What’s the ideal mix of OTA business for your property?
-Experts explain an EBITDA impact model that looks at changes in OTA and non-OTA production. The groundswell of support for “book direct” initiatives is squarely aimed at reducing reliance on online-travel-agency production. Blindly following a course of action to simply reduce OTA transaction mix by an arbitrary percentage may not yield the best financial results. In fact, earnings before interest,…
Should We be Concerned About ADR?
-Projections for 2017 and beyond by STR, CBRE and PKF all call for anemic occupancy growth at best, notwithstanding record occupancy levels for the U.S. hospitality industry. With Revenue Per Available Room (RevPAR) growth projections at inflationary levels (2.5 – 3.5 percent, or so), it is clear that expectations call for Average Daily Rate (ADR) growth to continue, but will…
Evolving expectations for revenue managers
-There is no one right way to be a revenue management practitioner, and the trick is to find what approach fits best. Attracting and retaining top revenue management talent can be a challenge these days. Owners and general managers often ask me what appears on the surface to be a very straightforward question: “What makes for a good revenue management…
