Every year, it seems as though the hospitality industry faces more competition, new opportunities to leverage their data, and difficult organizational challenges to overcome to remain competitive in a hypercompetitive marketplace. The popularity of the sharing economy, dominating OTAs and a growing generation of often-puzzling consumers all give pause to hotels as they strategize for a more profitable future. Hotels have been feeling the heat from OTA competition for several years, causing many organizations to double down on their efforts to drive more direct bookings. Revamped loyalty programs, refined marketing campaigns and improvements to brand websites have all become primary focuses for hotel brands looking to turn the tables on their online competition. READ MORE

Revenue management tends to be one of the most challenging hospitality disciplines to define, particularly due to the constant evolution of technology. Advancements in data processing, information technology, and artificial intelligence provide our industry with expanded opportunities to reach, connect, and learn from our guests. Ultimately, the primary goals of revenue management remain constant as the ever-evolving hospitality industry matures. We must keep these fundamentals top of mind, while proactively planning for the tighter targets that lay ahead. That said, how can we embrace these innovations, operate under constricted parameters, and learn from the practices used today to achieve our same goals moving forward? READ MORE

Airbnb is less than a decade old, but it has already begun to make waves in the travel industry. The online marketplace where individuals can list their apartments or rooms for guests to book has been able to secure a surprisingly stable foothold for itself. This has caused some hoteliers to worry that there's a new competitor in the market with the potential to not only take away market share but drive prices down lower than ever. Let's take a closer look at how Airbnb fits into the industry right now and then walk through the steps of the ways your hotel revenue management strategy can be adapted to the age of Airbnb. READ MORE

Since revenue management is a relatively new and still-evolving discipline, it lacks the dedicated curriculum and the focused and formal training and education found in most schools. That makes it even more important that owners and operators remain on the constant lookout for revenue management talent-and should be prepared to seize it when it arises. The revenue management professionals in the director and above positions are working and are (for the most part) very good at their jobs. Do you have a catering assistant whose first question each morning is 'Did we sell out?' If so, you may have just found your next revenue manager! READ MORE

Technology is becoming an ever more growing part of the hospitality industry and it has helped us increase efficiency for guest check-inn, simplified the night audit process and now has the opportunity to increase our revenue production. These systems need hands on calibration to ensure they are optimized for your operations. As a manager you need to understand how these systems work and what kind of return on investment your business is getting. Although some of these systems maybe mistaken as a "set it and forget it" product, these highly sophisticated tools need local expert like you and your team to analysis the data it gives you and input new data requirements. READ MORE

You do not have to be a hospitality professional to recognize the influx and impact of new technologies in the hotel industry. Guests are becoming familiar with using virtual room keys on their smartphones to check in, and online resources like review sites and online travel agencies (OTAs) continue to shape the way consumers make decisions and book rooms. Behind the scenes, sales and marketing professionals are using new tools to communicate with guests, enhance operational efficiencies, and improve service by addressing guests' needs and solving problems quickly and with a minimum of disruption. READ MORE

For years, hotels have housed their Revenue Management systems on their premises. This was possible because data sets were huge but manageable, and required large but not overwhelming amounts of computing power. However, these on-premise systems are a thing of the past. In the era of Big Data, the cost of building and maintaining an extensive computing infrastructure is incredibly expensive. The solution - cloud computing. The cloud allows hotels to create innovative Revenue Management applications that deliver revenue uplift and customized guest experiences. Without the cloud, hotels risk remaining handcuffed to their current Revenue Management solutions - and falling behind competitors. READ MORE

Hotel room night inventory is the hotel industry's most precious commodity. Hotel revenue management has evolved into a complex and fragmented process. Today's onsite revenue manager is influenced greatly by four competing forces, each armed with their own set of revenue goals and objectives -- as if there are virtually four individual revenue managers, each with its own distinct interests. So many divergent purposes oftentimes leading to conflicts that, if left unchecked, can significantly damper hotel revenues and profits. READ MORE

While hotel company in-house revenue management training programs and collaborative partnerships such as the industry-academia partnership that I wrote about previously, can go a long way towards developing the right revenue management talent, we are continuing to witness growth in the talent shortfall. Here, I take a look at a recent initiative launched by HSMAI to complement existing talent development programs, and draw on some of the insights gained from a HSMAI-sponsored Think Tank to suggest some practical actions that hotels can take to promote the revenue management discipline and grow their revenue management talent pool. READ MORE

Revenue management is widely defined as the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of revenue management is selling the right product to the right customer at the right time for the right price. The essence of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment. READ MORE

While there are many service industries, hospitality is certainly one of the most complex. The closest comparison may be a cruise ship, or, to a certain extent, air travel. But for something firmly rooted at all times to the ground, we'll take bragging rights. We are providing an extremely intimate service, lodging, within the confines of what is nothing more ambitious than running a small city. The modern hotel comprises housing; utilities and other infrastructure; security; an employment force; a commons, i.e. lobby; and, oftentimes, food, beverage and recreation. We bring together under one roof people from all walks of life, with varying needs, expectations and personalities, everyone from a business executive stressed over tomorrow's important meeting to a senior couple celebrating their 50th anniversary. READ MORE

The big data revolution isn't just on the way, it's already here. As of 2012, more data crossed the internet every second than was stored on the entire world wide web 20 years before. From bounce rate to time spent on site to conversion rate and more, it's now possible to access every step of the buyer's journey in great detail. As an enterprising hospitality professional, it's your job to take advantage of that unprecedented access to data. The problem is that big data often feels overwhelming, leaving you and your team to filter what correlations are important, which are just noise, or how to sift the wheat from the chaff and incorporate the useful data into your marketing strategy. Here are the changes and data to pay attention to. READ MORE

Revenue management has come a long way since its early days of basic yield management. Many consider 1989 a pivotal turning point when revenue management became a permanent part of hotel management and not just a passing trend. With advancements in market data, decision science, and technology, revenue management continues to evolve. This is especially true of the groups and meetings segment, where revenue managers are using market data and advanced analytics to inform their actions, hone sales strategies, and unite sales and revenue management toward a common goal. READ MORE

Revenue managers are increasingly interested in the potential for alternative performance metrics to give a better understanding of profitability than RevPAR. In this paper, I describe an NOI metric CBRE Hotels' Americas Research is developing to give a better understanding of the relationship pass-through performance has with occupancy. To produce this metric, I estimate expenses and revenues from all sources separately with an econometric model. The difference of the sum of expense from the sum of revenues is the NOI. I demonstrate that when occupancy is increasing, revenues grow more quickly than expenses, and NOI growth exceeds RevPAR growth. Take a look… READ MORE

Michael McCartan, Managing Director of Europe, Middle East & Africa for Duetto, looks at why the hotel industry has historically lagged behind the technologically advanced online travel agents (OTAs). He addresses the issues of data sharing and analytics, and how these can help shape revenue management decisions as well as enhance the guest experience. He looks at machine learning and technology as a way of removing friction from the guest experience, and questions how this can be incorporated into hotel operations. And he calls on the hotel industry to work together to open up a shared “data lake” and compete head-on with the OTAs. READ MORE

It is hard to argue that a hotel's primary focus be anything else but the guest, but just how essential is it for hotels to be customer-focused? The answer is - very essential. A major part of being customer-focused is understanding and then ensuring you are giving guests what they want. Specifically, if guests are looking for experiences, then create experiences that are unique and personalized. Details matter. In the 21st century, customers have access to a wide variety of valuable third-party information about businesses to help them decide on a hotel at which to stay on their next vacation. READ MORE