Monthly Archives: November 2014

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A Practical Guide to Competitive Set Selection

Determining a competitive set is something those in the hospitality industry do routinely, however, these selections can have lasting effects on market positioning and performance and ultimately, asset value. The three most common reasons for competitive set selections include pro forma development, market positioning and performance benchmarking. Selecting an appropriate competitive set and evaluating this

Top 10 Revenue Management Issues for 2014 and Beyond

Growing pains (again) may best describe what the revenue management profession is going through today. The role of revenue management in the hospitality industry continues to evolve, but it does so in fits and starts. As we look into 2014 and beyond, there are several significant issues that organizations will need to address in order

Pricing Techniques for Revenue Management Professionals

The function of pricing is a pivotal component of revenue management that requires practitioners to thoughtfully consider various influences in order to develop a strategy that best fits. It should be stressed that pricing is not synonymous with revenue management but is rather, one activity within a greater process which includes other elements such as

What Business Leaders Need to Know about Revenue Management

As a business leader in the hospitality industry, have you ever noticed that expectations for your role have increased exponentially in recent years? General Managers in particular often find themselves needing to become well versed in such diverse topics as union relations, the rake of newly ordered banquet chairs, social media engagement, pool PH levels,

Hotel vs. OTA Parity Agreements: Does It Have to be a Battle?

If a love-hate relationship exists in the hospitality industry, it’s between hotels and online travel agencies (OTAs) such as Expedia, Orbitz and Priceline, among many others. On one hand, OTAs extract sizable commissions, which understandably grate on the hotels that must pay them. On the other, they also produce an enormous amount of bookings, which

Distribution Strategies – Emerging Challenges for Revenue Managers

Smart operators recognize that that the role of revenue management is critical to overall financial results, not just top-line performance. In addition to being responsible for the functional aspects of forecasting, pricing and inventory management, today's revenue management professional is often accountable for managing the distribution efforts for their respective organizations. This poses some challenges,

5 Ways to Entice Travelers to Book Direct

As we all know, Expedia, Priceline, Hotwire and other online travel agencies (OTAs) are extremely valuable resources for keeping rooms filled. But how do hotel operators keep them from cannibalizing business from customers that might have booked direct in the first place? This is one question I hear all of the time from companies that