Hotel Revenue Management - Best Practices
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* PMS Opera, Autoclerk, roomMaster, WebRezPro... * CRS SynXis, iHotelier, Windsurfer, Genares, Pegasus..... * Channel Managers - * OTAs * Flash Sale *
FRANK OKUNOwner, RevMax Pros20 years in hotel Sales & Marketing6 years as General Manager11 years in Revenue Management5 years with Kimpton Hotels2 years as Corporate DORM for Personality Hotels6 years owner of RevMax Pros* Remote-based revenue managers
* Managed over 20 hotels in past 6 years
* San Francisco, Silicon Valley, Half Moon Bay, Cambria, Hawaii, LA, Reno, New Mexico, Canada
* 50% cost of full-time, on-property RM, subcontract basis
WE ALL ARE!!
GMs, FOMs, DOSM, Sales Managers, Front Desk, Night Audit, Accounting, Owners....Who is responsible for revenue management?* PMS Opera, Autoclerk, Frontdesk Anywhere, WebRezPro... * CRS SynXis, iHotelier, Windsurfer, Genares, Pegasus.....
* OTAs Expedia, Booking, Orbitz, Agoda, Hotwire, HotelTonight.....
* Channel Managers EZ Yield, Siteminder, ChannelRush, RateTiger
* Flash Sale Travelzoo, Groupon, Jetsetter, LivingSocial, Amazon.....
REVENUE MANAGEMENTRMS Systems!BEST PRACTICESLearn from the PastContent ManagementPromotion ManagementQualified DiscountsRestrictionsComp SetIBE MaximizationSingle Inventory PlatformOTAsRMS SystemsLearn from the PastKnow your booking windowsRate change history Special events, holidays, weatherCancel patterns over large conventions = Stricter restrictions Pace patterns (1, 3, 7 days, etc.)
Content ManagementFrequent reviewPhotos: Hi-res, multiple per room, good lightingDescriptions & non-room pricesBe creative! Team involvement check all channels
PromotionsOTA Positioning be a sniper, not shotgun methodControl the OTAs, not the other way aroundClosed user, mobile, package, intl, etc Test & Measure!Focus on need dates, avoid high demand datesAlways match OTA promos on your IBELOSFlash Sites be careful, do the math! What is your CPOR?
Qualified DiscountsAAA, AARP, Military, Government
Why close? 10% is better than 15% - 25% to OTAs
Open Pricing change discount level instead of closure
Extended Cancel Policies
Manage by Bucket rather than Rate
Study your Comp SetRMS Systems - PMS integration benefits outweigh all other methodsSTRMarketVisionPublic Internet SitesDont blindly follow the comp set...what if they are following you? Your own pace, needs, history, social reviews, budget, image positioning, etc.
Maximize IBE ProductionLowest Cost ChannelSEO/PPC how good is your webmaster? TripAdvisor Business ListingWhy use TravelAds and not TripConnect?IBE should be user-friendly, good photos, advanced toolsValue-added ratesAvoid overly complex packages value should be easily understoodDynamic PackagingPre-Post auto-letters with offers & incentivesSecret Deal
Success Story Hotel Renew, Honolulu block to Waikiki Beach @ $99 rates and 60% occupancies in 2009New website with large, rich color photosInvested heavily in SEO/PPC - Browsers and TravelAdsTripAdvisor Business listingPushed to #3 avg position on TripAdvisor with exceptional serviceWorked with SynXis on mega-search sites like Kayak and TrivagoCreative pre-post letters with rotating incentivesMultiple LOS promotions for OTA positioning at inflated BAR ratesIn 2 years, rates were doubled and occupancies in the 80sIn 4 years, rates reached high $200s on average with 90% occupancies
Single Inventory PlatformStandalone Channel Managers vs. 2-Way PMS CMsRisk of undersellingRisk of oversellingParity issues (room type or total hotel)SiteminderOTA SyncSynXis CCX/RateGainDirect Connect costs and merchandising issuesSIP reservation delivery issues
PMSCRSOTASPMSCRSOTASPMSCRSSITEMINDEROTASDIRECT CONNECT2-WAY PMS CHANNEL MANAGERCHANNELMANAGERPMSCRSCCX OR OTA SYNCOTASOTASNot too many please!
Focus on top producers
Higher volume = lower margin negotiations
Promo management you steer the ship!
Ideas for managing market mix
RMS SystemsWe need to be better than LY smarter, fasterMore info than just comp set history, weather, air fare, regrets, denialsLabor/time saving real timeNotificationsRate RulesKnow your PMS costsToyota Corolla vs. Ferrari..... You still need to drive it!
7 Take-AwaysKnow your history trendsQuality & up-to-date photos and creative descriptionsPromotions only when neededStudy your comp set but include other factors in RM strategyPush biz to your IBE using SEO/PPC/added value & secret dealsSingle Inventory PlatformBecome part of the future with RMS systems like Pricematch!
Frank OkunOffice: 415-895-5767 Cell: firstname.lastname@example.org