During COVID-19, ownership groups and management companies took organizational decisions that impacted the effectiveness of Revenue Management. As business ramps up and we observe changes in the segmentation and channel mix, we need to quickly shift gears, and not just to how it was before. A deep dive in our labor model and our approach to Revenue Management systems is key to effectively support the discipline and increase hotel revenues on the long term. READ MORE
HOTEL BUSINESS REVIEW
October FOCUS: Revenue Management
This budget will be the starting framework for our action plan for the entire year, and we want it to be as proportionate as possible to the amount of revenue risk. If you are diligent to do your market research, quantify implications of your revenue risk, and pre-plan for contingencies, you will set your hotel team up for success for the year ahead. READ MORE
The pandemic has forced us to fiercely restructure our organizations. To streamline revenue processes with the downsized staffing, maybe the time has come for the hospitality industry, to seize the day and address those much-needed innovations we've been muttering about for years. Is now the time for revolutionary changes in how we structure revenue optimization in hospitality? In a word, YES! READ MORE
Sporadic demand has resulted in a lack of confidence in historical demand-based pricing models and occupancy trends. This article explores how revenue managers can develop an understanding of future demand. Future demand hinges on understanding guests and understanding forces driving changes in market demand. Can predictive analytics be used to predict future business levels? READ MORE
The slow and steady US hotel recovery is well underway and the rebuilding of teams will gain momentum in the coming months. The supply of must-have progressive revenue strategy leaders for the new industry landscape will likely be less than the demand. However, there are a few proactive solutions hotels and resorts can take to get ahead of this key leadership position shortage in the coming months as they recalibrate and rebuild their teams for 2022 and beyond. READ MORE
Since March 2020, hoteliers have been adapting to dynamic demand patterns and customer behaviors. The crisis has led to savvy hoteliers employing a new-era revenue management strategy, which is likely to endure after the virus fades. The pandemic has prompted hoteliers to analyze virtually all aspects of their businesses in order to run as lean and profitably as possible. READ MORE
Since Covid-19 has intensified the need for changes in customer and business relationships, this provocative article by Holly Stiel explores the valuable relationship between businesses, their customers and their teams. Learn how to be the employer of choice through understand the importance of emotional labor in order to win the hearts/minds of your team. READ MORE
The demand landscape has changed considerably over the past 18 months, requiring operating teams to revisit all aspects of revenue strategy and goals to not only capitalize on short-term opportunities, but also position for recovery. This feature outlines key topics for consideration, as owners and operators collectively plan for the future, while contending with current operating realities and an ever-evolving business environment. READ MORE
Throughout the 2000s the number of hands in our hotels has increased with new OTAs, Revenue Management Software (or RMS), and for some Brand Control. A question all hoteliers should be asking themselves is: Is 100% of my hotel inventory available to sell 365 days of the year? The answer is unequivocally "No", regardless of brand affiliation, franchise, or independent. READ MORE
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Hotel chains are using mergers and acquisitions to expand their portfolios and increase revenue, but many don't consider the impact on Revenue Management. For many, the acquisition results in disparate Revenue Management systems that don't integrate with the different brands or create efficiencies of scale. Additionally, some go with an off-the-shelf solution that doesn't take into account the needs of the different mix of economy vs. luxury brands. This article provides an insight into the most common problems hotel revenue managers encounter with mergers and acquisitions, plus some solutions on how to address them. READ MORE
Since their emergence in the early 2000's revenue management roles have become a critical component of the hospitality industry. Training and development resources for revenue managers have grown considerably in response to this change. Given the likelihood of turbulent times in 2020 – the result of an abundance of new supply, trade wars, the continued proliferation of brands, and other social and economic factors – as a general manager or asset manager the need for a skilled revenue manager is becoming more and more essential. This article provides an overview of the ideal revenue manager, including their most needed attributes as well as how best to measure performance. READ MORE
