To say that the world has changed in the past ten years is an understatement. A decade ago, mobile phones were still primarily used to make phone calls, a 'tablet' was something you took for a headache and 'TripAdvisor' was only in its infancy. Even more dramatic is the change we've seen in how hotel rooms are booked: from traditional channels to online travel agencies to making reservations from the palm of your hand. Armed with more options for booking and research than ever before, plus the ability to share their experiences in real-time; consumers are in control and it's crucially important to attract the right guest at the right time for the best rate. READ MORE

In this era of “big data” revenue managers have access to more data than ever before. However, before rushing to add yet another data source into the mix, revenue managers need to critically evaluate its capacity to provide incremental value over and above existing data sources. They also need to need to carefully consider the level at which to leverage that data source, whether for tactical pricing decisions, or as a support for more strategic revenue management-related decisions. In this article, I take a look at some of the new data sources that are receiving attention in the hotel industry, and use them to demonstrate that “more” may not always be better. READ MORE

As our world becomes more and more connected, the terms used to describe “Cloud-Based” computing seem to blur into abstraction. In this article, I'll clarify the terms "Cloud computing" versus "Software as a Service," often referred to as SaaS. In some ways, it's like describing two sides of the same coin. However, there are some clear distinctions, along with risks and rewards, to keep in mind. So… what is the difference between Cloud Computing and SaaS? Is there a difference? READ MORE

Information is the currency of all organizations. How you handle access to that information within your organization is what determines if you are an innovative leader in your industry or simply another member. Initiating a Revenue Management culture that provides free-flowing information across departmental lines is the key. Data, information and knowledge can no longer be kept isolated by department and used on a “need to know” basis. Marketing, Sales, Operations, Guest Services…all elements of hospitality are tied together and Revenue Management can work with all departments to better guide the organization through the ever changing competitive landscape. READ MORE

The battle to tilt a traveler's decision in favor of a specific brand - be it for a supplier or an intermediary - continues to get intense. The focus is on identifying a "lead" as soon as it emerges in the digital domain, and that's where travel metasearch engines are showcasing their prowess. A travel supplier such as a hotel chain or airline needs to plan astutely for real-time hotel inventory availability/ pricing, and optimize campaign, budget and bid management. Since suppliers are dealing with an increasing number of traffic generation sites, associated costs have gone up. No category is feeling this more keenly than hotels. And importantly, a large component of this expenditure is going into competing with OTAs, either via brand.com or other channels such as metasearch. This is unproductive since travel suppliers are paying multiple times for the same conversions! How much to embrace the metasearch phenomenon is a topic of debate at hotel distribution conferences such as those held by HEDNA in January and June of this year. READ MORE

Capital allowances are a widely misunderstood routine tax relief that taxpayers regularly fail to maximise. An in-depth analysis of capital expenditure on property assets, including their acquisition, can yield HMRC approved reductions in tax. Poorly defined terms for plant and machinery in legislation gives rise to the undervaluing and misallocation of qualifying assets within tax computations. Reviewing historical and current capital expenditure can result in significant tax savings in current years. READ MORE

Packages are valuable marketing components that increase hotel awareness, create value for the guest, and often times drive room nights over need periods. The effectiveness of the package often is dependent upon the elements associated with the overall experience as well as the price point at which the package is offered. READ MORE

You've heard the expression - "better late than never!"... Well it appears this expression may apply to a majority of the traditional hotel industry when it comes to embracing total revenue optimization. After years of dipping its toes in the water, the hospitality industry appears ready and willing to jump headfirst into a concept that, for more than a decade now, has helped many casino-hotels take their revenues to new heights - anywhere from 5- to 15-percent increases! Below are some of the key practices of casino-hotels that are applicable for traditional hotel to incorporate- READ MORE

Since becoming an integral, almost essential aspect of daily life, social media has grown into a force with such powerful influence that business reputations can either be made or broken on the whim of a single comment. This is due in part to its ability to instantaneously spread the opinions of countless users to both existing customers and prospects. Far from being an uncontrollable force however, for hotels the ability to influence the nature of social media posts goes hand-in-hand with the quality of services that are offered, along with the level of value that guests associate with a given service. For hotel team members, the objective is therefore centered on the ability to effectively match individual guest needs with amenities that provide the most value. By understanding and applying effective up-selling strategies, hotel employees not only foster guest satisfaction while guests are on-site, they also create a positive experience that, when shared on social media by their guests, serves to strengthen brand loyalty while alerting future guests to the advantages of opting for enhanced value services. READ MORE

How can we increase guest satisfaction scores in our establishments? The following article touches base on an opportunity that will help your establishment increase your guest satisfaction scores not just from a macro-perspective, but also from a departmental point of view. What we observed is that educating your staff and involving them in these guest satisfaction scores in more detail, will actually be able to engage your employees better and also they will be able to understand a lot of correlation of what they do, in conjunction with guest satisfaction and the service experience. By doing this, you may be able to increase guest satisfaction scores by an average of 5% overall, annually. READ MORE

