All posts in Total Revenue Management

14
Jan

3 Hotel Freebies That Destroy Profit

Categories: Food and Beverage, Pricing, Restaurant, Revenue Management, Total Revenue Management
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by Robert Hernandez

Many hotel marketing and promotional ideas sound like they should work when being thrown about in strategy meetings, but when the PMS/POS data is actually analyzed intelligently you find that they do more harm than good. Based on my work with resorts over the past eight years, I can safely say that these three common freebies simply won’t deliver any value to most properties. Free Alcohol.  This is the easiest way to give away profit inadvertently.  At the last resort where Read more

14
Nov

8 Ways the Best Revenue Managers Have Re-Defined their Job

Categories: Analytics, Budget, Data, Forecast, Guest Analytics, Hotel Analytics, OTA, Revenue Management, Strategic Planning, Total Revenue Management
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by Robert Hernandez

The 25,000 or so Hotel Revenue Managers around the world are self-dividing into two distinct categories: those that are well prepared(or preparing) for 2024 and those that are well prepared for 2004. Fourteen years ago, the global lodging industry returned to positive profit growth after three years of declining revenues. Hotels began their four year ride(2004-2008) to historic levels of revenue and profit. In 2004 TripAdvisor, HomeAway and dozens of OTAs launched to capture the new opportunities in travel that Read more

14
Jul

Revenue Managers have taken the Five Ps away from Marketers

Categories: Analytics, Data, Forecast, Guest Analytics, Hotel Analytics, Marketing, Pricing, Revenue Management, Spa, Total Revenue Management
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by Robert Hernandez

For years, we’ve all been reading about the need to coordinate the activities of Revenue Management and Marketing into one synergistic Revenue Generation process. In practice what is really happening in many hotel companies is that the activities of both departments are not merging, but they are instead becoming the domain of Revenue Management. That RM is “taking” away many of Marketing’s traditional roles makes sense. As marketing has become more digital, it has inevitably become more data driven, and in most Read more

14
Dec

From PAR to PAC: The Big Revenue Management Reset

Categories: Analytics, Guest Analytics, Hotel Analytics, Per Available Customer, Revenue Management, Total Revenue Management
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by Robert Hernandez

Today, a revolution is happening in hotel revenue management as hoteliers with the highest profit expectations are beginning to follow the customer instead of the product.  They are using advanced analytics to dump their dependence on the crude “Per Available Rooms” (PAR) averages and have begun the move to measure their world by predictive indicators based on “Per Available Customers” (PAC).  This is the Big RM Reset.  It is a seismic shift that is reframing the Hotel Revenue Manager’s world Read more

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