Total Revenue Optimization: Lessons Learned From the Casino Industry
By Angie Dobney Vice President of Pricing & Revenue Management Services, Rainmaker Group | October 19, 2014
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.
A Focus on Value?
It's been eleven years since Dr. Stowe Shoemaker, Dean of the William Harrah's Hotel School, Las Vegas, penned "The Future of Pricing in Services" in the Journal of Revenue and Pricing Management. In the article, Dr. Shoemaker suggested the hospitality industry would need to reorient its thinking about what constitutes value and redefine the term as it applies to the future pricing of services.
Dr. Shoemaker asserted that, going forward, the hotel industry must: