Revenue Management
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. Itís 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, itís better than a 5% move in the opposite direction. For hoteliers, every day in the foreseeable future should be a run with the bullsówith 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...

MARCH: Human Resources: Inspiring a Journey of Success

Sandy Asch

Baby boomers, Gen Xers, and especially Millennials, who now make up more than 50 percent of the workforce, want a sense of purpose at work. Itís clear that todayís workforce is increasingly concerned with doing good. People are tired of just showing up every day to perform a job. They want lasting fulfillment at home and at work. In his book, Drive, Daniel H. Pink suggests that we are in a time where individual desire to have a positive impact in the world often ranks higher than pay scale when selecting a job. Millennials, in particular, want to feel like their work has real purpose, and they want to be home for dinner. Read on...

Whitney Martin

As new properties explode on the scene and traveler choices abound, hotels know they have to pull out all the stops to make every guest experience a positive one. Are staff friendly are courteous? Are rooms clean? Are meals excellent? Are bills accurate? We rely on our employees to execute their jobs, not just correctly, but with enthusiasm. And, if they donít, business suffers. We do our best to hire good people (in a competitive market), we give them a little training, and then we HOPE they create raving fans. Ever heard the expression ďhope is not a strategyĒ? Read on...

Joyce Gioia

Worldwide, the hospitality industry is going through a transformation. In response to workforce shortages, many employers have looked for---and found---ways to reduce staff by using automation. Despite this trend, there are continuing shortages of skilled workers from front line housekeepers to general managers. Hospitality leaders are looking for and finding innovative ways to find the talent. This article will give you an overview of whatís working for general managers and their human resource professionals to find the people they need to staff their properties. Read on...

Paul Feeney

A recent report from the U.S. Bureau of Labor Statistics, showed that close to 3 million people voluntarily quit their jobs a couple of years ago, a 17% increase from the previous year, proving that opportunities for employees are abundant and we have shifted back to a candidate-driven marketplace. Why is this important? Employee retention should always be of utmost importance, but requires awareness as to why employees leave to begin with. Numerous statistics show that the #1 reason people quit their jobs is a disconnect or poor relationship with their boss or immediate supervisor or manager. This shows that turnover of staff is mostly a manager issue. 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 Ė 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. Itís 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. Itís 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.