Now that managing social media is arguably becoming a mainstream activity for hotel marketing departments, it’s time for hotels to begin to think beyond marketing applications, and dig into the opportunities to use social data and channels across the organization. Revenue managers, who typically lead the analytic charge within the organization, are uniquely poised to lead in taking advantage of emerging opportunities afforded by social media. However, with all the attention surrounding social media these days, hotel executives must able to see through the hype to develop effective use cases. READ MORE

Since yield is the process of generating every last dollar in revenues and profit flow through that of retaining every last dollar in profits, it is logical and appropriate that they be allies. But often they are found to be adversaries in the sense that they are working at cross-purposes. This can only hurt the business. If it is to realize its inherent power, Revenue Management must no more be treated as only a marketing strategy. Its effectiveness is in delivering incremental profit dollars from incremental revenue dollars. This is what the stakeholders will be expecting. The ones who harness this power are likely to survive the ones who do not. READ MORE

It’s easy to lose the “science” part of rate setting and switch to “art” or even gut feel. But a series of pricing studies by Cornell’s researchers has found that a hotel can leave money on the table by setting inappropriate prices. In this discussion, we’re talking about an overall pricing strategy with regard to your competition. Within that strategy, you may want to apply certain tactics from time to time. Tactics and strategy are two related sides of your pricing coin. READ MORE

This paper is about a new approach to optimizing profits, called Customer Centric Profit Optimization (CCPO). In CCPO a new analytical model is used to create lifetime customer behavior profiles (lifecycles). These lifecycles are used across the whole organization to coordinate all departments’ actions/interactions to assure they nurture & optimize that customer’s strategic lifetime value, turning their loyalty into affinity. CCPO pricing is based on the lifetime strategic value of each customer, not their tactical value for just one transaction or one product. By nurturing and optimizing customer loyalty, where enough customer data is available, strategic profits are increased instead of the tactical profits that are optimized today. READ MORE

Today it is harder than ever to be an independent property. Why? There are two overarching reasons. First, the Internet has made it very easy for consumers to shop around. A lot. Second, given the tough economy and overcapacity in the lodging industry, competition is fierce. So how can independent properties compete and thrive? In the face of stiff competition from deep-pocketed chain hotels, there are many independents who are thriving. They have adapted to the new world and are behaving differently. Quite simply, they have evolved. READ MORE

In today’s extremely competitive hotel market, hoteliers are recognizing the benefits of taking a targeted approach in identifying and reaching guests who will bring the most value to their hotel. Here are the top ten questions that hoteliers should be asking revenue managers to ensure they are making the most of upcoming demand and attracting the right kind of business. READ MORE

It’s usually a safe bet to assume that any hotel would like to increase its revenue and acquire more profits. High-performing hotels foster a culture of constant improvement and regularly ask, “How can we grow and sustain increasing levels of income?” Believing that there are a number of different income growth strategies that hotels can use to generate much-needed revenue, each strategy comes at a different “price.” While some revenue sources are easy to implement and require little technical expertise, others might be perfectly suited for the missions and strengths of your hotel, yet require a more significant investment. READ MORE

While the application of revenue management techniques to improve RevPAR (revenue per available room) is an important aspect of strategy planning amongst many lodging providers total or ancillary revenue management is not as widely used. The goal of revenue management is to generate more revenue by analyzing demand to devise the most applicable pricing and product distribution strategy. This holds true for both rooms and ancillary revenue management, but the latter has a number of additional complexities making it more difficult to even get started. This article will provide an overview of various areas for ancillary revenue management and explore strategies and challenges of implementing a total revenue management strategy. READ MORE

Most revenue management professionals have been taught past history dictates future performance. Does the old adage hold true in today’s economic and diversified environment? The answer quite simply is the old adage and past methodologies are not enough. While the saying still holds direct relevance to the future of hotel demand, the change in both technology and consumer behavior has substantially evolved over the past several years. Today, how does a revenue management team predict and hit their goals and what will come of tomorrow? READ MORE

