Hotel Revenue Discovery Ideas

Two Guest Segmentation Algorithms That Every Hotel Revenue Manager Will Soon Be Using

Categories: Revenue Management
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by Robert Hernandez

The most popular pricing algorithms are great for optimizing Rooms Revenues, but fall short when it is time to consider the impact of rates on all the revenue streams.  Unfortunately, that level of RM analysis is no longer enough. To achieve true Total Revenue Management, you need to follow and value your guests footsteps throughout their stay. This type of analysis begins by digging into the behavior of past guests and this is where things get complicated. Luckily, a couple of very Read more

The Three RM Terms That Revenue Managers Misuse the Most

Categories: Analytics, Pricing, Revenue Management
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by Robert Hernandez

I have had the good fortune to engage with hundreds of Hotel Revenue Managers from every corner of the hospitality industry. With no reservation I can honestly say that the vast majority are dedicated professionals who want nothing less than the best for their employers.  They care about their personal performance and the value they create.  Despite all that, it is hard to argue with the reality that the career trajectory of most hotel RMs has left a lot of holes Read more

From PAR to PAC: The Big Revenue Management Reset

Categories: Analytics, Guest Analytics, Hotel Analytics, Per Available Customer, Revenue Management, Total Revenue Management
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by Robert Hernandez

Today, a revolution is happening in hotel revenue management as hoteliers with the highest profit expectations are beginning to follow the customer instead of the product.  They are using advanced analytics to dump their dependence on the crude “Per Available Rooms” (PAR) averages and have begun the move to measure their world by predictive indicators based on “Per Available Customers” (PAC).  This is the Big RM Reset.  It is a seismic shift that is reframing the Hotel Revenue Manager’s world Read more

12 Meta Marks You Should Add to All Hotel Reports

Categories: Data, Revenue Management
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by Robert Hernandez

In the post 7½ Habits of Highly Effective Hotel Revenue Managers I noted that the best RMs “think like a librarian.”  At the core of that habit is the proper labeling and storage of reports and analysis. Yet, with all the emphasis on governance and PCI, I find that most hotels, of every size, do not mark their reports with any meta information. Below are 12 meta marks that I add to all my work product that has saved me time, Read more

5 Reasons to Stop Reverse Engineering Your Hotel Budget

Categories: Budget, Data
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by Robert Hernandez

Even without any research to back me up, I think it is safe to say that most companies reverse engineer their budgets. That is, they decide on a final profit number or percentage and then go about building all the P&Ls to support that final number. From Wall Street to Main Street (sorry for the cliche), business managers tend to build budgets that reflect the expectations of owners and shareholders. Owners like this approach because it allows them to set Read more

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