giving away the house. During a recession, discounting may work to bring in business but today, as the travel market begins to rebound, discounting is not the right pricing strategy. This article will examine the real economic impact of discounting and how discounting can not only eat away at your bottom line (or RevPAR), but also erode your customer base and brand image. The article also offers alternative suggestions on ways to increase RevPAR without the slash-and-burn mentality of deep discounting. Read on...

Mike Kistner
  • Revenue Management
  • Hotel Competitive Intelligence: What is it, Can it Affect Your Revenue Management?
  • Based on the three to five billion transactions Pegasus Solutions is processing each month for more than 95,000 hotel distribution customers worldwide, leisure travelers are regaining confidence. In fact, booking volumes through the alternative distribution systems (ADS), made predominantly by leisure travelers, climbed +13.93% above 2009, +9.13% above 2008, and a staggering +33.83% above 2007 levels. Future booking data in the same channel evidenced positive growth in reservations on the books through mid-2010. That means the bookers for your rooms are there, and continuing to come back. The question becomes, how are you going to get them? The answer is through revenue management driven by actionable competitive intelligenc Read on...

Kristi White
  • Revenue Management
  • Bulls or Bears: Which Pricing Strategy Is Your Hotel Using?
  • Occupancies have stabilized and are recovering around the world. It’s time for ADRs to make the same recovery. No more hibernating with the bears. For those regions still in hibernation, the time to act is now. At best, consumers will accept a 5% increase in rate annually. While that might not seem much, it’s better than a 5% move in the opposite direction. For hoteliers, every day in the foreseeable future should be a run with the bulls—with the same sense of urgency and confidence. Viva San Fermin! Read on...

Stowe Shoemaker
  • Revenue Management
  • Revenue Management and CRM: A Conflict of Strategies?
  • Hospitality managers have paid much attention to the practice of both revenue management and customer loyalty over the last few years. Unfortunately, these managers often come from different departments; and as a result, they often have different goals and different financial targets. For instance, those in marketing are measured by increases in repeat purchase, word of mouth, and satisfaction, while those in revenue management are measured by REVPAR index and yield index. While in an ideal world these goals would be complimentary, this is often not the case. Rather than being a zero sum game, it is a winners take all game, where the win is the incentives that come from reaching specified targets. For example, in one of my executive education classes a sales manager of a large international hotel company told me the following story... Read on...

Juston Parker
  • Revenue Management
  • Outsourcing Revenue Management
  • Revenue Management continues to change rapidly. The days of "right room, right person, right price at right time" have long disappeared. Keeping up with the latest trends and keeping staff well educated is increasingly expensive and difficult. Outsourcing a property's Revenue Management has become a real and viable solution. Revenue Managers also present challenges for a property. What is their role? What does their job consist of? In the industry, most Revenue Managers really are Reservations Managers handling the duties of both jobs. This, of course, takes away their focus from both managing revenues and managing reservations. Not exactly a win-win situation. Read on...

Joshua Miller
  • Revenue Management
  • Prevent Major Losses in Your Minor Operating Departments
  • Most hotel management principles focus on enhancing revenue and improving efficiency. An assumption that many hoteliers make inaccurately is that all of the revenue they earn actually makes it to the P&L. Most hotels experience revenue slippage due to problems with error and theft. In the major divisions, revenue control practices are put in place to safeguard against these issues, but these are rarely seen or enforced in the minor operating departments. This article will focus on revenue control in the non-core focus areas of the hotel and what you can do to improve it. Read on...

APRIL: Guest Service: The Personalized Experience

Shayne Paddock

In the past year I’ve traveled to New York City on several business trips usually staying at the same hotel every time. I did that in part to learn how the hotel would interact with me on each repeat stay. Would they treat me differently? Would they recognize me on my fourth stay? Would they remember my name? Each time the reservation staff warmly greeted me but always asked “Have you stayed with us before”. Upon arriving in my room there would always be a hand written letter from the GM welcoming me to the hotel. Read on...

Adrian Kurre

Today’s hotel guests have embraced the convenience of mobile and digital technology that facilitates everything from booking specific rooms online to checking in and using Digital Key on their smartphones. This proliferation of technology combined with excellent hospitality ensures that guests’ needs continue to be met or exceeded. At the end of the day, like we say at Hilton, we are a business of people serving people. The key is to offer guests the technological innovations they want – and some they haven’t even imagined yet – while utilizing these advances to automate basic transactions. This process allows our Team Members to focus more time on delivering exceptional experiences at every hotel to every guest. Read on...

Robert  Habeeb

There are growing numbers of quasi-service hotels that are carving out a new niche between select-service and full-service properties. Select-service hotels have been a hot hotel industry segment for several years now. From new concepts to new developments, it has established itself as a clear front-runner in the hotel category horse race. That being said, a recent uptick in full service hotel development clearly shows that segment remains vibrant, as well. Read on...

Gary Isenberg

By now, nearly every type of traveler prepping for a journey scans TripAdvisor for reviews of hotels in their destination city prior to securing a reservation. By perusing prior guest comments, consumers receive unfiltered and unbiased perceptions of specific properties. Travelers want to know before they book for instance if: Are the rooms clean? Is the service top-notch? Most importantly, does a hotel deliver value for the price? Read on...

Coming Up In The May Online Hotel Business Review

Feature Focus
Eco-Friendly Practices: The Value of Sustainability
The hotel industry continues to make remarkable progress in implementing sustainability policies and procedures in their properties throughout the world. As a result, they continue to reap the benefits of increased profitability, enhanced guest experiences, and improved community relations. In addition, as industry standards are codified and adopted worldwide, hotels can now compare how their operations measure up against their competitors in terms of sustainable practices and accomplishments. This capacity to publicly compare and contrast is spurring competition and driving innovation as hotels do not wish to be left behind in this area. Water management and conservation is still a primary issue as population growth, urbanization, pollution and wasteful consumption patterns place increasing demands on freshwater supply. Water recycling; installing low-flow fixtures; using digital sensors to control water usage; and even harvesting rainwater are just a few things that some hotels are doing to preserve this precious resource. Waste management is another major concern. Through policies of reduce, reuse and recycle, some hotels are implementing “zero-waste” programs with the goal of substantially reducing their landfill waste which produces carbon dioxide and methane gases. Other hotels have established comprehensive training programs that reinforce the value of sustainability. There is employee engagement through posters and quizzes, and even contests are held to increase innovation, sensitivity and environmental awareness. Some hotels are also monitoring a guest’s energy usage and rewarding those who consumed less energy with gifts and incentives. The May issue of the Hotel Business Review will document how some hotels are integrating eco-friendly practices into their operations and how they and the environment are benefiting from them.