Bhanu Chopra DRIVING REVENUE WITH 3D REVENUE MANGEMENT MODEL Bhanu Chopra, Founder & CEO RATEGAIN CURRENT STATE OF HOSPITALITY INDUSTRY IN DUBAI Occupancy In Jan-Dec 15 decreased to 77.2% Vs 78.2% in the same period of 2014 Decreased by 8.7% compared to 1.3% growth in the same period of 2014 RevPAR Decreased by 7.2% in Jan-Oct 2015 compared to an increase of 2.3% the same period of 2014 ADR ARR to drop by around 3-4% in near future, impacting RevPAR likely to drop by 5-7%. Dubai occupancy, rates to Be flat or lower in hotels expected to open in Dubai next year Dubai hotel room rates Likely to continue dropping One analyst expects the drop to be 5-7% between September and December 2015 HOW DOES FUTURE LOOK LIKE FOR DUBAI HOTELS? An occupancy of 79.5% during September-December15 Vs 81% in Hotel room supply outstrips demand in dubai -www.thenatiopal.ae REAL WORLD 1: ARE YOU MOVING RATES WITH THE MARKET? REAL WORLD 2: ARE YOU TAPPING INTO THE AVAILABLE OPPORTUNITIES? MAKING THE MOST OF THIS OPPORTUNITY INCREASED RATES DURING THE EVENT LEAVING MONEY ON THE TABLE REDUCED RATES DURING THE EVENT NO CHANGE DURING THE EVENT Emirates Airline Dubai Rugby Sevens, a major sporting event in the city in December, brings an economic boom for hotels. THE SOLUTION: They implemented AUTOMATION Comprehensive action from market trends More flexible and dynamic pricing Insights into guest sentiments in a measurable way Top class account management team BUSINESS CHALLENGES : Everything was people dependent Increasing tourism means increasing infrastructure and competition Manual database affecting quick decision making Finding right people with right skill-set was hard High attrition rate; retaining these managers was troublesome Inability to respond to dynamic market changes YoY increase 2014 vs 2015 (for June to Sep) Revenue ADR THE RESULTS: 24% 9% REAL WORLD 3: CITY EXPRESS BUENAVISTA CONCLUSION: HOTELS TODAY OPERATE IN A VERY DYNAMIC MARKET Hotel Building Increasing competition; lack of competitive Insights Changing Customers Preferences Numerous distribution channels Increased options, Rising Marketing Costs Evolving technology Direct booking abandonment Social Media MULTIPLE DEPARTMENTS INFLUENCE STRATEGY AND REVENUE MISSING: AN UNIFIED PLATFORM FOR ALL DEPARTMENTS THE BIGGEST PROBLEM: MULTIPLE SYSTEMS AND DEPARTMENTS Competitor Intelligence System Pricing Optimization System Distribution System Online Reputation Management System SYSTEMS DO NOT TALK TO EACH OTHER HOW DOES IT IMPACT? No insights to make the right decisions No intelligence sharing Conflicting performance goals Difficult assessment of business processes Inability to track success of strategies across functions THE BIG ?: HOW TO INREASE REVENUE IN THIS DYNAMIC MARKETPLACE? Changing Marketplace SIMPLE! INTRODUCING Benefits Multiple solutions in one More cost effective Less complex Better business decisions Actionable insight Decision support Seamless integration Efficiency and speed Reliability and innovation THE SOLUTION: AUTO RATE ALERTS TO INCREASE RATES WHEN THERE IS AN OPPORTUNITY ONE UNIFIED SYSTEM TO MANAGE ALL REVENUE MANAGEMENT NEEDS IMPLEMENTED RATES THAT WERE A FACTOR OF MULTIPLE MARKET EXPERT REVENUE MANAGEMENT SUPPORT FROM RATEGAIN REAL WORLD 3D REVENUE MANAGEMENT MODEL IMPLEMENTATION: HOTEL LANDMARK BANGKOK BUSINESS CHALLENGES : 50% of increased supply concentrated in Sukhumvit Declining International Visitor Arrivals in 2014 Increased Room Supply of 4000 keys in Ever Changing market trends RevPAR ADR YoY increase 2014 vs 2015 (for April to May) THE RESULTS: 25% 2% UNITY 1.0 The Unified Suite Dashboard using mobile platforms price recommendations on the go custom alerts keep track of guest sentiment FOR THE SMARTPHONE-DEPENDENT REVENUE MANAGER TALK TO US - BEFORE YOUR COMPETITORS DO! Thank You!