Revenue Management in hospitality is a relatively new discipline, and, as with anything new in today’s world, has evolved rapidly since its inception in the late 1980’s. This article explores the origins of revenue management, best practices for today and a glimpse into the future. READ MORE

Today, consumer buying behavior is evolving so rapidly Revenue Managers must feel like they are trying “to shoe a horse on a dead run”. Not to mention that technology is more complex, distribution options multiply day by day and business intelligence reports are seemingly limitless. How does a revenue management professional keep pace with this change and the associated complexities? The answer is they don’t. So what is a Revenue Manager to do? And how does a hotel or hotel company determine whether their revenue management resources are first, second or third generation professionals? READ MORE

With the world shifting to digital and hotel competition increasing daily, hotel owners/operators must adapt on a variety of fronts to increase revenue while meeting or exceeding guest expectations and demands. Nowhere is that more prevalent than in a hotel’s various technology options, from the property management system (PMS) to data security to taking guest payment options beyond the front desk to so much more. Quite simply, revenue management is so closely tied to technology that hotel owners/operators must determine which technology improvements will bring the greatest return on investment. READ MORE

As the revenue management discipline continues to evolve, industry professionals must continue to look at the transition from tactical operations to strategic deployment of their systems and processes. The industry as a whole needs to step up to the plate and maximize total hotel revenues from existing demand by setting both short and long term strategies. To increase revenues, it is not enough to only “play with” the non-contracting individual demand – in many cases, this is less than half of a hotel’s revenue. Not moving to a strategic revenue management model will only leave money on the table. READ MORE

Revenue management is an evolving discipline. For almost two decades, revenue management and its role in operations have been discussed in numerous articles. Each dissertation that explored the role seemed to reveal new opportunities to leverage revenue management in hotels as the revenue manager expanded his or her responsibilities beyond the reservations office. Before revenue management was considered a viable partner in hotel operations outside the reservations office, I began my career like many other revenue managers at the time when rarely were we seen outside those four walls—and, there certainly was not a place at the Executive Committee table for a revenue manger. READ MORE

Since the down turn hotels have largely struggled with growing revenue year over year. A decrease in revenue growth can be caused by not having the proper mix of business in house, but your revenue manager’s job is to bring in the right mix of business for your hotel. Staying competitive is important, but a hotel should look to be competitive in not just occupancy, but ADR and RevPAR as well. Finding consumers in your market, qualifying them for your hotel, and optimizing their rate with your current mix can largely help hotels struggling to grow. READ MORE

Conference and meeting space can play a very different role in the ecosystem of a hotel, depending on factors like its location, targeted audience, and other amenities. In the first article of this series, Eric M. Rahe, AIA, LEED AP, explained that regardless of the type of hotel, there is a shortage of conference and meeting space across the industry. An increased demand from corporate meeting planners for different sizes and kinds of space may indicate that its availability and flexibility will be increasingly important to hotels’ operations and revenues. Michael Prifti, FAIA, Managing Principal at BLT Architects, will explore the role of meeting and conference space in different hotel types and how each can strategically maximize its value through design and planning. READ MORE

The world’s hotels play a key role in supporting the success of the group meetings industry. Without enough meeting and networking space in town and sufficient rooms for people to rest after a long day of business, large and small meetings would be unable to operate effectively. So what’s ahead for 2013 and beyond for hotels that want to begin or expand their group meetings business? How can you, as an hotelier, increase your value proposition? As Germany is the #1 associations group meeting destination in Europe and #2 globally, I’d like to offer some trends we’ve seen here that are applicable for hotels of all shapes and sizes…all around the world. READ MORE

This article will analyze the extent to which green policy has had an impact on MICE bookings. It will go into further detail on the type of hotel conference center trends the two chosen member properties have seen for 2013, whether or not the current economic climate has affected the hotels’ green policy investment and which markets are most receptive to green policy. READ MORE