Library Archives

 
Paul van Meerendonk

By addressing channel performance-the concept of measuring key performance indicators across a complex, multi-channel booking landscape-hoteliers can optimize pricing and marketing across all channels, and boost revenue as a result. But for those new to the world of advanced revenue management practices and technology, how does one begin to map out a proactive and profitable distribution strategy? How you choose to distribute your offerings must be carefully and regularly assessed, with the goal of maximizing your profit potential always in mind. Evaluating channel acquisition costs, looking beyond online travel agencies (OTAs) for better revenue opportunities, and finding ways to drive more direct bookings are all good practices for monitoring and improving the health of your distribution strategy. Read on...

Marcela Trujillo

Increasing ADR, in conjunction with appropriate occupancy levels, is an ever-present goal. Not only does this increase RevPAR, but gaining more revenue through ADR provides assets with increased profitability. Consistent application of the following proven techniques leads to consistent rate dominance. In this article, co-authors Marcelo Trujillo and David Beaulieu rely on their experience of more than 35 combined years to thoroughly analyze and explain the pathway to sustainable ADR to maximize a hotel's success. Read on...

Gino Engels

Revenue managers face a daily melange of ingredients to analyze, digest and base decisions on. Advances in Big Data and tools to make sense of it are making life a little easier. But, amid this data-overload, losing sight of the bigger picture - exactly how these metrics are impacting on your bottom line - is an ever-present risk. In what will be a refresher course for some readers and a set of new ideas for others, we present our crucial data tips for profitable revenue management, from KPIs to supply and demand factors, and technology to better visualisation. Read on...

Marcela Trujillo

Revenue management and marketing can seem like two different worlds. Different in many respects, many revenue and marketing teams operate without true cooperation. In this article, Marcela Trujillo with Total Customized Revenue Management (TCRM) explores the similarities and differences between revenue and marketing teams, uncovers the potential of a partnership between the two disciplines and explains how a collaboration can work to attract the perfect customer - one who will not just stay at the hotel or resort, but will also spend within the property and increase total asset revenue. Read on...

Paul van Meerendonk

So, you want to be a high-performing hotel revenue manager, but how much should you understand about analytics, and how much can be left to the scientific experts and automated technology solutions? Well, does being a safe, efficient driver really depend on that much technical knowledge of what's under the hood? Sure, you should probably know where to put the gas, but it's the mechanic we trust to effectively diagnose and repair major issues, and there's an entire history of trial-and-error innovations built into your vehicle that make it into the advanced machine you rely on to get from point A to point B. Read on...

S. Lakshmi Narasimhan

What is the way forward? The future is indeed bright for mixed use projects. Buoyed by a young, sophisticated, urban demand base (millennials and Gen Z) which is willing to fork out big bucks if unique, personalized experiences are delivered, stake holders have been falling over themselves to jump on to this bandwagon which has long term implications for their return on investment. On the one side constant innovation keeps the demand fertile and on the other, intelligent pricing keeps the bottom line thriving and happy. This is a heady cocktail that no self-respecting stakeholder will be willing to pass up. Read on...

Apurva Chamaria

It is challenging task to manage rate parity. A lot of effort is required to track cracks in rate parity, especially for enterprise hotel. Current market subtleties require that hoteliers move much beyond detecting breaches and focus on implementing manners to not only report breaches, but take measures to put a stop to rate disparities and also avert them in the future. In this article learn how to avoid revenue damages caused by breach of rate parity. Know what kind of rate parity tools are modern and learned hotel revenue managers investing in to stay up in the game. Read on...

Shelley Maher

What impact does revenue management really have on sales? Are the two departments separate pieces or can they work together to optimize every revenue stream? How can these two departments, with similar but unidentical goals, collaborate to maximize a hotel's success? With specific examples, top tips and expert advice, Marcela Trujillo and Shelley Maher of Total Customized Revenue Management (TCRM) present a thorough analysis of revenue management and sales and explore both the benefits and the challenges that arise from a strategic partnership. Read on...

Paul Bennie

Hospitality professionals have come to recognize the tremendous value of quickly identifying performance trends in order to maximize efficiency, resources, profitability and guest satisfaction. Yet despite its many advantages, data management has long been associated with the time-consuming and error-prone use of manual spreadsheets. However, advances in technology are now providing hoteliers with the ability to seamlessly integrate data from an array of disparate systems, with real time and accurate information always instantly available. This article discusses how new cloud-based platforms are providing hoteliers with the ability to anticipate their business environment while providing the means to implement sound business strategies. Read on...

Paul van Meerendonk

Love it or despise it, technological change is constant in our modern existence and professional lives-and the rate of change is exponential. Consider that by the year 2000 around two billion gigabytes of data had been amassed worldwide. Now, less than two decades later, that same amount of data is generated on a daily basis. Keeping up with the pace of change is hard. Adopting and implementing the latest technology requires an agile business culture. And culture is the key word. The greatest obstacle to your successful change isn't the technology you use-it is, first and foremost, a people challenge. Read on...

S. Lakshmi Narasimhan

Revenue management has in the past decade or more redefined the traditional and archaic reservation function. It took reservation from an administrative and often clerical function and placed it front and center as a business strategy. It has had its challenges during this time but has reinvented itself multiple times proving it sustainability. Cross Selling was one such reinvention phase. Its promise of integration of revenue streams delivering incremental revenues is a powerful factor since the paranoia that owners have of year on year growth is take care of. It puts a smile on stakeholders faces - a dream not just for every hotel revenue manager but the entire management. Read on...

Mark Heymann

In simplest terms, optimization means consistently delivering against customer expectations to drive revenue, while managing costs to maximize profitability. With the economy projected by some to soften by year-end, the hospitality industry must prepare for short-term growth while planning for longer-term slowing - and be flexible enough to respond to unexpected events. Combine this with the continued challenges of attracting and retaining talent and the priority for hotel operators becomes clear: workforce optimization. You see in this article how a deeper understanding of the specific factors driving both guest satisfaction and employee engagement will give you creative options to optimize operations. Read on...

Paul van Meerendonk

Get as much heads in beds as possible while optimizing your hotel's profit potential. This straightforward definition of a revenue manager's job probably rings true for many of us in the industry. However, if a revenue manager is solely focused on guest-room pricing, then who's in charge of enhancing revenue for the rest of your property? Hotels can generate more than half of their revenue on non-room revenue streams, yet traditional revenue managers and revenue management systems still take a limited "heads-in-beds" approach. So, how do we best decide what business to accept when faced with the complexities of multiple revenue stream considerations like function-space booking? Read on...

Lily Mockerman

How can hotels successfully expand their revenue strategy beyond occupancy? Is heads-in-beds truly the only method for increasing revenue and profits? When should occupancy be a priority, and when should hotels minimize occupancy for maximum revenue? With expert advice, years of experience and thoughtful analysis, president and CEO of Total Customized Revenue Management Lily Mockerman discusses both the benefits and the drawbacks of relying on occupancy as the sole indicator of a hotel's performance. Read on...

Steven Klein

Everchanging challenges sweeping the hotel industry, from new technology-related consumer demands to rising labor costs to shifting competition, are making it more difficult than ever for hoteliers to manage soaring operation costs. With margins thinning, it's crucial hotel operators maintain profitability by performing financial audits. In this article, Steve Klein, a partner at South Florida accounting firm Gerson Preston, dives into the specifics surrounding the importance of a properly conducted, regular and thorough audit so hotels -- large and small -- remain sustainable and allow for greater efficiency to address the evolving landscape of the industry as we know it. Read on...

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Coming up in October 2019...

Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.