Library Archives

 
Natasa Christodoulidou

In the travel competitive arena, hotel executives have to deal on an every day basis with various challenges of distributing their room inventory. These challenges include Internet-only rates, distressed room inventory web sites (such as Priceline and Hotwire) and an increasing number of OTAs and Meta sites such as Hotels.com, Kayak.com and others. In order to distribute effectively the room inventory, a deep knowledge and understanding of the distribution channels as well as the impact of e-CRM and social media is required. One challenge is determining the combinations of distribution channels and the optimal number of hotel rooms to be offered for sale through each channel. Read on...

Brandon Edwards

There are two ways to increase profits - raising revenue or lowering costs. Hospitality employers often miss opportunities to lower costs by missing valuable tax savings attributable to hiring incentives. The federal government provides businesses with tax credits for hiring members of disadvantaged groups. This often represents a larger share of a hotel's staff than one would imagine. A member of a targeted group can be as simple as someone who lives in a designated area to one of the 40 million plus recipients of food stamps. Overall, a hospitality employer can expect between 15% and 25% of new hires to qualify for tax credits. Here is a rundown of the major programs to look at for 2011... Read on...

Glenn  Pedersen

How are you monitoring your direct sales force efforts? Who do you count as a member of the sales team? How often are you validating their effectiveness and what are the measurement criteria you are using? Who is interacting with the sales team on a daily, weekly and/or monthly basis? How often does the sales team speak with the revenue management team? Who is on the REVENUE MANAGEMENT TEAM? The answers to each one of these questions can be the difference between success and failure, between REVPAR growth or lost business. Read on...

Steven Pinchuk

The best way to build and maintain guest loyalty during times of commodity price wars is to use Customer Centric Strategies (CCS). The term "commodity" means that the consumer sees all products as the same and the only difference to the consumer is their price. In a commodity market, consumers will usually make their purchase decision based predominately on price. Do you want to keep from becoming a commodity, and settling for the prevailing price of the other products that the consumer sees as a substitute? To avoid being bought as a commodity you can either make your product better than the competition, in the eyes of the consumers, or differentiate yourself to the consumer in another way. Read on...

Cheryl Hawksworth

Hoteliers who lowered their room rates in an attempt to boost occupancy during the recent recession are finding that their actions are now acting as obstacles to their recovery. For future periods of soft demand, it is of the utmost importance to always align any tactics employed to the larger revenue management strategy of the hotel. There is a now an overwhelming acceptance in the industry that in order to truly maximize revenue in a coherent and effective way over the long term, revenue managers, and the discipline of revenue management itself, should fundamentally move beyond traditional, tactical revenue management, to embracing a strategic revenue management focus. Read on...

Christian  Koestler

The field of market price intelligence is powering a new era of revenue management in the hotel industry. At a time when the strategic importance of responsive rate management has never been greater, hoteliers are finding that monitoring hundreds -- or thousands -- of websites for the most accurate data is a monumental task that grows in complexity each day. Revenue and general managers must abandon inward-looking cost-plus rate models in favor of more rigorous outward-focused knowledge-based strategies such as price intelligence. This article reviews price intelligence as a best practice. Read on...

Gabor Forgacs

Room rates should be not the first but the last thing to touch. Room rates are too important to play a continuous game of pull/push with. Hotel brands that held their rates and didn't dilute their rate integrity were the first to lead REVPAR recovery after market slumps. Coming down with room rates, can be done pretty fast. Previous recessions have taught us that rebuilding it, after heavy discounting may take years and it will be uphill all the way. Tactical discounts reflect a short-term approach. Strategic thinking is harder but it may lead to long-term success. Read on...

Johan Creytens

Hospitality industry experts advise hoteliers to be careful not to drop their rates this year, and boost them when possible. The process of building the rack rate however, leads to price wars, within properties in a certain destination. The economy has caused hotels to price out one another, as travelers seek value and the lowest rate possible when booking a hotel. Often times, travelers don't mind at all to book last minute, taking advantage of lowest rates as they shop among area hotels. But, what does all this mean to hoteliers who are doing what they can to keep their hotels alive through the downturn of this global crisis? Read on...

