Library Archives

 
Bob Carr

Processing payments is a huge expense, but there are three key things you can do to gain control of that expense. First, identify the "junk" fees many card processors charge so you can protect against them and save money. Next, learn how to better understand your statements, and ask your processor, accountant or a competing processor to explain any fees you don't understand. Finally, select a payments processor who will become a partner that can help you navigate the complexities of card processing and control the associated costs. Read on...

Mike Kistner

Based on the three to five billion transactions Pegasus Solutions is processing each month for more than 95,000 hotel distribution customers worldwide, leisure travelers are regaining confidence. In fact, booking volumes through the alternative distribution systems (ADS), made predominantly by leisure travelers, climbed +13.93% above 2009, +9.13% above 2008, and a staggering +33.83% above 2007 levels. Future booking data in the same channel evidenced positive growth in reservations on the books through mid-2010. That means the bookers for your rooms are there, and continuing to come back. The question becomes, how are you going to get them? The answer is through revenue management driven by actionable competitive intelligenc Read on...

Jean Francois Mourier

General managers and hoteliers face the challenge of synchronizing all of the internal processes of a hotel every day, coordinating the F&B department with the front office and sales, all while making sure engineering keeps the place running right. It's a tough job! One of the greatest challenges facing hoteliers and hotel managers in terms of getting their symphony well-tuned is synching their sales and revenue management systems. This article provides GMs and hoteliers with suggestions on how to properly integrate their sales and revenue management systems to ensure optimal revenues, a must in today's tough market. Read on...

Jean Francois Mourier

The recession ushered in new era of hotel discounting. From free nights to one penny rooms, hotels were literally giving away the house. During a recession, discounting may work to bring in business but today, as the travel market begins to rebound, discounting is not the right pricing strategy. This article will examine the real economic impact of discounting and how discounting can not only eat away at your bottom line (or RevPAR), but also erode your customer base and brand image. The article also offers alternative suggestions on ways to increase RevPAR without the slash-and-burn mentality of deep discounting. Read on...

Bob Carr

Accepting credit and debit cards for reservations and room payments is a way of life. However, recently, you may have noticed the mounting cost of these transactions. In fact, you may be paying more for card processing now than you were last month, and lining the pockets of your processor. Many processors take advantage of interchange rate increases from the card brands, which usually happen in April and October, to discreetly improve their own bottom lines at the expense of business owners while unfairly blaming the card brands. Understanding a few key pieces of information about card processing can ensure you're not spending more than you have to ¯ and help you protect your hotel's bottom line. Read on...

Jose Acosta

Although nobody can predict exactly when the economy is going to rebound nor when hotel prices and occupancies will return to previously desired levels, it is probable that there will continue to be a decline in corporate executive retreats to luxury resorts, annual board meetings, corporate sales incentive trips, and annual holiday parties over the coming year. In fact, one can only wonder about the extent of recovery for specific markets such as luxury, as well as whether there will be a recovery at all for the condo-hotel market. Having said that, it is important to pay attention to the items that will help maintain profitability by focusing on what I think are the top ten key recession survival best practices. Read on...

Jean Francois Mourier

The hospitality industry's crystal ball is, unfortunately, just as cloudy this year as it was this time last year. Though we can perhaps take comfort in the fact that those clouds are just grey instead of black and stormy, uncertainty is still the only thing that is certain for the hotel and lodging industry in general. Even with positive GDP last quarter (indicating that the recession is technically ending), hotels, resorts and other lodging properties are still experiencing depressed demand, low average daily rates and stagnant occupancy. In other words, low RevPAR. No one can know for certain whether these negative trends will persist through 2010 but following are my thoughts and projections for what 2010 has in store for the hotel industry. Read on...

Paul van Meerendonk

As the wider hospitality industry continues to face a prolonged period of economic uncertainty, hotels should be looking inwards during this time with a view to protecting and making the most out of their intellectual capital. Whilst many organizations are wisely using this current economic downturn to adequately plan for the future through improved levels of staff investment, many others are not heeding the warning signs and are instead shedding costs wherever possible. Read on...

Jean Francois Mourier

Hotels are now faced with a myriad of sales channels. Add online travel agencies (OTAs) to flesh-and-blood agents, an individual hotel website to the direct channel (which was dominated by phone bookings, pre-internet) and third-party room aggregators to global distribution systems, and you have a daunting range of available avenues for room sales. Today, the unquestioned growth leader among these channels is online. Clearly, the current size and future potential of this channel demands an innovative pricing strategy to match it. So how does your pricing strategy measure up? Read on...

