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Profit Management Vs Revenue Management. What Do Hoteliers Need to Measure?
By Ahmed Mahmoud, Founder, revenueyourhotel.com
Your property's bottom line is defined and measured for success if you as the property revenue manager implement a good revenue management strategy with the help of other departments in your property. The strategy of implementing good revenue management has been tried and approved of success is true through the regular revenue management measurement, but there is another and more efficient way to influence your property's yields. We call the strategy profit management which determines a property's net revenue after taking into consideration the costs of acquisition by channel, opportunity costs, and target audiences.
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| TRENDING THIS WEEK |
Technology Can Help When Hiring a Newcomer to Hospitality
By Adria Levtchenko, CEO & Co-Founder, PurpleCloud Technologies
Hospitality has always provided a great entryway to the world of work for younger individuals, while also attracting older individuals who wish to embark on a new career in an exciting service-driven industry. This is fortunate at a time when the industry faces a labor shortage, especially in areas like housekeeping. This article discusses how available technologies, including today's best hotel task optimization software platforms, can help bring newcomers to hospitality on board and up to speed quickly, and propelling those inclined on to a rewarding career path.
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This week's Top Pick... |
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5 Things Every Property Management Company Should Consider During Budget Season
By Lisa Bonanno, Vice President, Marketing, Knowland
Hotel property managers are tasked with ensuring that the ROI goals for their portfolio of properties are met. As part of that responsibility they are an integral to the budgeting process. Budget season is the perfect time to evaluate the efficacy of existing group sources of business to determine if they will continue to produce the same level of return going forward. As we approach economic uncertainty, it will be important to focus on controlling the bottom line and the impact derived from group business.
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DAILY HEADLINES - Wednesday Oct 16, 2019 |
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More from our online Library Archives... |
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Hotel Distribution: Stop Predicting, Start Diagnosing
By Dori Stein, Chief Executive Officer, Fornova
Modern hotel distribution is dominated by online channels, across both direct and indirect bookings. While the internet has increased complexity and created new challenges, it also brings a number of new opportunities. Activities and transactions in the digital world can be monitored, tracked and analysed. And unlike other disciplines, hotel distribution is uniquely positioned to work with forward-looking data. Hoteliers can get a true picture of how the hotel inventory is being sold and its impact on future bookings. Early wins are going to hotels that are recognising the opportunity to be more diagnosis-led and adopting an agile mindset.
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The Intersect of Cloud Computing and Hotel Revenue Management
By Jon Higbie, Chief Science Officer, Revenue Analytics, Inc.
For years, hotels have housed their Revenue Management systems on their premises. This was possible because data sets were huge but manageable, and required large but not overwhelming amounts of computing power. However, these on-premise systems are a thing of the past. In the era of Big Data, the cost of building and maintaining an extensive computing infrastructure is incredibly expensive. The solution - cloud computing. The cloud allows hotels to create innovative Revenue Management applications that deliver revenue uplift and customized guest experiences. Without the cloud, hotels risk remaining handcuffed to their current Revenue Management solutions - and falling behind competitors.
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Revenue Management: There are Two Sides to Every Story
By Bonnie Buckhiester, President, Buckhiester Management Limited
The saying goes that there are always two sides to every story. In the hotel business this couldn’t be truer when examining the relationship between operator and owner, or in many cases between operator and asset manager. Both want to optimize performance, but often this requires a careful balancing act between guest satisfaction and profitability. If a hotel is exceeding expectations – i.e. beating budget, surpassing last year, stealing market share – one might ask “does that mean the revenue management effort is optimal”? If a hotel is falling short of expectations, does that mean that somehow the revenue management effort is lacking?
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November 2019: |
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Architecture & Design: Biophilic Design |
The hospitality industry is constantly evolving to meet and exceed guest expectations. As a result, hotels are always on the lookout for new ways to improve the guest experience, and architecture and design is an essential part of this equation. Bold design is often the most effective way to make an exceptional first impression - an impression guests use to distinguish between brands. One design trend that is being embraced worldwide has become known as “Biophilic Design.” Biophilic design is based on the concept of biophilia, which is the theory that human beings have an innate tendency to seek out nature, natural elements, and natural forms. Biophilic design is more than hotels simply adding a surplus of plants; it involves incorporating specific design elements into a hotel in order to imbue it with a sense of wellness and well-being. Some of those elements include exposure to natural lighting; views of nature and rooms with a view; natural architectural patterns; salvaged or reclaimed woods of all types; reclaimed metals; sustainably sourced stone; living green walls and vertical gardens; and direct and indirect exposure to nature. Hotels that have incorporated biophilic design into their properties are reaping the benefits associated with this trend including reduced stress responses, better air quality, lower energy costs, and more positive guest reviews. Biophilic design has also been shown to improve guest moods and to satisfy consumer demand for environmental responsibility. Savvy hotel owners and managers are aware that nature-inspired elements enhance their guests' comfort and well-being, which is why this trend is becoming so prevalent. Biophilic design is just one topic in the fields of hotel architecture and design that will be examined in the November issue of the Hotel Business Review.
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Revenue Management: Focus On Profit