Paul van Meerendonk

Accurate pricing has been shown to be the fastest and most effective way to increase profit across the hospitality sector, but even with a rising amount of information about pricing and increasingly sophisticated technology, few hotels appear executing it well. While setting a price for a room or service may seems like a simple decision, it is also inherently complex and not without its risks. However, if you get these decisions right, a successful pricing strategy can be one of the most significant, positive profit-impacting decisions your hotel can make. Read on...

Mike Kistner

Recovery continues in both the corporate and leisure travel markets. While the leisure sector sustains a slow but steady pace, corporate travel has eclipsed the recovery with both strong booking volumes and record-high growth in average daily rates (ADR). However, despite the significant increases in reservations of greater than +24% over 2009 each month since April, according to data reported in The Pegasus View, hotel revenue is still being hampered by weak ADRs, particularly in the leisure sector. What's a hotel to do? Examine and understand the state of their rates, then seize control of their pricing strategy by understanding their market position, their guests and their resources. Read on...

Paul van Meerendonk

There's no doubt that the speed with which the hotel industry is evolving is accelerating, and more often than not, hoteliers are being forced to constantly evaluate and re-evaluate throughout the year to ensure that revenue is being maximised. Given the growing influence of channel management in recent years, hoteliers across the globe are having to plan very carefully for the future and ensure that the right strategies are in place to work with organisations like Online Travel Agencies (OTAs) - who wield more power than ever before. Read on...

Glenn  Pedersen

Whether the economy is in good shape or bad shape, Revenue Management is a tool, if used successfully, will drive increased sales and bottom line profits. Revenue Management is something everyone knows about but not everyone uses. While there is normally a cost to implementing this at your hotel, there is also an intuitive cost if you don't use it. Our desk clerks are not trained reservation agents and in most Property Management Systems these same desk clerks have the ability to make reservations at the front desk. Unfortunately, they also have the ability to by-pass revenue management strategies in that same system with very little difficulty. Why do we allow this to occur when the remedy is so easy... easy for the customer, easy for the desk clerk and easy for the top line as well as the bottom line. Read on...

Brandon Edwards

Many hospitality employers may not be aware of the numerous state and federal  hiring-based tax incentive programs available to them and the benefits these can have on their bottom line. With the most current tax incentive programs in place, hospitality employers can receive an average of over $600 per new employee hired.  Over a three year period, including retroactive credits, this can easily add up to hundreds of thousands of dollars per location. Here are some best practices on implementing such programs, specifically the Work Opportunity Tax Credit, the Hire Now Tax Cut and the Enterprise Zone and Empowerment Zones programs. Read on...

Brandon Edwards

Most business executives don't feel they are getting much out of the federal stimulus initiatives. But hospitality employers are well-positioned to capitalize on one such initiative: the HIRE Act hiring-based tax incentive program. Hotel operators can claim tax benefits of roughly $750 per qualified hire, and at least half of new hires will qualify. The HIRE Act is not only good for the economy because it encourages companies to bring people back into the workforce, but it's also great for the bottom line. Here are some guidelines on how the HIRE Act works and how to implement a screening program. Read on...

Paul van Meerendonk

In these economic times, hoteliers across the globe need to be more aggressive in pursuing demand in order to deliver profitability. Ensuring coordination between key hotel operational departments is paramount in targeting the right guests and helping to establish customer loyalty amongst profitable guests. In this environment, hotel owners and managers alike need to be mindful that their marketing and revenue management departments are working together and it is important that open channels of communication are maintained. Both the marketing and revenue management departments are unfortunately siloed in many companies, but each holds an important key to the business, which, when used together, become a powerful tool for generating hotel revenue. 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.