HOTEL BUSINESS REVIEW October FOCUS: Hotel Revenue Management
Traditionally, hotels have employed a room-centric revenue model. The primary focus was on pricing strategies that could generate the most revenue from the sale of rooms. However, the pandemic has forced hoteliers to look beyond room revenue exclusively, and to maximize all available revenue streams. How is this accomplished? By re-imagining the use and function of every square foot of a hotel property, and how revenue is generated from it. For example, some hotels are rethinking their spaces for different uses - offering rooms for private day meetings, or offering suites for private dinners. Other hotels with meeting spaces are moving beyond daytime conferences and events, and figuring out how to book those spaces in the evenings, on holidays and weekends, for such things as exhibitions, workshops, rehearsals and pop-ups. Still other hotels are leasing work spaces or parking spaces to businesses in their local market. The October issue of the Hotel Business Review will report on how some leading hotels are re-inventing their revenue management strategies.
This month's feature articles...
As the hotel industry rebounds and evolves, owners are finding ways to become more efficient and modify their service models. Examining the effectiveness of used-and unused-space and reducing operating costs without sacrificing the guest experience is critical. There is opportunity for owners to view their properties with a new lens that benefits both the guest and the hotel. READ MORE
In the wake of the pandemic, how and where employees work has changed. So, too has business travel. As such, hotel revenue managers and sales teams must cater to the shifting needs and habits of business travelers. Data collection and management is critical to understanding customer needs and deploying curated loyalty programs that can enhance guest satisfaction and drive revenue. READ MORE
The post pandemic era is seeing key business model elements like revenue management completely reinvented. From a traditional room revenue based model, revenue is now flowing into streams not imagined. Hospitality organizations are vying with each other to offer products and services which are dictated by customers' travel preferences. This has necessitated a sea change in the way hospitality businesses are looking at technology, alliances and the customer experience. READ MORE
Sleeping rooms. That pretty much defines the focus of the early days of hotel revenue management. What a difference a few years has made to effectively open up additional revenue streams on property. Today's hotel revenue managers are using creativity, quality data, and advances in technology to maximize additional property revenue streams like spas, golf courses, marina slips and banquet menus. READ MORE
Revenue managers should think like options traders. The COVID-19 pandemic and subsequent recovery taught hotel operators that average daily rates can be extremely volatile. Revenue-management strategies focused on total guest spend can help mitigate the risk involved in achieving RevPAR share through a high ADR. Management companies need to incorporate techniques and practices to evaluate all possible revenue-generating strategies. READ MORE
Amidst on-going impacts to the lodging industry along with changes in consumer and business travelers' behaviors, now may be the perfect time to step back and look beyond traditional measures of RevPAR, ADR, Occupancy and Share as indicators of property success. Incorporating retail sales measures and employing productivity analyses may reveal opportunities to refine and/or repurpose as the industry returns to pre-pandemic levels. READ MORE
Today's hotels are finding that their guests are changing. While they were seeing a much higher number of business travelers prior to 2020, today they are seeing the advent of the bleisure traveler, and increasing numbers of guests who are more interested in experiential travel. Hotels have the ability to learn more about these guests and their behavior patterns to create new revenue streams beyond the room, and technology is the key to capturing them. READ MORE
Since the pandemic, hoteliers search for new ways to engage with guests by providing new experiences and offerings during the stay. Discussing ways ancillary revenues can be captured by hotels, Shawn Tarter outlines new ideas to consider when wanting to enhance the guest experience through extra amenities and how technology plays a role in interactions prior to check-in, during the stay, and after check-out. READ MORE
Today's leading hoteliers need to adopt new technology in order to effectively manage and grow their properties' overall revenue and meet their guests' increasing expectations. The traditional approach to technology adoption has been fragmented, disjointed, underwhelming and inefficient. Property owners can tap into property tech partners to unlock the potential of technology with a thoughtful end-to-end process which increases the success factors for owners/operators and the overall guest experience. READ MORE
Advances in mobile technology give hotels increased freedom to diversify their revenue streams. Mobile upselling has the potential to reap enormous sums of ancillary revenue, while expanded asset classes allow hotels to capitalize on the emerging trends of remote working and short-term rentals. Soon, Attribute-Based Shopping will create an even more bespoke guest journey while earning additional revenues for hotels. READ MORE
Hoteliers are caught in the middle, trying to optimize revenue performance while facing rapidly escalating operational costs. Workforce operations make up the bulk of these costs and are also artificially capping occupancy in many cases. For any revenue management strategy to succeed in today's climate, hoteliers need to recognize and address the impact that labor costs have on their success. READ MORE
Thriving vs. surviving requires pivoting and shifting toward innovative, out of the box thinking, especially with normalcy predictability not within sight. There are no cost cutting controls that will replace evaporated demand over- night. Sometimes consolidation will provide temporary relief, however, creating new revenue streams must be the focus for sustainability. There is no need to create the beautiful Southern California sunsets, or the grand mansion views of the iconic Hollywood Hills…only the idea on how to showcase what already existed. READ MORE
After more than three years since the onset of the pandemic, hotels can now add "weathering the inflation storm" to their list of expectations. In this article, Priya Chandnani, VP of revenue management at Benchmark, Pyramid Luxury & Lifestyle, discusses how technology and standardized performance measurement are crucial to capturing mostly untapped revenue and profit potential, associated with hotels' non-room revenue-generating centers. READ MORE
In 28-months following the impact of Covid-19, U.S. RevPAR has reached full recovery relative to pre-pandemic levels; however, GOPPAR (gross operating profit per available room) has not. With owners facing rising margin pressures, revenue managers have an opportunity to meaningfully impact the bottom-line by adopting a profit-focused mindset via total hotel revenue optimization. READ MORE
Revenue management is a constant focus for hotels as it is an essential part of driving both revenue and profitability in a highly competitive environment. The hotel industry has evolved over time and is now driven by data science, algorithms, trained professionals, sophisticated tactics, and strategies. Effective revenue management will often be a major contributor to success. READ MORE
It's easy to tell hoteliers to go back to doing what worked in the past, but rules have changed. While travelers are returning to many pre-pandemic behaviors, there are just as many who have had their preferences forever altered. Now is the time to tap into available technology to understand trends impacting guest spending and how hotels can maximize profitability. READ MORE
An important feature of revenue management today involves melding our contemporary, advanced methods of analyzing and forecasting demand and making decisions on room pricing and availability with insights gleaned from the pandemic. These insights, especially related to guest mix and length of stay preferences, will help guide us as we work through another important RFP season as business travel improves. READ MORE
Leveraging Revenue Management teams and principles is an under used and critical component of an agile modern hotel strategy. Empowering your revenue team in areas not normally considered their sphere of influence will generate meaningful progression in profitability without hampering long term growth with an encumbered model based on fair-weather fees that alienate our guests. READ MORE
Many hotels promote discounted add-on bundles during online booking to maximize guest spend. While there are a number of ways to present the discount on a bundle, all are not created equal in terms of their ability to influence purchase. Why is this, and what can you do to frame bundle discounts in a way that will maximize conversion potential? READ MORE
This article explores the biggest opportunities that modern revenue managers have to impact hotel revenues. It focuses on traditional limited and full-service hotels and applies to both branded and independent properties. Topics discussed include fixing your foundation, ancillary revenues, and digital marketing. It is full of practical tips and plenty of refreshers for those of us who get stuck in the daily groove. READ MORE
Before the COVID-19 crisis, hotel revenue management was largely focused on maximizing room revenue. When COVID-19 hit the global hotel industry, this force hoteliers to come up with many revenue-generating creative ideas to keeping their business afloat from room revenue to renting out equipment, offering outsourced services and using every square foot within the hotel property to generate more revenue. READ MORE
The pandemic has seen hotel operations come into sharper focus than ever, with a growing move away from RevPAR to revenue per square foot. Every inch of the asset must be made to account for itself and deliver to the bottom line as the operation of hotels is overhauled, reports Alex Sogno, CEO, Global Asset Solutions. READ MORE
The evolution of lodging revenue management from the days of a commercial airline tool to its focus on room revenue, to its current status, implies revenue management progression to a total revenue focus. This discussion will review trends in revenue management practices and the changes from a 'rooms only' focus to a total revenue management focus. Revenue management education, learning and decision tools and career pathways will also be discussed. READ MORE
The current challenge facing most operators is obtaining skilled manpower. We loss sleep over it, and it is an overshadowing effect of how we manage our hotels, and at times how we take initiatives in finding new or past sources of revenues/profits. But there is good news if we challenge ourselves. It can be in re-committing leadership to basic standards. It can also be by the use of technology in lieu of the manpower which is in short supply. READ MORE
Total revenue management, or rather optimisation doesn't have to be complicated and has evolved from data crunching to creative thinking, forming the cornerstone of a hotel's commercial strategy. And, in today's fiercely competitive marketplace, disrupted by new demand patterns resulting from the pandemic, an innovative approach is essential. READ MORE
Hoteliers have been talking about total hotel revenue management (THRM) for at least twenty years, but have been slow to implement it. The pandemic forced many hotels to rely on non-rooms revenue sources since rooms demand was negligible or non-existent. A good way to approach THRM is to determine how much revenue is being generated by each productive square meter of space in the hotel. READ MORE
After nearly three years of travel restrictions due to COVID-19, data shows that travelers are eager to book their next vacation. Brazil has been focused on bolstering their travel infrastructure to attract visitors from all over the world, from new luxury hotels, to new roads that will connect coastal towns, and more. Investors would be wise to keep an eye on Brazil's travel and tourism industry. READ MORE
The word 'meeting' is defined as 'a coming together of two or more people, by chance or arrangement'. But the very meaning of meeting has evolved and changed these past few years much in part to a pandemic and restrictions along with ever growing need for flexibility. This is an opportunistic moment in industry for meeting venues, planners and hotels to demonstrate how they have evolved with this change. READ MORE
Hotels and resorts can benefit from the growing popularity of the vacation rental industry and should begin opening their doors, literally and figuratively, to a new revenue stream. Consumers are constantly seeking new opportunities to experience travel and vacation rental sites give them the ability to browse and choose between many locations and amenities that fit what they're looking for. READ MORE
Covid-19 upended deal flow in many industries, including the hotel sector. Now hotel investors face new challenges from rising interest rates and costly debt, leading to a slowdown in deal volume. Even so, hotels stand to benefit longer term as pandemic-weary consumers embrace a return to travel. We look at the upside – and potential risks – associated with investing in the hotel space. READ MORE
Data from the recently released J.D. Power 2022 North America Hotel Guest Satisfaction Study shows a continuing decline in guest satisfaction with breakfast in the limited service hotel segments, primarily due to lower guest satisfaction with both variety and quality. Andrea Stokes, J.D. Power's Practice Leader for Hospitality, advises owners and operators on a step-by-step approach to crafting a breakfast strategy to future-proof the limited service guest experience. READ MORE
The Chief Commercial Officer role has allowed hotel management teams to align revenue-generating initiatives at the corporate level, but this alignment does not successfully trickle down to the hotel level. At the hotel level, new perspectives on aligning hotels around revenue goals versus functions are creating greater opportunities for convergence to help drive efficiency. READ MORE
Recent Features ...
September 2022
August 2022
July 2022
June 2022
May 2022