Joshua Miller

Hospitality managers work hard through many different efforts to generate revenue for the property at all levels. Many are surprised to find thatheir success at this process does not always fully make it to the bottom line. The "leakage" is caused by many reasons, but most often by error and theft. Every hotel experiences these issues in some degree, impacting bottom line EBIDTA anywhere from 1% to as much as 10% or more. In this article, we discuss some areas which are at risk and how establishing an effective revenue control system can prevent them. Read on...

Brenda Fields

The concept of revenue management has been around for quite awhile, with the airline industry first formalizing it with its computerized Yield Management system. The hotel industry, although late in the game, has now made a "revenue management" position as part of its standard staffing. This position was primarily developed as a way to capture revenues generated by the increasing demand over the past decade. Now that business is significantly down, many properties are at a loss as to how to generate business and how to ensure that each room is sold at the right rate to the right market. This article will provide some tips on ensuring that you manage your rates from a position of strength for both a short term and long term pay off. Read on...

Joshua Miller

Most hotel management principles focus on enhancing revenue and improving efficiency. An assumption that many hoteliers make inaccurately is that all of the revenue they earn actually makes it to the P&L. Most hotels experience revenue slippage due to problems with error and theft. In the major divisions, revenue control practices are put in place to safeguard against these issues, but these are rarely seen or enforced in the minor operating departments. This article will focus on revenue control in the non-core focus areas of the hotel and what you can do to improve it. Read on...

Juston Parker

Revenue Management continues to change rapidly. The days of "right room, right person, right price at right time" have long disappeared. Keeping up with the latest trends and keeping staff well educated is increasingly expensive and difficult. Outsourcing a property's Revenue Management has become a real and viable solution. Revenue Managers also present challenges for a property. What is their role? What does their job consist of? In the industry, most Revenue Managers really are Reservations Managers handling the duties of both jobs. This, of course, takes away their focus from both managing revenues and managing reservations. Not exactly a win-win situation. Read on...

Juston Parker

Revenue Management continues to change rapidly. The days of "right room, right person, right price at right time" have long disappeared. So how do you really measure success at the property? Now-a-days, the margins are getting ever closer and with more and more rooms being sold at net or wholesale rates, it's ever so important that properties look beyond the top line and see how their bottom line is effected by the decisions they make. GOPPAR, or Gross Operating Profit Per Available Room solves that need and gives a valuable look at how a property is truly performing. Read on...

Juston Parker

As we go through the throws of the budget and planning season, people consistently wonder how does one look into the future to get more accurate budgetary planning and get good data for revenue strategies. Now, is always a good time to start planning. There is one fundamental difference between Revenue Management and Revenue Optimization, the former is passive and the latter is active. More than that, it's proactive. Revenue Optimization looks into the future and builds a plan to effectively create revenue and harness demand to fully return the best revenues possible. This is the goal of all who do Revenue Management (Optimization). So, what are the keys to proactive Revenue Management? What can move a property from Revenue Management to Revenue Optimization? Let's look at the process and learn how to maximize our return. Read on...

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Coming up in August 2019...

Food & Beverage: Millennial Chefs Lead the Way

Led by Millennial chefs, hotels continue to foster sustainability, sourcing and wellness within their dining rooms and banquet spaces, and by all measures, this is responsible for an increase in their revenues. In many hotels, the food & beverage division contributes 50 per cent or more to hotel sales and they are currently experiencing double-digit growth. As a result, hotel owners are allocating an increasing amount of square footage for F&B operations. The biggest area of investment is in catering, which is thriving due to weddings, social events and business conferences. Hotels are also investing in on-site market or convenience stores that offer fresh/refrigerated foods, and buffet concepts also continue to expand. Other popular food trends include a rise of fermented offerings such as kombucha, kimchi, sauerkraut, tempeh, kefir and pickles - all to produce the least processed food possible, and to boost probiotics to improve the immune system. Tea is also enjoying something of a renaissance. More people are thinking of tea with the same reverence as coffee due to its many varieties, applications and benefits. Craft tea blending, nitro tea on tap and even tea cocktails are beginning to appear on some hotel menus. Another trend concerns creating a unique, individualized and memorable experience for guests. This could be a small consumable item that is specific to a property or event, such as house-made snack mixes, gourmet popcorn, macaroons, or jars of house-made jams, chutneys, and mustards -all produced and customized in house. One staple that is in decline is the in-room minibar which seems to have fallen out of favor. The August issue of the Hotel Business Review will document the trends and challenges in the food and beverage sector, and report on what some leading hotels are doing to enhance this area of their business.