Library Archives

 
James Downey

Planning on expanding your hotel's rooms division? There are many questions which you must answer first. Will the expansion prove profitable? Will construction costs be manageable? Will the market respond positively to the expansion? Hotel operators must weigh the benefits and costs associated with such a daring move in expanding their rooms division. The decision to expand is a very expensive, and time-consuming venture. Considering the factors presented here may help hotel owners and operators to make their room expansion plans go as smoothly as possible. This article will discuss those benefits and costs so as to assist with this physically and financially oriented decision. Read on...

S. Lakshmi Narasimhan

Owners are keen that employee workforce is kept engaged and motivated always with a fair compensation package, good development opportunities and a regular acquisition of new skill sets through training and other methods. Nothing upsets the owners more than a high employee turnover ridden workforce which is struggling to meet the demands of customers. Owners will want that the top management beginning with the CEO or head of the unit drive the succession plan process. This is enough evidence of the power of an effective succession plan process in developing and grooming an employee complement with requisite skill sets to meet the business challenges in future. Read on...

Nicholas Tsabourakis

Optimization, a cornerstone of Revenue Management operations, is the action of making the best or most effective use of a hotel’s inventory while guiding the simultaneous action of revenue and profit growth. It ensures the best and most effective use of strategies and tactics in order to balance supply and demand and deliver the optimal business mix. Optimization relies on intelligence gathered during forecasting, a process that indicates changes or variations in booking pace of a segment or segments, in order to deliver an updated action plan. It then moves on to investigate external factors that influence demand providing thus with a complete view and understanding of all dynamics. Read on...

Mark Heymann

A sophisticated labor management system can do more for a hotel than control labor costs. By enabling more accurate forecasting—and adjusting staffing to accommodate its ebbs and flows—the right system can double as a revenue optimizer in key profit centers. This article explains how to use an LMS as an intelligent tool for maximizing revenue in a hotel’s food and beverage operations. Read on...

Lily Mockerman

Every hotelier has struggled with a dreaded slow season. Many have struggled through years of an economic downturn only to come out victorious on the other side - if weathered and savvier from the experience. The secret weapon to beat these downtimes is ancillary revenue streams. With more than 15 years of experience helping hoteliers combat market challenges and drive revenue, Lily Mockerman, founder and CEO of Total Customized Revenue Management, LLC (TCRM), shares her hard-won advice to help hoteliers innovate when times get tough and reach rock star status in ancillary revenue. Read on...

David Chitlik

Capital expenses are driven by numerous factors in the hotel industry. Projects are undertaken to improve the property, maintain or repair the property, and as requirements of the hotel flag’s brand standards. While the hotel owner considers these expenses as preserving or in some cases preventing the loss of revenue, tax assessors view the capital expenditures as improvements to the property that will drive revenue growth and increased value. In this article, Altus Group’s hospitality tax specialists explore how to manage these contradicting opinions of Cap Ex through their combined seventy years of experience in property tax. Read on...

Lily Mockerman

Sharing the joys and challenges of driving hotel profitability during high seasons is revenue management professional and industry thought leader Lily Mockerman. Mockerman, president and CEO of leading revenue management company Total Customized Revenue Management LLC (TCRM), delves into the proven strategies and tactics to increase overall profits when rooms are at or near capacity. By approaching this challenge with a strong understanding of unconstrained demand, hoteliers can identify those times that limiting less profitable channels will actually increase overall profitability. This ensures the plan is achieving optimal performance levels, measuring results and proactively planning against common pitfalls found in high-demand strategies. Read on...

Nicholas Tsabourakis

Accurate demand forecasting is extremely important for a hotel as it drives strategic planning aimed at optimising sales, increasing operational efficiency, improving customer service and maximising profit. Predicting what the customer wants, anticipating the sales of products and services helps managers understand revenue opportunities and make informed decisions about pricing and business growth strategies. It involves attempting to gain an insight into the future while relying solely on past trends and present events. Forecasting is the scientific version of crystal gazing and while future events may deviate from past trends, the intelligent insights obtained from forecasting, provide a reliable platform to build upon. Read on...

Paul van Meerendonk

The concept of a revenue productivity engine begins with a theme lifted from W. Timothy Gallwey’s best-selling book, The Inner Game of Tennis. Tennis is not only a game of endurance and skill, but also very much a game of psychology. The same can be said about creating your revenue productivity engine. It’s imperative to understand your revenue psychology—making sure your revenue performance will equal your revenue potential, minus any interferences - before setting out on the journey. Operating in the here-and-now ensures you crystalize your goals throughout the organization. Using an analytics framework is the sure-fire way to instill a culture that operates on data proven by science and reduces overthinking which allows inconsistent judgment to cloud the vision. Read on...

S. Lakshmi Narasimhan

Owners as stakeholders of a hotel asset realize that continuous revenue generation and profit retention are the only paths to getting a decent return on their investment. Not for nothing have they poured big dollars in their hotel project. However, it is one of the ironies of diminishing revenues of a failing enterprise that often the business never looks right under their noses - at their capital commitments to understand the revenue erosion. That capital budgeting literally is a blueprint to determining how well an enterprise uses its assets to generate revenues is nevertheless a grossly underutilized phenomenon. A look at how to harness this powerful strategy. Read on...

Inger Oliver

From a 'set it and forget it' approach to dynamic daily rates, revenue managers have seen a dramatic shift in hotel pricing. Learning from the airlines decades ago, the hospitality industry quickly realized it needed to build a yield management system to spot trends over time. But the process of selling the right room to the right guest at the right time didn't end there. Four key factors - technology, demographics, consumer behaviors and markets - made the process even more complex. In this piece by hospitality veteran Inger Oliver, learn how studying the right insights can help revenue managers succeed in today's complex marketplace. Read on...

Paul van Meerendonk

Cultivating asset value for resorts is all about capturing and capitalizing on the unique revenue opportunities their distinctive business models create. However, compared with standard hotel operation, where revenue management processes are well-established based on industry-wide practices, resorts are challenged by much more complicated business models and a diverse range of revenue streams. Read on...

Nicholas Tsabourakis

While Total Revenue Management is primarily focused on implementing a holistic approach to increase your hotel revenues, the fact of the matter is that none of this is possible if you don't have the right technologies by your side. Whether or not your hotel has the resources of a five star international chain, it is essential for you to start using the latest technologies to make the most of a total revenue management approach. Using the latest software and systems will allow you to collect important and high quality data in a timely manner, and enable you to use this data to your advantage before it becomes obsolete. Read on...

Nicholas Tsabourakis

Market segmentation is of particular importance in the complex and competitive hospitality world of today because it does not only help put things in perspective, but also ensures that you won't have to waste money and efforts in areas that won't bring any positive results. Cost of acquisition and contribution by revenue source are extremely important factors that need to be taken into consideration when managing a business in the highly competitive and ambiguous hotel management industry, which is another reason why market segmentation needs to be leveraged. Doing so will not only help you understand where your customers are coming from, but it will also be easier for you to figure out which areas need improvement and which customer groups you should focus on more for greater revenues. Read on...

Lily Mockerman

Revenue management professional and industry thought leader Lily Mockerman shares expert tips that will help struggling hotels easily and quickly improve total revenue management to increase profitability. Ms. Mockerman is acquainted with hotels' biggest revenue challenges, which often create amplified effects for already struggling hotels. Taking an inside look at the common problems brand and independent properties face, along with their unique advantages as well as disadvantages, Lily shares five tested tips that will help both types of properties achieve effective, measurable results. Read on...

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Coming up in April 2019...

Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.