Library Archives

 
Steve  Van

Do you have a catering assistant whose first question each morning is Did we sell out? or What was our occupancy and ADR last night? What about a front office associate who is so hungry to earn the perfect sell incentive that every time she works the 3:00 to 11:00 shift and the hotel has just a few rooms left to sell, you can count on the fact that you are going to end up with a perfect sell? If so, you may have just found your next revenue manager! Read on...

Jenna Smith

You do not have to be a hospitality professional to recognize the influx and impact of new technologies in the hotel industry. Guests are becoming familiar with using virtual room keys on their smartphones to check in, and online resources like review sites and online travel agencies (OTAs) continue to shape the way consumers make decisions and book rooms. Behind the scenes, sales and marketing professionals are using new tools to communicate with guests, enhance operational efficiencies, and improve service by addressing guests' needs and solving problems quickly and with a minimum of disruption. Read on...

Lily Mockerman

Today's revenue management systems can help any hotel quickly and efficiently manage revenue tasks that would otherwise present a challenge. It can be difficult to stay on top of distribution across multiple channels when there are plenty of other issues facing a property at any given time. In the Revenue Management world, the differences within independent or branded environments can often be significant regarding how each respective entity deals with revenue management. Often, we're asked about differences in working with each type of property as it relates to strategies or RMS systems, and how TCRM approaches these unique challenges. Read on...

Lily Mockerman

Over the years, outsourcing has developed a somewhat sordid reputation, synonymous with offshoring and tax evasion in some consumers' minds. But when the concept of outsourcing is applied to specialty areas such as IT, accounting, HR and others, it tends to be somewhat more accepted. Nevertheless, many companies still favor hiring these employees directly. Most feel that it ensures better control over that department's performance, and allows them to provide their own assessment of talent. Yet perhaps this level of control and talent direction is precisely why hiring internally can be a disservice to companies. Read on...

Jon Higbie

For years, hotels have housed their Revenue Management systems on their premises. This was possible because data sets were huge but manageable, and required large but not overwhelming amounts of computing power. However, these on-premise systems are a thing of the past. In the era of Big Data, the cost of building and maintaining an extensive computing infrastructure is incredibly expensive. The solution – cloud computing. The cloud allows hotels to create innovative Revenue Management applications that deliver revenue uplift and customized guest experiences. Without the cloud, hotels risk remaining handcuffed to their current Revenue Management solutions – and falling behind competitors. Read on...

Gary Isenberg

Hotel room night inventory is the hotel industry's most precious commodity. Hotel revenue management has evolved into a complex and fragmented process. Today's onsite revenue manager is influenced greatly by four competing forces, each armed with their own set of revenue goals and objectives -- as if there are virtually four individual revenue managers, each with its own distinct interests. So many divergent purposes oftentimes leading to conflicts that, if left unchecked, can significantly damper hotel revenues and profits. Read on...

Ahmed Mahmoud

The more data you have the better but only when the RMS analytics improve price-demand estimates, provide controls for your particular business mix and pricing strategy, and enhance the optimization process. A good example of this is the use of rate shopping data for competitive pricing. A key evolution-in-the-making in revenue management technology in an age of Big Data is the optimization of profitability rather than revenue generation. Profitability optimization can be undertaken by obtaining ancillary revenue and cost data to generate profit contributions by various customer segments. Read on...

Jaavid Bharucha

Revenue management is widely defined as the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of revenue management is selling the right product to the right customer at the right time for the right price. The essence of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment. Read on...

Mark Ricketts

While there are many service industries, hospitality is certainly one of the most complex. The closest comparison may be a cruise ship, or, to a certain extent, air travel. But for something firmly rooted at all times to the ground, we'll take bragging rights. We are providing an extremely intimate service, lodging, within the confines of what is nothing more ambitious than running a small city. The modern hotel comprises housing; utilities and other infrastructure; security; an employment force; a commons, i.e. lobby; and, oftentimes, food, beverage and recreation. We bring together under one roof people from all walks of life, with varying needs, expectations and personalities, everyone from a business executive stressed over tomorrow's important meeting to a senior couple celebrating their 50th anniversary. Read on...

Francesca Vereb

The big data revolution isn't just on the way, it's already here. As of 2012, more data crossed the internet every second than was stored on the entire world wide web 20 years before. From bounce rate to time spent on site to conversion rate and more, it's now possible to access every step of the buyer's journey in great detail. As an enterprising hospitality professional, it's your job to take advantage of that unprecedented access to data. The problem is that big data often feels overwhelming, leaving you and your team to filter what correlations are important, which are just noise, or how to sift the wheat from the chaff and incorporate the useful data into your marketing strategy. Here are the changes and data to pay attention to. Read on...

Jim Vandevender

Revenue management has come a long way since its early days of basic yield management. Many consider 1989 a pivotal turning point when revenue management became a permanent part of hotel management and not just a passing trend. This was the year when Sheryl E. Kimes' oft-cited paper "The Basics of Yield Management" appeared in Cornell Quarterly. Hotels quickly realized that revenue management was a key component of winning the occupancy, ADR, and RevPar race. Hospitality revenue management teams are increasingly integral, strategic, and proactive participants in driving revenue streams. Large and small hospitality organizations alike are committed to the critical function this discipline serves and have developed structures to support the professionals who focus on this key area of a hotel's success. With advancements in market data, decision science, and technology, revenue management continues to evolve. This is especially true of the groups and meetings segment, where revenue managers are using market data and advanced analytics to inform their actions, hone sales strategies, and unite sales and revenue management toward a common goal. Read on...

Bram Gallagher

Revenue managers are increasingly interested in the potential for alternative performance metrics to give a better understanding of profitability than RevPAR. In this paper, I describe an NOI metric CBRE Hotels' Americas Research is developing to give a better understanding of the relationship pass-through performance has with occupancy. To produce this metric, I estimate expenses and revenues from all sources separately with an econometric model. The difference of the sum of expense from the sum of revenues is the NOI. I demonstrate that when occupancy is increasing, revenues grow more quickly than expenses, and NOI growth exceeds RevPAR growth. The inverse is demonstrated for occupancy retrenchment. Forecast values of occupancy and ADR can be applied to the model to produce a forecast of NOI. Read on...

Michael McCartan

Michael McCartan, Managing Director of Europe, Middle East & Africa for Duetto, looks at why the hotel industry has historically lagged behind the technologically advanced online travel agents (OTAs). He addresses the issues of data sharing and analytics, and how these can help shape revenue management decisions as well as enhance the guest experience. He looks at machine learning and technology as a way of removing friction from the guest experience, and questions how this can be incorporated into hotel operations. And he calls on the hotel industry to work together to open up a shared "data lake" and compete head-on with the OTAs. Read on...

Tom Engel

The hospitality industry is abundant with more than 270 hotel brands globally. Nevertheless, this whopping number is not stopping Marriott, Hyatt, IHG, and Hilton from expanding their portfolios with even more new brands. Theoretically, broadening the supply of brands is favorable for generating revenues from various distribution networks, loyalty programs and supply channels. But just how useful, helpful or even good is all this for the customer? Has the hotel industry gone mad by over-saturating the market with brands that are not all that different from each other? Read on...

Megan Wenzl

It is hard to argue that a company's primary focus be anything else but the customer, but just how essential is it for companies to be customer-focused? The answer is - very essential. A major part of being customer-focused is understanding and then ensuring you are giving customers what they want. Specifically, if customers are looking for experiences, then create experiences that are unique and personalized. Details matter. In the 21st century, customers have access to a wide variety of valuable third-party information about businesses to help them decide on a hotel at which to stay on their next vacation. Read on...

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Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.