I’ve sat in hundreds, maybe thousands, of Revenue Management meetings. The setting is often the same: a promotion is launched to stimulate demand during a slow period, and a few days or weeks later, a pickup report is pulled. Someone reads off the number of rooms booked or the revenue generated, and the room collectively decides whether the tactic “worked.” Sometimes the verdict is positive and the promotion becomes a recurring tactic. Sometimes it’s dismissed and shelved. But in most Read more
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7 Hotel RM Metrics You Probably Have Not Checked In A While — But Should
Categories: Analytics, Comp Set Anaysis, Data, Forecast, Hotel Analytics, Hotel Revenue Discovery, Pricing, Revenue Management
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Most Revenue Management strategies don’t fail because of bad math. They fail because of good math applied to old assumptions. Metrics that once held steady — like booking window, LOS, cancellation rates — start to drift quietly, and nobody notices. The RMS keeps outputting forecasts, the meetings keep rolling, and the team keeps working the plan. Until one day, you're behind pace, pricing erratically, and wondering why the model no longer fits reality. But the model didn’t break — the Read more
How to Go from Revenue Manager to Revenue Science
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Almost two decades after the big expansion of Revenue Management throughout the hotel industry, Directors of Revenue Management still make 20% less than Directors of Finance and Accounting (payscale.com) . That may seem unfair because RMs have as much, or maybe more, fiduciary responsibility to the bottom line of a hotel company as their counterparts in finance. Not only that, but RMs have to deal with more systems and more data than finance ever will. However, there is good reason Read more
8 Ways the Best Revenue Managers Have Re-Defined their Job
Categories: Analytics, Budget, Data, Forecast, Guest Analytics, Hotel Analytics, OTA, Revenue Management, Strategic Planning, Total Revenue Management
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The 25,000 or so Hotel Revenue Managers around the world are self-dividing into two distinct categories: those that are well prepared(or preparing) for 2024 and those that are well prepared for 2004. Fourteen years ago, the global lodging industry returned to positive profit growth after three years of declining revenues. Hotels began their four year ride(2004-2008) to historic levels of revenue and profit. In 2004 TripAdvisor, HomeAway and dozens of OTAs launched to capture the new opportunities in travel that Read more
As a consultant for Hotel Revenue Science I’ve had the opportunity to work with many Revenue Managers. I have interacted with RMs working in large brands, franchises and independents. My job has always been to bring them up to a sophisticated level of technical competence so that they have more confidence in decision making. I can attest that most Revenue Managers that I have met are eager to be better at their jobs and, in many cases, they are one Read more