Would it make sense to only know how to do math using a calculator? Even in our hi-tech society, it is not OK to NOT understand the fundamental processes of adding, subtracting, and multiplying just because you have a machine than can figure it out for you. I think most of you would agree with that opinion. Yet, in the Hotel Revenue Management function, the most mathematical function of the hotel industry and one of the most mathematical functions of any industry, most Read more
The pressure is mounting for Hotel Revenue Managers to provide data-driven insights that will lead directly to higher profit. Long gone are the days when RM could easily boost revenue just by joining another OTA. In fact, at some hotel companies, RM departments are now required to calculate the ROI of RM activities. What aggravates the problem is that the analytics talent gap in Hotel RM is only getting worse. We looked at 5,000 public LinkedIn profiles to find out what percentage of Read more
As a consultant for Mathematical Revenue Optimization I’ve had the opportunity to work with many Revenue Managers in brands, franchises and independents. How much quantitative and programming background they have is never a concern for me because my job is to bring them up to a sophisticated level of technical competence and confidence. Still, some RMs are just a lot better at their jobs than others. What I have learned through the years is that the most successful Revenue Managers Read more
Sometimes the simplest math can deliver the most powerful analytics. When analyzing variances for revenue performance, there is one powerful metric that is easy to calculate and so easy to explain that everyone will be impressed when you use it. The Variance Analysis Components metric will let you show what portion of a variance in sales or expense is attributed to changes in occupancy and what portion is attributed to changes in price. Download the file below and follow watch this Read more
Sorry to interrupt your reading, but if you give us your email address, whenever we write something useful about Revenue Management, Pricing, Marketing, or Hotel Analytics, you'll receive a notice in your inbox.