Revenue Management
Connie Rheams
  • Revenue Management
  • Tightening Operations Can Increase RevPAR
  • Recent "commoditization" of the hospitality industry has encouraged companies to compete on price, and achieving differentiation through service has required higher investment (higher quality, shorter operation cycles), reducing overall profitability. Every year, surveys are conducted that clearly outline companies' need to reduce costs and increase operational efficiencies. Many companies have already made great headway in accomplishing this goal by reducing complexity, implementing best practices and leveraging best-of-breed technologies. While the hotel industry has experienced strong revenue growth over the past few years, however, bottom-line performance has eroded since 2000, due to escalating expenses, including "non-controllable" costs such as utilities, insurance and government regulation. These costs - along with "controllable" costs such as payroll, staffing and marketing - are expected to only increase in the years to come. Read on...

Connie Rheams
  • Revenue Management
  • Our Occupancy Is Up: Are Profits?
  • It may seem counter-intuitive, but just because hotel occupancy rates are up, does not necessarily mean that profits are. Increasing the bottom line may require a new way of thinking. Many hospitality industry executives instinctively feel that technology is both a blessing and a curse. Yes, technology increases productivity and enables new ways of communicating with customers, but it also creates new challenges as distribution channels emerge, and new headaches when the technology doesn't work the way it's supposed to - which seems to happen all too frequently. Read on...

Juston Parker
  • Revenue Management
  • When to Book? Looking at Guest Patterns
  • When does a guest book? The answer most give is, "when they want to stay". The truth of the matter is they book when the time is right for them. Traditional marketing gets all the information in front of the guest and hopes that when the gust books they choose you! This shotgun approach leaves many properties unable to track true conversion on their efforts and wasting money on trying to get guests that never stay. By looking at true patterns, one can put the value product in front of the ideal guest at they time they are interested in booking, thereby creating an easy environment for the guest to book. In addition, since this guest is getting what they want, not only is conversion higher, but the ADR is as well. So, how do you know when is the right time to get before your guest? The key is micro-segmentation of the guest profiles and searching out what they value. Read on...

Juston Parker
  • Revenue Management
  • Short Term Action Plans
  • Revenue Optimization as most know has drastically changed over the past few years and is still constantly changing. How people shop and where they get their information changes on a day by day basis. The old adage of "right room, right person, right price" is no longer applicable and a successful property has all bases covered from demand and content management. As the world of Travel 2.0 grows, the traveler is getting smarter and access to more and more tools they may not have had in the past. Sites such as www.gusto.com have made the traveler the one in control. With real time access to like-minded people, the new Web 2.0 allows the potential guest to see what they really want to know about the destination they are going to and this includes value. As the adage goes, price is what you pay for something and value is what you get. Read on...

Juston Parker
  • Revenue Management
  • Proactive Revenue Management (Optimization)
  • As we go through the throws of the budget and planning season, people consistently wonder how does one look into the future to get more accurate budgetary planning and get good data for revenue strategies. Now, is always a good time to start planning. There is one fundamental difference between Revenue Management and Revenue Optimization, the former is passive and the latter is active. More than that, it's proactive. Revenue Optimization looks into the future and builds a plan to effectively create revenue and harness demand to fully return the best revenues possible. This is the goal of all who do Revenue Management (Optimization). So, what are the keys to proactive Revenue Management? What can move a property from Revenue Management to Revenue Optimization? Let's look at the process and learn how to maximize our return. Read on...

Max Starkov
  • Revenue Management
  • In Search of the Internet Intelligence Report That Makes Sense
  • With more and more revenues in hospitality being generated from the Internet, predictions over the next three years from now will see the Internet contributing over 20% of all hotel bookings and convincingly surpassing total GDS bookings. With such an industrial shift toward the web, hoteliers need intelligence tools to measure performance against its competitive set on direct and indirect channels outside of the GDS. Hoteliers are in search of Internet intelligence reports that make sense. Here's what sales & marketing, and revenue managers should be asking in order to competently formulate their online pricing and inventory control strategy... Read on...

Jose Acosta
  • Revenue Management
  • Ten Tips for Hotel Owners and Operators to Survive the Recession
  • Although nobody can predict exactly when the economy is going to rebound nor when hotel prices and occupancies will return to previously desired levels, it is probable that there will continue to be a decline in corporate executive retreats to luxury resorts, annual board meetings, corporate sales incentive trips, and annual holiday parties over the coming year. In fact, one can only wonder about the extent of recovery for specific markets such as luxury, as well as whether there will be a recovery at all for the condo-hotel market. Having said that, it is important to pay attention to the items that will help maintain profitability by focusing on what I think are the top ten key recession survival best practices. Read on...

Juston Parker
  • Revenue Management
  • GOPPAR (Gross Operating Profit Per Available Room) - Best Measurement of Success
  • Revenue Management continues to change rapidly. The days of "right room, right person, right price at right time" have long disappeared. So how do you really measure success at the property? Now-a-days, the margins are getting ever closer and with more and more rooms being sold at net or wholesale rates, it's ever so important that properties look beyond the top line and see how their bottom line is effected by the decisions they make. GOPPAR, or Gross Operating Profit Per Available Room solves that need and gives a valuable look at how a property is truly performing. Read on...

Joshua Miller
  • Revenue Management
  • The Link Between What You Earn and What You Keep
  • Hospitality managers work hard through many different efforts to generate revenue for the property at all levels. Many are surprised to find thatheir success at this process does not always fully make it to the bottom line. The "leakage" is caused by many reasons, but most often by error and theft. Every hotel experiences these issues in some degree, impacting bottom line EBIDTA anywhere from 1% to as much as 10% or more. In this article, we discuss some areas which are at risk and how establishing an effective revenue control system can prevent them. Read on...

