Hotel & Motel Management - November 3, 2008 - (Page 18)

18 Cornell Insights IN THE details The human side of it Cornell study available Future of yield management Human resources issues H&MM November 3, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Look beyond technology to human resources ore than 20 years have elapsed since the hotel industry borrowed revenue management from the airlines to help improve the revenue yield of its rooms divisions. With evermore-powerful computers and sophisticated ﬁnancial models, revenue management is well integrated with most hotels’ sales programs. We M By Glenn Withiam H&MM Columnist can expect further expansion of revenue management, most likely into other hotel divisions. The revenue managers themselves will need greater analytical ability and management experience, but one factor seems to be holding things back: human resources. The expectations for expansion and the idea that revenue management departments need attention from human resources are the chief ﬁndings of a survey of 186 revenue managers conducted by Sheryl Kimes, a professor at the Cornell University School of Hotel Administration. Read the full report from the Cornell Center for Hospitality Research, “Hotel Revenue Management: Today and Tomor- Visit us at IH / M&RS, booth #3120, November 8–11, 2008 Any style. Any location. The right furniture completes a room with style, comfort and functionality. And the right provider ensures that your order is always perfect. American of Martinsville gets it all right, every time, providing customizable casegoods, upholstered goods and complete service. With a longstanding U.S. presence and numerous global contract facilities, we are able to achieve your project objectives from beginning to end. We’re there. Start to fur nish. Sometimes the one piece of furniture you need to complete a room exists only in your imagination. As your design partner, AOM Studios will see your vision and make it real. 276.632.2061 | 276.632.7894 fax row” (download this report from www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract14927.html). Kimes conducted her study to determine where revenue management stands and where it is going. In terms of where revenue management is going, the managers expect revenue management to expand into spas and function spaces, as well as foodand-beverage operations. Although the rooms division still is the greatest source of revenue for most hotels, those with spas and restaurants could realize more revenue from those divisions. Kimes reported that some hotels have integrated their function space sales with the rooms division revenue management. The revenue managers predict that once hotels have explored all the possibilities for revenue management in rooms, expansion will become imperative for further revenue growth. One point worth noting is managers based in Asia thought their revenue management operations were in greater need of technical improvement than did those based in North America. The revenue managers identiﬁed four human resources issues most in need of development for revenue management operations. Those issues are the lack of a career path for revenue managers, the challenge of hiring qualiﬁed revenue managers, the need to provide appropriate training and policies to retain seasoned managers. Needless to say, these issues are connected. For example, lack of a clear career path makes it difﬁcult for hotels to ﬁnd qualiﬁed revenue managers, and once hired, makes it hard for an individual property or a particular chain to retain a talented revenue manager. Eventually, that person might jump to a larger hotel, another market or a regional or corporate-level position. Faced with those choices, some managers leave the industry altogether. hmm@questex.com Glenn Withiam directs publications at The Center for Hospitality Research at the Cornell University School of Hotel Administration. He can be reached at grw4@cornell.edu. www.americanofmartinsville.com CIRCLE NO. 106 http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-14927.html http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-14927.html http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-14927.html http://www.americanofmartinsville.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - November 3, 2008

Hotel & Motel Management - November 3, 2008 Contents The Rate Debate Accor Defines Motel 6 Prototype Rollout Holiday Inn Eyes Upscale, Timeshare Perspective Economy Sets Tone at The Lodging Conference Mellow Vibe Meets Bold Design at HD Boutique Expo IH/M&RS to Focus on Going Green Legally Speaking Sales Clinic On Finance Travel Trends Cornell Insights Franchise Law HotelWorld Update Trends & Stats Energy Star Update Energy Star Update An Industry Connected People on The Move Annual GM Survey Point-of-Sale Systems IH/M&RS Product Preview Outdoor Lighting Refrigeration Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - November 3, 2008

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