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S. Lakshmi Narasimhan

While RevPAR is a powerful measure of how hotel assets are delivering optimum Room Revenues, often they may not be telling the entire story. The channels of distribution being adopted by a hotel to generate room revenues may have varying costs to them. Accounting methods make these costs be disclosed among expenses in a hotel Income Statement. Factoring in those costs in the calculation of RevPAR provides a realistic picture. Is your hotel taking this critical step? In other words, are your channels delivering optimum Room Revenues net of costs? READ MORE

Paul van Meerendonk

Revenue technology is following the evolution of the mobile phone. What once was just a rate-setting and forecasting tool is now the convergence of all data insights you need to influence revenue productivity, whether at your desk, on the road or at home. An RMS visualizes thousands of data points, and an RMS mobile app or voice-enabled assistant, like Amazon's Alexa, make access to that data simple, convenient and possible from anywhere with an internet connection. READ MORE

James Downey

Do you know how to read a balance sheet and know the value of your hotels assets, liabilities and equity? Can you analyze an income statement as to its profit, revenues and expenses? Do you collect credit card charges on a timely basis? If you answered no to any of these questions, you are at a distinct disadvantage from a financial perspective. This article will explore the financial red flags that creep up on you that can be monitored and controlled before disaster sets in and therefore is too late to take corrective action. READ MORE

David Chitlik

The decision to appeal a hotel's property assessment for tax purposes is only the first of a series of judgments before the case is resolved. Who will defend the appeal? Based on what facts? How far is an appellant willing to go to gain a remedy for the assessment? In order to be successful in this effort, particularly if the appeal involves a large amount of money or is extremely complicated, the hotelier would be wise to seek out expert guidance. With this decision, new questions arise of where to find that guidance and how much it will ultimately cost. READ MORE

Paul van Meerendonk

The evolution of revenue management has taken hotels from dynamic pricing of transient rates to a holistic strategy of maximizing profitability across multiple revenue streams. Revenue management has moved far beyond the Microsoft Excel expert in a small back office and now involves multiple stakeholders from several departments, all influencing overall revenue strategy with each of their key areas of function. Today's hotel leaders are tasked with converging the traditional roles of sales, marketing, meetings & events and revenue management with an inclusion of other departments like F&B, banquets and finance. READ MORE

Paul van Meerendonk

Over the years, the pool of data sources hotels utilize within their business strategies has grown exponentially larger. The propagation of its importance within the development of short- and long-term vision and strategic planning has also become more commonplace than in years past. Innovative breakthroughs in technology and analytics mean organizations continue to see more opportunities to leverage data in meaningful ways. However, the alternative side is the steep volumes of data can be dauntingly large and intricately complex. Organizations that focus on using the right types of data -- with an infrastructure that can effectively leverage it -- can confidently reach ambitious profit goals. READ MORE

Gino Engels

It's easy to feel intimidated by today's travel distribution landscape. Travelers are changing the way they buy, new players are disrupting existing monopolies, OTAs are buying each other, and hoteliers have access to so much data that it's become a full-time job to interpret it and put it into use. The key is to find ways to interpret this data, act on it quickly and leveraging technologies that can help with this. As long as you continue to strive to understand the market - and, most importantly, your guests - you'll be able to tap into the opportunities that, as a whole, make all the difference to your bottom line. READ MORE

David Lund

What information can I get from my monthly P&L to understand my business and make better decisions?" and "What's going on in my business?" The latter is the better, more applicable, piece for an operations manager who has a healthy sense of curiosity and a leader who wants to make a difference. These are the muscles you need to develop as a hospitality financial leader. It is not up to someone else (accounting) to chase you down and to get you on top of your numbers. It is the other way around. The sooner you see the opportunity in all of this the better for you and your career. It is not difficult. If someone stands in your way, find a way around them. Most leaders will not naturally do this, will you be one that does? READ MORE

Bhanu Chopra

You may have a sizable stock of inventory. You may also have revenue managers who know how to leverage pricing strategies. Moreover, you may have access to a variety of channels to reach your target market. But, is that all you need to ensure high revenue? Despite having all these goodies, your hotel's revenue-making potential can suffer on account of revenue leakages, which often go unnoticed. Avoiding them will make an immense difference to your hotel's bottom line. But, before we get there, let us understand these glitches in detail. READ MORE