Revenue Management has been defined as ensuring the sale of the right room to the right customer at the right time for the right price. While the hotel industry has made strides in achieving the goal of revenue and profit optimization at a faster and more methodical pace than before, today's guests have a greater influence on pricing and revenue management tactics thanks to the abundance of information and tools via social media. The following discusses the growing correlation between online guest reviews and rate positioning. READ MORE

As technology is rapidly evolving, the hotel industry is fighting an ever-changing battle to keep up, working to bring an ease of communication with travelers and maintain a positive image with customers. Heightened dramatically in the last several years, social media has become more prominent with guest reviews, ownership and content. Typically, a hotel's senior leadership is focused on overall reputation management, with the revenue management team optimizing all user-generated content, including social media outlets. READ MORE

The use of price and non-price information like user generated content (UGC) to make a purchase decision could vary by segment. Business travelers, for example, which represent a significant and valuable source of business for many hotels, could behave very differently than other segments, impacting how managers would price or position the hotel to attract this valuable segment. In this article, we will present the results of a study that investigates how business travelers tradeoff between price and non-price information, and compare that to a previous study in a leisure context. READ MORE

The revenue management industry within hospitality is evolving rapidly. Advancements in revenue management software have made it infinitely easier for hoteliers to understand, anticipate and capitalize on consumer behavior. Until now, however, revenue management concepts have primarily been applied to guestrooms. With group business representing up to 40 to 60 percent of revenue potential for many hotels, hoteliers know their catering and banquet profits are not as high as they could be, and that a more holistic approach to meetings and events revenues is called for. With function space revenue management systems in the pipeline, the time is ripe for hoteliers looking to optimize function space revenues to lay the groundwork necessary for effective implementation. READ MORE

While it still retains its price-setting function, hotel revenue management has become more integrated with other hotel operations, including function space and restaurants. Additionally, revenue managers must take into account the industries diverse distribution channels, particularly those provided by online travel agents, which themselves offer different pricing and distribution strategies. Two other frontiers for revenue management are making use of the increasing flow of customer information from big data and managing the effects on price and demand that result from customers' postings on social media. READ MORE

The Hilton Los Angeles Universal City, using a combination of tax incentives, rebates, and $7 million in financing utilizing the LA County PACE (Property Assessed Clean Energy) Program, has undergone a significant transformation, embracing energy efficient upgrades and water conservation measures. The cost of the Project was $7 million while the value of the upgrades and the additional value of added net operating income was in excess of $12.5 million and the value of the property increased by more than $30 million. Overall, the project addressed a number of concerns, including deferred equipment maintenance, compliance with the Hilton global design standards, and adherence to sustainable practices. READ MORE

The hotel sector has been booming, feeding on the rebound of the global economy. Some asset managers and hotel executives in investment forums claim the industry is peaking. Development pace is strong, funding deals seems to be a problem of the past, rolling out new brands seems to be a growing trend. With more disposable income, more information and faster and cheaper capital flows, the speed of change increases, market cycles are shorter, time to market is cut-throat. There are "new kids on the block", East and West, North and South. Stakes are high. For the army generals (Luxury Hotels), they are higher… READ MORE

Anyone who has worked in the hospitality industry for any period of time would know that - in hotels of all sizes - the Director of Revenue Management and the Director of Sales are often completely at odds with one another. No matter how experienced or knowledgeable, there is generally a confrontational relationship even over the simplest pricing issues. If one says to 'offer a discount', the other says to 'raise the rates'. If one suggests a focus on group sales, the other suggests transient sales instead. No matter what the issue, it is often very difficult to get these two employees to see eye-to-eye (or rate-to-rate) and it can create a huge problem for hotels. READ MORE

The evolution of location based services and applications is changing the way that hoteliers think about revenue management. With apps that will initiate contact with the guest, hoteliers will have the ability to fully customize the guest experience, from the time the guest books a room, to after the guest has checked out. There will be a significant impact on "big data", as hoteliers will have access to their guests' habits before, during and after their stay. Revenue managers will be able to use this data to personalize offers for guests and increase revenue. Overall, it seems that location based services are very much at home in the hospitality industry, and are one new technology that every hotelier needs to keep a close eye on. READ MORE

Revenue management continues to grow in importance across brands and independents, with hotels of all sizes. Strategies for success abound, but who is executing the strategy at the hotel level? Do the frontline staff members understand what must happen to the rate at their property from day to day, even hour to hour, in order to assure financial success? Drew Salapka maintains that you must conduct training with not only the hotel's sales they need in order to be successful team, but also the front desk associates. They must be equipped to understand and work with revenue management. READ MORE