Revenue Management
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...

Kelly  McGuire
  • Revenue Management
  • Profile of the New Revenue Manager
  • Revenue management is taking on a more strategic role with growing responsibilities and new opportunities to expand the influence of the discipline. One thing remains constant: the revenue manager is the key to a successful revenue management program. This role requires an analytically minded leader, who can successfully work across the organization to drive results. Revenue management has traditionally been a detail-oriented, analytical discipline obsessed with data and consumed with spreadsheets. The more analytical, the better. As the discipline has matured, technology has become more sophisticated and the role has expanded, the requirements of the job are evolving. Read on...

David Hogan
  • Revenue Management
  • Captivating the Digital Generation
  • When compared to older generations, millennials may not be the most well-traveled group, but they are on their way to becoming top travel consumers. According to a Harris Poll survey, millennials, those born from the early 1980s to the early 2000s, already plan to spend about $226 billion on travel this year. For this reason, it is important hotels and restaurants truly understand the consumer power of millennials, and the importance of capturing and keeping their business. Read on...

S. Lakshmi Narasimhan
  • Revenue Management
  • Social Proof – The New Referral Engine
  • The market landscape has truly undergone a major metamorphosis in the past decade. The way businesses woo customers has consequently also changed dramatically. Gone are the days when businesses craved for referrals through direct communication. The new referral engine is social proof - the positive influence that is created when someone comes across something that many others are doing. In a way, it is using experiences of others to choose a product. Read on...

Tammy Farley
  • Revenue Management
  • The Evolution from Revenue Management to Total Guest Revenue
  • As the art and science of revenue management evolve, the focus sharpens on finding custom solutions rather than selling products to hotels, resorts and gaming establishments. As sophistication grows, the target broadens to maximization of total guest revenue. This article provides a roadmap – and cites best practices -- for optimizing revenue, regardless the type, size, or makeup of a property’s business. Read on...

Amy Bair
  • Revenue Management
  • Which Top Line Revenues Result in the Most Bottom Line Profits?
  • Thanks to the Age of Technology, Revenue Management has risen to the top of the Agenda for virtually every hotel Executive Committee meeting. The question to be answered historically has been “How do we maximize our revenue stream?” But that question has been expanded to “How do we maximize our revenue stream and ensure that dollars coming in on the top line survive the journey to the bottom line?” The simple answer is focus on optimizing room rates. The numbers make the case. Read on...

Elizabeth  Churchill
  • Revenue Management
  • Five Steps Toward Revenue Integration
  • After beginning a process of integration more than a year ago, Aqua Hospitality and Aston Hotels & Resorts rebranded this year as Aqua-Aston Hospitality. In addition to the new name, the group – which manages more than 50 properties across Hawaii and the U.S. mainland – also unveiled a new look, and further distinguished what its five hotel brands offer travel partners and consumers. The result: one of Hawaii’s leading hotel management groups is in a stronger position to achieve sustainable growth through strategic revenue management. Read on...

Kristie Dickinson
  • Revenue Management
  • Top 5 Questions Hotel Owners Should Be Asking About Revenue Management
  • As hotel asset managers, we ask a lot of questions. Separating the average asset managers from the indispensable ones, is the ability to ask the right questions. What are the right questions, you ask? The right questions do a number of things…for one, they challenge the status quo, shake things up and really make people think – why are we doing it this way, how else might this be done, is it working and what should we change? Questions should also evoke discussion about where you are today, but more importantly where you want to be in the future and how to get there. Read on...

Paul van Meerendonk
  • Revenue Management
  • Revenue Management's New Frontier in 2016: Extended Length Accommodation
  • Extended Length Accommodation - For hotel groups looking for new ways to generate additional revenue in 2016 and beyond, the extended length accommodation sector continues to grow and provides solid value for owners and guests alike. While the sector grew out of a niche set of hotels in the 1970’s that sought to provide long stay guests with home-like amenities and atmosphere, nearly every major global hotel franchise today has at least one extended length accommodation product under their portfolio of brands. Pricing of extended length hotels and serviced apartments has traditionally been a challenging concept for revenue managers given rates vary greatly depending on the length of stay a guest is seeking. Read on...

JANUARY: Mobile Technology: A Permanent Sense of Immediacy

Alastair Cush

A growing number of properties are implementing mobile access guest room locking systems and the apps that support them. Many chain standards mandate mobile access and independents are joining the trend. What few operators understand is that mobile access implementation has changed not only every aspect of hotel door locks but also many other areas of hospitality operations. More people are actively involved in the decision making process for hotel locks than before. Mobile access has integrated the lock process with numerous property and chain departments from sales to guest loyalty and brand marketing. The original purpose of improving guest door locks was exclusively loss prevention and security. Read on...

Jim Vandevender

Meeting data and technology have evolved considerably since the days of the bulky ,expensive mail ordered meeting planner guides and hotel catalogues. The ways in which hotels find and book groups is far different than the antiquated methods of not so long ago. As better technology surrounding meetings and events becomes available , hotels appetites for group business seems to also increase at a parallel pace making the need to keep the related technology evolving even more paramount. The companies that provide hotels with this meeting intelligence are continually developing new and more advanced methods of gathering this sought after data to keep up pace with the demand. Read on...

Dave Weinstein

As with so many industries, the smartphone has transformed how organizations interact with their customers. Look at the automotive industry, the airline industry, and of course, the hospitality industry. You start your car’s engine and set the climate control to the desired temperature, buy airline tickets and check-in on your flight and do the same with your hotel room, all from your phone. There is a slew of services that traditionally are offered by hotels via the “book” on the desk. The book is still there, but some hotels allow you to order via the television while others offer integrated tablets. Read on...

Kacey Butcher

Can you imagine your bank choosing not to provide a way to check account status and transactions outside of your monthly paper statement? Can you further imagine a popular franchise restaurant only having paper take-out menus? You would be forced to contemplate what other aspects internally within the organization would make doing business with them complicated and archaic. There you find your own personal underlying immediate expectation of baseline service and operational procedures, where a decision is often made instantly to move onto the next provider. A decision to choose another provider that seemingly knows how to service customers with the utmost up-to-date standards. Read on...

Coming Up In The February Online Hotel Business Review

Feature Focus
Social Media: Interacting with the Hotel Customer
Consider these astonishing numbers: 1.49 billion active monthly Facebook users. 1.1 billion active monthly YouTube users. 320 million active monthly Twitter users and nearly 400 million registered users on LinkedIn. 400 million active monthly Instagram users and 200 million active Google+ users. The power and reach of social media is an awesome force and it has transformed how hotels interact with their customers. In the past year, social media advertising spending increased 33.5% to nearly $24 billion dollars. Social networks are being utilized by hotels to reach more visitors, expand brand awareness, enhance brand reputation and to establish more direct and personal communication with their customers. Savvy hotel operators are adopting a comprehensive social media strategy, and there are several emerging trends to note. Video continues to be a powerful and influential element in social media marketing, with 70% of companies saying that it is their most effective marketing tool. Video generates a 62% higher engagement rate than photographs alone, and with new social sites like Meerkat and Periscope which offer live video streaming, those numbers will only increase. Sponsored content is another growing trend. Though advertorials have been around for decades, hotels are finding new ways to maximize the visibility of their content. Some are placing sponsored content on Facebook, or on influencer blogs. Another trend is the integration of a “Buy Now” button into social media websites. Customers will be able to make purchases without ever having to leave their favorite social sites. This development is a major convenience for customers and should also be an additional revenue source for hotels. The February Hotel Business Review will explore these issues and examine how some hotels are successfully integrating social media into their operations.