RM Courses

Mar

Taking On the Epidemic of Overconfidence in Hotel Revenue Management

Categories: Analytics, Data, Pricing, Revenue Management

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by Robert Hernandez

From time to time one of our clients asks me to sit in on a vendor presentation for some Revenue Management or Business Intelligence software. At the end of these demos the salesperson usually summarizes the value of the system by saying some derivative of “it allows you to make more confident decisions.” That is exactly the opposite of what the sales pitch should be. You see, in the hotel business there is no confidence problem. Managers across all departments Read more

Feb

In Revenue Management, Never Being Right is Better than Sometimes Being Right

Categories: Analytics, Data, Revenue Management, Strategic Planning

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by Robert Hernandez

One of the most difficult concepts to explain in Mathematical Rate Setting is that the optimal rate is the one that has the best chance of maximizing revenue over the long term, not necessarily in the short term. In other words, it is the rate that has the best chance of delivering the optimal revenue if the same rate decision where repeated many times. That does not mean that it is the best rate for any one time that you make Read more

Feb

How to Become a 5-Tool Hotel Revenue Manager

Categories: Analytics, Hotel Analytics, Revenue Management

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by Robert Hernandez

In baseball, a 5-Tool player is one that excels at the skills of throwing, catching, running, hitting for power, and hitting for average. While they are rare, these players are considered the top athletes in the game and therefore command the highest salaries. In Revenue Management the same is true for the most aggressively recruited and highest paid RMs. They are the ones that have the perfect combination of skills which allow them to take any hotel company’s RM function Read more

Dec

The 5 Results Hotel Revenue Management Can’t Deliver

Categories: Revenue Management

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by Robert Hernandez

Believe or not, after almost two decades of the great Revenue Management proliferation throughout the hotel industry(2004-now), the vast majority of properties are still just waking up to the potential benefits of RM. That’s a good thing, but unfortunately, because of their inexperience with RM, many hoteliers have wild misconceptions about what RM can actually deliver. While it is true that Revenue Management is now the most critical function in the hotel industry, it certainly is not a panacea that Read more

Hotel Revenue Discovery Ideas

Taking On the Epidemic of Overconfidence in Hotel Revenue Management

In Revenue Management, Never Being Right is Better than Sometimes Being Right

How to Become a 5-Tool Hotel Revenue Manager

The 5 Results Hotel Revenue Management Can’t Deliver