Editorial Board   Guest Author

Mr. Hirko

Rhett Hirko

Executive Director, Preferred Hotels and Resorts

Rhett Hirko serves as Executive Director of Revenue Account Management for Preferred Hotels & Resorts, responsible for supporting the revenue activities across all of the company's member hotels in the Americas and working directly with Sabre to support the reservation needs for all member hotels globally. A Certified Revenue Management Executive, Mr. Hirko has practiced revenue management for more than 20 years, spending the majority of his time in various roles with Hyatt. He designed and implemented the single-image inventory reservations process for Hyatt Hotels Corporation in North America and oversaw revenue management in a regional capacity for seven years. For the next 14 years, he worked with Hyatt International where he designed both the CRS-RM interface and the RM training program and directed the RM process. From there, he was transferred to Zurich to head revenue management for all Hyatt hotels in Europe, Africa, the Middle East and Southwest Asia, a position he held for the two years prior to joining Preferred Hotels & Resorts. Mr. Hirko received his B.A. in Business, with a major in Hotel & Restaurant Management, from Michigan State University. He lives in the Chicago area with his spouse and two dogs and enjoys spending his spare time running or cheering for his alma mater, Michigan State.

Please visit www.preferredhotels.com for more information.

Mr. Hirko can be contacted at 312-542-9245 or rhirko@preferredhotels.com

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.