JOSH HENEGARCORPORATE REVENUE DIRECTOR

SELLING THE RIGHT ROOMAT THE RIGHT PRICE

THRU THE RIGHT CHANNELTO THE RIGHT CUSTOMER

AT THE RIGHT TIME

THE ART OF TURNING AWAY BUSINESS

MATCHING SUPPLY & DEMAND

THE APPLICATION OF DISCIPLINED ANALYTICS THAT PREDICT CONSUMER BEHAVIOR AT THE MICRO-MARKET LEVEL AND OPTIMIZE PRODUCT AVAILABILITY AND PRICE

TO MAXIMIZE REVENUE GROWTH.

DEFINING REVENUE MANAGEMENT

DEFINING REVENUE MANAGEMENTKEY PERFORMANCE INDICATORS (KPIs)

BALANCED SCORECARD

DEFINING REVENUE MANAGEMENTKEY PERFORMANCE INDICATORS (KPIs)

=OCC ADR RevPARx

{ % C H A N G E Y E A R - O V E R - Y E A R }

{ I N D E X V S . C O M P S E T }

DEFINING REVENUE MANAGEMENTKEY PERFORMANCE INDICATORS (KPIs)

MARKET SEGMENTATION

CHANNEL PRODUCTION

GROUPMIX

PACING

L.O.S.

ORDER VALUE

LEADTIME

DEFINING REVENUE MANAGEMENTKEY PERFORMANCE INDICATORS (KPIs)

PROBLEM:TOP LINE REVENUE

ONLY PART OF THE PICTURE

EVOLUTION OF REVENUE MANAGEMENT

EVOLUTION OF REVENUE MANAGEMENT

(SEMI-AUTOMATEDBUSINESSRESEARCHENVIRONMENT)

EVOLUTION OF REVENUE MANAGEMENT

EVOLUTION OF REVENUE MANAGEMENT

CHANNEL DISTRIBUTION

M E T A S E A R C H

CHANNEL DISTRIBUTIONCOST OF ACQUISITION

CHANNEL DISTRIBUTIONCOST OF ACQUISITION

ADR: $125

CHANNEL DISTRIBUTIONCOST OF ACQUISITION

CONSIDER COSTS vs BENEFITS

EXAMPLE:

EXPENSIVE

20%NEW GUESTSMARKET REACH SERVICE FUNCTIONS (eg: REAL-TIME FEEDBACK)

PROMOTIONAL TOOLSMARKET DATA

CONVERTING GUESTS

”You guys all criticize me for how much I charge you for guests tocome to your hotel. I think you’re looking at it wrong. Look at us asthe cheapest source of referrals that you could imagine. If theycome through me, you pay me once, and if they come back to meagain and again, shame on you. You should make them a loyalcustomer.” – Dara Khosrowshahi, Expedia CEO

https://skift.com/2016/08/02/this-is-how-hotels-could-win-the-direct-booking-wars/

CHANNEL DISTRIBUTION

CONVERTING GUESTS

CHANNEL DISTRIBUTION

CONVERTING GUESTS

CHANNEL DISTRIBUTION

POST-STAY COMMUNICATIONS*CAPTURE EMAIL ADDRESSES!

IT’S TOO EASY TO PLAY THE OTA GAME

CHANNEL DISTRIBUTION

MAKE IT EASY FOR US TO PLAY OUR OWN GAME

IT’S TOO EASY TO PLAY THE OTA GAME

CHANNEL DISTRIBUTION

IF YOU’RE GOING TO RUN A PROMO OR OFFER A DISCOUNT ON AN OTA, AT LEAST DO THE SAME ON YOUR DIRECT CHANNELS

COMPARE THE PROCESS TO OUR PMS/CRS SYSTEMS

IT’S EXHAUSTING TO PLAY THE OTA GAME

CHANNEL DISTRIBUTION

RATE PARITY: SELECTIVE, BIASED, & INCREASINGLY UNCLEAR WHAT THE RULES ARE

KEY PERFORMANCE INDICATORS (KPIs)

RE-DEFINING REVENUE MANAGEMENT

WHAT WE MEASURE NOWOCCUPANCY, ADR, RevPAR

WHAT WE SHOULD BE MEASURINGOCC/ADR/RevPAR

NET ADRNET RevPAR

PROFITABILITY PARBOOKING COST OF SALESOTA CONVERSION RATE

PROPERKPIs

KEY PERFORMANCE INDICATORS (KPIs)

RE-DEFINING REVENUE MANAGEMENT

EXAMPLE: NET ADR

PRE-2013: ALL EXPEDIA BOOKINGS CAME

THRU AS A NET RATE

CURRENTLY: EXPEDIA BOOKINGS INCLUDE

BOTH GROSS & NET RATES

RESULT: INFLATED ADRs +

DECEIVING REVENUE PRODUCTION

KEY PERFORMANCE INDICATORS (KPIs)

RE-DEFINING REVENUE MANAGEMENT

RESULT: INFLATED ADRs +

DECEIVING REVENUE PRODUCTION

NEEDED: BACK OUT POST-STAY MARGINS & COMMISIONS FOR NET ADR

RE-DEFINING REVENUE MANAGEMENT

RE-DEFINING REVENUE MANAGEMENT

IT’S STILL THE HOSPITALITY INDUSTRYGREAT SERVICE INCLUDES MAKING IT AS EASY AS POSSIBLE

TO DO BUSINESS WITH US

RE-DEFINING REVENUE MANAGEMENT