Revenue Management
Paul van Meerendonk
  • Revenue Management
  • Assessing the Performance of Your Revenue Performance Initiatives
  • While revenue management professionals devote significant investments and efforts towards advancing their hotel’s revenue resources, many hotels still struggle with assessing the actual performance of these revenue management initiatives. Namely, how can hotels ensure they are squeezing all the juice out of the proverbial revenue management orange? The hospitality industry has been using revenue management successfully for decades. However, for many organizations, the greatest revenue management challenge is not necessarily of a technical nature, but often organizational. Confronting hotels today is an essential need to align their people, processes and technologies around achieving maximum revenue performance. Read on...

Boaz Ashbel
  • Revenue Management
  • Miami's Hotel Industry in Growth Mode
  • Miami continues its transformation from beach destination to world class city, giving travelers a much wider range of lodging options. With close to 5,000 additional hotel rooms being delivered by the end of this year, Miami is experiencing a very active and strong hospitality market. This includes the entrance of international hotel brands and new concepts being introduced by the leading hotel groups. While the region’s visitor count continues to reach record-setting numbers, critics have voiced concerns that the market could experience oversupply, which coupled with other threats the hospitality market faces today, could have a negative long-term impact. Read on...

Paul van Meerendonk
  • Revenue Management
  • A Day in the Life of Two Revenue Managers
  • Recent discussions have been swirling around the revenue management industry and its swift evolution over the past few years, moving steadily past merely filling as many rooms as possible to holistically approaching the quest for achieving total revenue performance. However, approaches and technologies have not been the only revenue management components swept up in these influential winds of change. The lives of hotel revenue managers have also experienced drastic changes in not only their job responsibilities, but in their overall work efficiencies, insights and performance. Read on...

Bhanu Chopra
  • Revenue Management
  • How Room Prices and Sleep Quality Are Interrelated
  • The scent of fresh sheets in a tidy hotel room can win any heart! Travelers unanimously agree that a ‘hotel stay’ should be nothing less than a rich and pampering experience; and they further justify the statement by saying that prices are paid immediately, as quoted online. In order to pay the guests due respect, hospitality chains claim that they change or improve their services as and when an insurgency crops up. So, the single biggest truth of the hotel industry is that ‘sleep quality’ drives this segment. Believe it or not, this catch phrase has materialized into a key measure of health and productivity in the global public consciousness. Read on...

Anthony Clervi
  • Revenue Management
  • How Hotels Can Win the Supply Chain Game
  • Managing supply chain and procurement is one of the best ways a hotelier can increase profits and minimize losses, but it’s tough to do it well. A hotel must manage hundreds of SKUs. With so many products to buy, it’s challenging to find the best sources. Hotel procurement is further complicated by fragmented operations. Bring together franchisees, owner-operators, and multiple brands under one umbrella, and it can be impossible to keep up with procurement. Without centralized processes, managers and operators are more likely to make multiple small-scale purchases from numerous suppliers, making it difficult for corporate officers to ensure hotels purchase high-quality items at the best prices. Read on...

S. Lakshmi Narasimhan
  • Revenue Management
  • Banquet Operations Vs Real Estate Space
  • Almost every banquet operation in recent times in its key performance indicators carries out a measurement of revenue and profit per square foot of banquet space. Why is this? Given that highest and best use has become the primary motivation for managing an asset including banquet spaces, the metrics for measuring performance have also shifted dramatically. No more, is it just revenue dollars less cost dollars resulting in a profit. It is now a matter of leveraging every square foot of space and its worth to earn revenues and profits. You could say that the owners and stake holders are now looking at every foot of space for returns. Read on...

Jim Sprigg
  • Revenue Management
  • Using Econometrics to Accurately Measure Share-of-Wallet and Improve Customer Strategy
  • The rise of big data in an increasingly complex digital economy has economists and marketers constantly expanding what we want to know about individuals so that we can better analyze and target them with messages and offers. Yet, despite a rapid expansion in the types of customer data being offered by data vendors, the ability to know a customer’s share-of-wallet remains just as desirable, and elusive, today as ever. Amidst the promises of big data, one company in the travel industry has found that traditional econometrics and store-level data is the most valuable for deriving share-of-wallet to inform customer strategy and investments. Read on...

