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Naseem Javed

Today, there is a major shift in thinking on how to build a major corporate personality. To play the game, one must clearly figure out the secret powers of e-commerce and the role of new technologies in contrast to traditional print and old-fashioned, mass-advertising driven models. During the last century, mega corporations throughout the world followed the prime rules of building corporate image and name identity in the strictest sense. Their goal was simply to achieve an elite, world-class image by having their name and logo brightly displayed on skyscrapers in every city. They ran massive advertising campaigns to promote their identity and claimed ownership to specific colors and designs, all in an effort to create a single visual global icon. They used every opportunity, from naming stadiums to sponsoring parades.The objective was simple: to demonstrate their exclusive power and their domination by big image. Read on...

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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.