Hotel Profit Discovery

Hotel Profit Discovery Ideas

Why I Push for More “Advanced” for Revenue Managers

Categories: Analytics, Data, Pricing, Revenue Management
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Writing can be very therapeutic and this is one of those posts where I will vent. Within 15 minutes of arrival, on the very first day of my first consulting gig for a hotel I was told by the company’s CFO to keep my analysis at “the lower end of the sophistication range.”  He explained that the hotel industry has many “service” types that rose to managerial positions without getting much exposure to business analysis techniques and would therefore not Read more

The Core RM Concept Every Brand Revenue Manager Should Know, But Doesn’t

Categories: Pricing, Revenue Management
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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

Lack of Data Science Skills Among Hotel Revenue Managers Will Affect Salaries

Categories: Analytics, Big Data, Data, Guest Analytics, Hotel Analytics, Revenue Management, Total Revenue Management
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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

7½ Habits of Highly Effective Hotel Revenue Managers

Categories: Analytics, Data, Revenue Management
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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

Pace Report Enhancement #1 – Variance Components

Categories: Uncategorized
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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

 

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