David Lund

This aricle is an overview of a six-month financial leadership project that I recently completed at a full-service hotel. The project consisted of six half-day hospitality financial leadership workshops delivered in-house and monthly 1-1 leadership coaching appointments with the 15 managers assigned to the program. Each month of the project we completed a group workshop and each manager had a coaching meeting with me. The project goal had five measurable elements. It was to get the managers and leaders of this hotel to complete their monthly departmental financial forecasts, track their results throughout the month, adjust their spending on labor and supplies according to business volumes, review their month-end statements for accuracy and finally write their departmental monthly hotel management commentary. In other words, get the core management team to do these tasks each month while improving forecasts and the hotel's financial results. READ MORE

Mark Heymann

Hotel organizations dutifully churn out reports filled with the ever-growing volume of data technology has made available, creating information overload for the managers tasked with analyzing them. By streamlining the process and sticking to the numbers that truly matter, managers make smarter decisions that have real impact on their hotel's business. The more management shares effective data with the staff, the better performance will be. Monthly or quarterly review of certain numbers can be used as a tool to motivate employees. As the saying goes, people do what you inspect not what you expect. READ MORE

Bhanu Chopra

You may have a sizeable stock of inventory. You may also have revenue managers who know how to leverage pricing strategies. Moreover, you may have access to a variety of channels to reach your target market. But, is that all you need to ensure high revenue? Despite having all these goodies, your hotel's revenue-making potential can suffer on account of revenue leakages, which often go unnoticed. Avoiding them will make an immense difference to your hotel's bottom line. But, before we get there, let us understand these glitches in detail. READ MORE

David Lund

In the hotel business payroll is the number one cost. STR recently reported that labor made up 50% of revenues for a sample of over 4,000 hotels of all types and sizes. This should not be even a little bit of a surprise to anyone. Many hotels are well north of the 50% mark. We have all become accustomed to serious REVPAR growth year over year which has taken the bight out of wage and expense increases. But what happens when the REVPAR bubble bursts. We all know it's not a matter of "if" it bursts it's when will it burst. READ MORE

Nicholas Tsabourakis

Latest developments in technology and added pressure in the market have advanced Revenue Management to acquire a more strategic role with emphasis in maximizing all components of the customer journey. And while there are still challenges in the adoption of such a business practice it is an exciting time for Hotel Revenue Managers. Technological advances have led to systems with enormous potential in handling the complexities of managing various revenue streams due to their abilities in advanced problem solving, reasoning and perception. This will elevate the role of RM and empower it to reach its full potential whilst allowing the whole organization to benefit from its concepts. READ MORE

Paul van Meerendonk

The evolution of revenue management has taken hotels from dynamic pricing of transient rates to a holistic strategy of maximizing profitability across multiple revenue streams. True hotel profit optimization leverages multiple hotel functions to ensure goals are aligned to achieve optimal results. It encourages hotels to intelligently decide which business to accept across multiple revenue streams at all times, based on greatest overall value to the asset. This holistic approach to revenue management goes beyond guest room rates and maximizes profits from the strategic management of other key hotel revenue streams; like sales with group bookings and meetings & events teams with catering sales. READ MORE

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Coming up in October 2020...

Revenue Management: Maximizing Profit

Hotel Revenue Management continues to evolve at a blistering pace. Driven by technological innovation and new distribution channels, there are some dynamic opportunities for expansion in this fast-growing field. The technology is primarily designed to help revenue managers further refine their operations and pricing models to maximize hotel profit. For example, hotels can't be all things to all people, so a key strategy is to precisely identify their target audience. By employing geo-targeting techniques and analyzing behavior such as previous bookings, on-property purchases and online shopping practices, there is an increased capability to define guest demographics. By segmenting customers in more specific ways, hotels are able to create more personalized experiences which, in turn, allow managers to optimize their room rates. It is also an effective way to fulfill the unique needs and preferences of the individual. Another methodology is to consistently monitor the competition's pricing strategies. There are software tools that analyze a competitor's current rates, and then allow a hotel to make its own pricing adjustments. It is also a useful means to conduct forecasting models. Other technologies that are being integrated into a revenue manager's toolkit include Artificial Intelligence in the form of automated algorithms, and Voice Recognition (VR) for data inquiries, rate changes, and booking behavior. Predictive and analytic software programs are also being leveraged to provide more forward-looking data, instead of the usual reliance on historical performance. These metrics allow managers to be more proactive - rather than reactive - with their revenue strategy. The October issue of the Hotel Business Review will examine these developments and report on how some leading hotels are executing their revenue management strategies.