Hotel Business Review: Week of Sep 19, 2016

Daniel Wise
  • Revenue Management
  • Bringing Revenue Management Tools to the Masses
  • Hotel revenue and profit optimization solutions have come a long way since my time as a revenue manager at Best Western several years ago. During those days, I discussed frequently with my co-workers how, while there were clearly benefits to implementing an automated revenue management platform, the technology solutions available at the time were not ideal for the mid-market sector of the industry, let alone independent hoteliers without the power of a flag behind them. Read on...

Albert Pucciarelli
  • Hospitality Law
  • Best Practices in Arbitration for Hospitality Cases
  • In my two prior articles on alternative dispute resolution, I discussed mediation and expert resolution. In ascending order in terms of “severity” of the matter in dispute, the next alternative for resolving disputes is arbitration. By “severity”, I am referring to the either the complexity of the question to be resolved where legal interpretations, document discovery and witness testimony, even expert witness testimony, may be utilized by the parties to present their side of the dispute. In short, the matter to be arbitrated typically is not unlike matters over which parties go to court, but for reasons we will explore, arbitration may be preferable. Read on...

Ken Hutcheson
  • Eco-Friendly Practices
  • How to Overcome Common Irrigation Challenges
  • As hoteliers, you rely on your irrigation systems to help protect the investment you’ve made on your property’s landscape. It is critical for the overall health and appearance of your landscape that the irrigation system is properly installed, operated, and maintained. Otherwise, your system is at risk of wasting water and damaging your property. Scheduling a technician to perform routine maintenance checks can ensure early detection of a problem, increase the efficiency of your irrigation system, and conserve water. Here are three common challenges grounds managers often face with their irrigation system, and how technicians overcome them. Read on...

Maite Vélez-Couto
  • Sales & Marketing
  • Using Influencers Effectively Gives Hotels a Strategic Advantage
  • Effectively communicating brand messages to current and future guests remains an essential business strategy for any hotel. More and more, companies are turning to influencers to reach a broader audience and help boost sales. But not every brand or hotel has mastered the complexity of these partnerships nor are they really sure how to best measure their success. Although there are three basic elements to influencer engagement – plan, research and measure – the key is in the nuances. Read on...

SEPTEMBER: Hotel Group Meetings: Demand is Trending Up

Mike May

Millennials, Zika, Brexit, elections, the economy, mega-mergers…every quarter brings a newsflash du jour. Hotel professionals need a genie to tell them what to ignore and what requires their action. This article summarizes the most relevant trends affecting group meetings – along with tips from corporate meeting planners on what hotels can do to help their group customers succeed, and help you improve a hotel’s group meeting business. Read about the importance of authentic local experiences, unique venues, event apps, and negotiations with buyers. Read on...

Paul Van Deventer

In the U.S. alone, the meeting and event industry drives $280 billion in annual economic impact. To add perspective, that’s more than air transportation, the motion picture industry or spectator sports. Additionally, the industry generates a massive amount of taxes, with $88 billion generated at the state, federal and local level last year; taxes that help our communities pay for services, build schools, fix roads and maintain parks. The Meetings Mean Business (MMB) Coalition—an industry advocacy group of which MPI is a part—has been conducting video interviews with top executives at major companies to find out just how important meetings and events are to their bottom line. Read on...

Brian Bullock

Last year, millennials surpassed Generation X to become the largest generation in the U.S. workforce. They also may be history’s most fickle generation. Two-thirds of millennials plan to leave their current organizations by 2020, according to a recent survey by Deloitte. Additionally, 44 percent said they would leave their current employers within the next two years if given the choice. So it’s not surprising that businesses are adjusting everything – from office space to company culture to the way business is conducted – to cater to millennial wants and needs. Companies have recognized that attracting and retaining top talent from this burgeoning generation is no joke. Read on...

Michael Dominguez

As the meetings market has fully recovered from the 2008 recession, this industry expansion has given all the players in the meetings market some unique circumstances that have not been collectively experienced before at any one given time. If this was a social media relationship, we would have to list it as “it’s complicated”! First the good! We are experiencing record demand in North America that has set records now for 3 consecutive years. What is most encouraging is that there is not a particular scale of hotel that is leading this growth, but rather all segments are showing record strength. Read on...

Coming Up In The October Online Hotel Business Review


Feature Focus
Revenue Management: Measuring All Hotel Revenue Streams
Revenue Management is a dynamic and ever-evolving profession and its role is becoming increasingly influential within hotel operations. In some ways, the revenue manager's office is now the functional hub in a hotel. Primarily this is due to the fact that everything a revenue manager does affect every other department. Originally revenue managers based their forecasting and pricing strategies on a Revenue per Available Room (RevPAR) model and some traditional hotels still do. But other more innovative companies have recently adopted a Gross Operating Profit per Available Room (GOPPAR) model which measures performance across all hotel revenue streams. This metric considers revenue from all the profit centers in a hotel - restaurants, bars, spas, conference/groups, golf courses, gaming, etc. - in order to determine the real gross operating profit per room. By fully understanding and appreciating the profit margins in all these areas, as well as knowing the demand for each one during peak or slow periods, the revenue manager can forecast and price rooms more accurately, effectively and profitably. In addition, this information can be shared with general managers, sales managers, controllers, and owners so that they are all aware of and involved in forecasting and pricing strategies. One consequence of a revenue manager's increasing value in hotel operations is a current shortage of talent in this field. Some hotels are being forced to co-source or out-source this specialized function and in the meantime, some university administrators are looking more closely at developing a revenue management curriculum as a strategy for helping the hospitality industry close this gap. The October issue of the Hotel Business Review will address these significant developments and document how some leading hotels are executing their revenue management strategies.