Hotel Revenue Discovery Ideas

14
Sep

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

14
Aug

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

14
May

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

14
Apr

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

14
Apr

Add This Power Metric to Your Pace Report Today

Categories: Analytics, Hotel Analytics
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by Robert Hernandez

Sometimes the simplest math can deliver the most powerful analytics. In my experience this is, by far, the metric that captures the most attention on a Pace Report. When analyzing variances for revenue performance, there is one powerful metric that is easy to calculate and so easy to explain and everyone will be impressed when you use it. The Variance Analysis Components metric will let you show what portion of a variance in revenue is attributed to changes in occupancy Read more

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