Paul van Meerendonk
  • Revenue Management
  • The Evolution of Revenue Management and Big Data
  • The hotel sector has never been a stranger to the winds of change. What was once considered leading-edge customer service practices, like offering free internet to guests or express checkout options, are now basic expectations that travelers view as standard services. Just as the hotel industry has evolved, so have the approaches that hotels have taken to attract the right guests at the right prices. The practice of revenue management, and the systems used to make accurate pricing decisions, have become even more precise and sophisticated in recent years. Most recently, these systems have begun incorporating data on competitor pricing activity and the pricing of services outside of guest rooms, like function spaces. Undoubtedly, the biggest change in revenue management today is the influx of large volumes of guest data and its impacts on future pricing decisions and hotel promotion. Read on...

Stephen Darling
  • Revenue Management
  • Unorthodox Repurposing of Hotel Spaces to Create New Profit Centers
  • A hotel property in Kamloops, British Columbia decided to close a 5,000 square foot street-facing corner restaurant that was losing $500k per year. After four years of active marketing, they still could not find a tenant. Attempting to convert the eatery into a wellness space also didn’t work. Following an unorthodox approach, the hotel transformed the space into a mediation and arbitration center called Centrepoint. This helped create symbiotic revenue as parties seeking Centrepoint’s services would likely stay at the adjacent property in conjunction with freeing up hotel meeting space for larger events. Read on...

Mark  Heymann
  • Revenue Management
  • Top Line vs. Bottom Line and the Effect on Market Share
  • A bottom-line focus requires a hotel’s operating team to have a skill set comparable to that of its revenue managers. But while many revenue managers rely on yield management systems to simplify complex calculations and tasks, few operators take similar advantage of advanced labor management technology that can help optimize both labor costs and service performance. Today’s sophisticated LMS solutions are the key to driving bottom-line results while preserving market share. Read on...

S. Lakshmi Narasimhan
  • Revenue Management
  • Promotion Dollars and ROI
  • So, at the end of the day, the whole matter of promoting your product is now squarely in the hands of the social media platforms that are relevant to your business and a big part of that is delivered by the social proof phenomenon. The power shift is not just monumental, it is completely out of the hands of the business as far as directing promotion strategies are concerned. Businesses now are forced to focus on the products and services they offer and the value perception they bring to the customer which hopefully will translate to better revenues and therefore a healthy return on investment on promotions that are carried out through social media communication engines. The boot is now on the other foot. Read on...

Roberta Braum
  • Revenue Management
  • A Guide to Protecting Guest Data with EMV and PCI-Validated P2PE
  • Hotel guest satisfaction has hit a record high, according to the J.D. Power 2015 North America Hotel Guest Satisfaction Index Study. But we can never become too comfortable. Continuing to grow satisfaction levels will give your property a distinct advantage over others. And, while embracing the latest technology trends offers new opportunities to improve guest satisfaction, it also presents a few challenges. Read on...

Mark  Heymann
  • Revenue Management
  • Value Engineering Labor: Cost Management in a Growing Economy
  • Controlling labor costs is crucial to driving profits, and recent studies suggest that hotel managers, having learned hard lessons in the 2008 economic crisis, are paying attention. But as rates and occupancy rebound, salaries and payroll-related expenses likewise are rising, indicating a need for vigilance. Value-engineering labor can help hotels reduce labor costs without compromising the market position they seek to achieve. Read on...

Mmatsatsi Ramawela
  • Revenue Management
  • Growth in Africa: A Look at the 2015 Hospitality Investment Conference Africa
  • Emerging markets, though exciting and ground breaking, can be tough to manage singularly. Partnerships are needed; not in the sense that individualism is not enough, but in the hopes of realizing maximum operational potential. In the hospitality industry, where there is such a broad range of expertise, partnerships are necessary not only to survive, but also thrive. Combining these two, emerging markets and the hospitality industry, and we find ourselves turning to the African stage. An area of the world where vast takes on so many meanings -- opportunity, size, culture. But what also comes with such a gift is the cost of knowing that individuality without partnerships will make success impossible, especially in our industry. Read on...

Kelly  McGuire
  • Revenue Management
  • A Revenue Manager's Guide to Surviving the Awkward Teenage Years
  • Revenue management is relatively new to the hotel industry. Hotels only really started to adopt revenue management processes and systems broadly in the late 90s and early 2000s. We’ve managed to achieve success and gain visibility over the last couple of decades, but we are a relatively young discipline in hospitality. In fact, it could be said that revenue management is still in its teenage years, and, in my opinion, we are definitely acting like it. Read on...

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.