Bob Carr
  • Revenue Management
  • All You Need to Know About “Junk” Fees, Statements and Selecting a Processor
  • Processing payments is a huge expense, but there are three key things you can do to gain control of that expense. First, identify the "junk" fees many card processors charge so you can protect against them and save money. Next, learn how to better understand your statements, and ask your processor, accountant or a competing processor to explain any fees you don't understand. Finally, select a payments processor who will become a partner that can help you navigate the complexities of card processing and control the associated costs. Read on...

Robert Gilbert
  • Revenue Management
  • Key Points in Revenue Management in a Down Economy
  • Like housing prices, there seemed no end in sight for maximized hotel rates, spurred by ever-increasing demand. But the economy moves in cycles. Every peak overlooks a valley. And so it is in the hospitality industry. However, many managers never have encountered low demand or zero growth. What can they do maintain revenue? There are a number of strategies that properties can use to maximize revenue during the downturn. Robert A. Gilbert, president and CEO of the Hospitality Sales & Marketing Association International (HSMAI), outlines advice for revenue managers. Read on...

Paul van Meerendonk
  • Revenue Management
  • The Brain Drain: How to Make the Most of, and Protect Your Intellectual Capital.
  • As the wider hospitality industry continues to face a prolonged period of economic uncertainty, hotels should be looking inwards during this time with a view to protecting and making the most out of their intellectual capital. Whilst many organizations are wisely using this current economic downturn to adequately plan for the future through improved levels of staff investment, many others are not heeding the warning signs and are instead shedding costs wherever possible. Read on...

Jean Francois Mourier
  • Revenue Management
  • Nine Hotel Revenue Management Trends for the New Year
  • The hospitality industry's crystal ball is, unfortunately, just as cloudy this year as it was this time last year. Though we can perhaps take comfort in the fact that those clouds are just grey instead of black and stormy, uncertainty is still the only thing that is certain for the hotel and lodging industry in general. Even with positive GDP last quarter (indicating that the recession is technically ending), hotels, resorts and other lodging properties are still experiencing depressed demand, low average daily rates and stagnant occupancy. In other words, low RevPAR. No one can know for certain whether these negative trends will persist through 2010 but following are my thoughts and projections for what 2010 has in store for the hotel industry. Read on...

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...

AUGUST: Food & Beverage: Multiplicity and Diversity are Key

Paul Hancock

Vegetables are no longer served as garnishes or accompaniments but, center stage in the dining scene in this day. Plate design and bold flavors are more paramount than ever. The “wow” effect is in full effect. Guests are more eager to try something new more than ever before. It is entertainment, so it has to be great and throughout the dining experience. There is a cultural shift happening right in front of our eyes with vegetables. Vegetables have been the unsung heroes of the plate for many decades. That is changing. Read on...

Robert  Hood

What does a restaurant look like in 2017? To define what a restaurant is is a difficult process and not an easy thing to do considering that foodservice has evolved so much and comes in so many shapes and sizes. In 2017 restaurants are not even defined for having chairs or tables for diners or even want diners to stay after the point of food purchase and the sale is completed. This is the world of the ‘QSR’ or ‘Quick Service Restaurant’ and since it arrived it has changed restaurant culture, our food service experiences on an almost daily basis, and begs the question ‘is QSR the new fine dining?’ Read on...

Chris Ferrier

Many hotels are overwhelmed by the thought of putting together a ‘buy local’ or ‘farm-to-table’ culinary program when they also have to serve many guests. Where do you start? Should chefs contact all the local farms, breweries, wineries, fish mongers, meat and poultry farms in their area? Should they visit each farm? Many years ago, this was what we did; but with 1,200 meals to prepare, often we would clear out the farmers’ goods and still not have enough for what we needed. Read on...

Bobby Martyna

A key trend in hotel development is making the hotel lobby a destination for guests. Where in the past, the focus was primarily on the guest room, moving forward, brands and independents are looking to transform the lobby into a space where guests can socialize, work, snack and dine. In order for the lobby destination to be both compelling and memorable, the retail design, visual merchandising and food selection need to convey what is special about the location and must work together to deliver a surpassing guest experience. Read on...

Coming Up In The September Online Hotel Business Review




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Feature Focus
Hotel Group Meetings: Blue Skies Ahead
After a decade of sacrifice and struggle, it seems that hotels and meeting planners have every reason to be optimistic about the group meeting business going forward. By every industry benchmark and measure, 2017 is shaping up to be a record year, which means more meetings in more locations for more attendees. And though no one in the industry is complaining about this rosy outlook, the strong demand is increasing competition among meeting planners across the board – for the most desirable locations, for the best hotels, for the most creative experiences, for the most talented chefs, and for the best technology available. Because of this robust demand, hotels are in the driver’s seat and they are flexing their collective muscles. Even though over 100,000 new rooms were added last year, hotel rates are expected to rise by a minimum of 4.0%, and they are also charging fees on amenities that were often gratis in the past. In addition, hotels are offering shorter lead times on booking commitments, forcing planners to sign contracts earlier than in past years. Planners are having to work more quickly and to commit farther in advance to secure key properties. Planners are also having to meet increased attendee expectations. They no longer are content with a trade show and a few dinners; they want an experience. Planners need to find ways to create a meaningful experience to ensure that attendees walk away with an impactful memory. This kind of experiential learning can generate a deeper emotional connection, which can ultimately result in increased brand recognition, client retention, and incremental sales. The September Hotel Business Review will examine issues relevant to group business and will report on what some hotels are doing to promote this sector of their operations.