Editorial Board   Guest Author

Mr. Mandigo

Theodore Mandigo

Professor, Kendall Coillege

Ted Mandigo has spent nearly 40 years providing consulting services to the hotel industry. He has provided the market studies used in financing the Ritz-Carlton; the Fairmont; the Swissotel; Embassy Suites; Fairfield Inn; Wit Hotel; and the Hampton Inn. Consulting service engagement include the Drake; the Whitehall; Hyatt Regency; W City Center; Sofitel; Intercontinental; Westin River North; and the Renaissance. He has also conducted studies for the Club industry including in Chicago the Union League Club; University Club; Chicago Club; The Casino and several city and country clubs around the country. Ted received his undergraduate degree from Cornell University School of Hotel Administration and his MBA from Loyola University of Chicago. He is a charter member and founder of the International Society of Hospitality Consultants and a CPA. Ted Mandigo was the President/Chairman of the Illinois CPA Society and served on the national council for the AICPA. He was chairman of the Finance Committee for Lutheran Social Services of Illinois; chairman of the Food Service Committee for the Ravinia Festival; co-chair of the allied member committee of the Illinois Hotel and Lodging Association. Work experience includes Partnerships at Pannell Kerr Forster and BDO Seidman accounting firms; Director at Landauer; and as President of his own consulting firm, TR Mandigo & Co. which was founded in 1995. Mr. Mandigo is a frequent guest speaker for various hospitality organizations including preparing and presenting an annual forecast for the Chicago Downtown Hotel Managers; the O'Hare Hotel Managers; the DuPage County CVB; the Midwest Lodging Conference; and the Phoenix Lodging Conference. Ted is also a full time faculty member at Kendall College where he teaches Hospitality Law; Feasibility Studies; Revenue Management; Labor Relations; Quality Service; Management Strategy; and Real Estate Finance.

Mr. Mandigo can be contacted at theodore.mandigo@kendall.edu

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.