Hotel & Motel Management - February 2009 - (Page 23) H&MM February 2009 | HotelWorldNetwork.com “It’s all based on future expectations. So is the stock market, so is everything.” DONNA QUADRI-FELITTI, NYU News & Analysis INDUSTRY COVERAGE er company, operating 39 properties, Reynolds is afforded more involvement in the process. “We’re helping the properties set up and offer a best available rate,” she said. At Omni, staff members use software to look at demand over the past six months. Based on a ratio, the system determines what demand should be in the future. But ultimately, revenue management hinges on predictability in a market that sometimes is not so predictable. “You can only yield to what demand there is,” QuadriFelitti said. jfreed@questex.com 23 Revenue management Continued from page 1 “The key to revenue management is making an informed decision to do more with less,” said Jim Rozell, senior director of revenue optimization at Carlson Hotels Worldwide. “[In this downturn], we can’t afford to miss an opportunity. It’s always been important; it just hasn’t been a priority until now.” Revenue management is a broad term for many complex practices. It applies to predicting consumer behavior as far as 12 months out, setting rates accordingly and to booking a roomnight at the last minute at a deep discount to prevent that guestroom from going unoccupied. It can be implemented at the corporate level, at the property level or a combination of both. “We forget that the discipline, like most businesses, is still part art and part science,” said Donna Quadri-Felitti, who helped create HotelRevMAX before signing on as a professor at NYU’s Preston Robert Tisch Center for Hospitality, Tourism and Sports Management. “The science part is the technology. That part has improved greatly. But perhaps no more than in an economic downturn or crisis do we recognize that people make decisions and leadership matters.” At InterContinental Hotels Group, a team of 270 employees, mostly field-based consultants, comprises the Hotel Performance Support division. Tim Genovese, who serves as VP of the division, said many of IHG’s franchisees have their own pricing infrastructures in place, but his team provides corporate guidance. “In the past, when the economy was doing well, revenue management was focused on price maximization,” Genovese said. “In less robust times, you’re trying to maximize inventory replacement to get more sales.” Genovese said IHG monitors competitors’ prices with third-party reports. “In a training environment, we want to be sure our hotel price points are appropriately positioned in that market,” he said. Rozell said Carlson capitalizes on periods of high demand by providing optimal value. “That sounds very simple,” Rozell said, “but I can tell you in the franchise world, that’s very difficult to do. We are not making direct rate changes; we are counseling people on proper decision making.” To better attack revenue management, Omni Hotels recently appointed Lesli Reynolds to VP of global distribution and revenue strategy. Because Omni is a small- COMMITMENT TO QUALITY COMMITMENT TO CLIENTS Total Construction Project Management • National / International Construction & Renovation Capabilities • Specialists in Hospitality Construction & Franchise Requirements • Architectural, Engineering & Interior Design Coordination • Budgeting & Estimating / Value Engineering A Hospitality Company in the Construction Business COMMITMENT TO RESULTS IDC Construction, LLC 1000 Churchill Court. Woodstock, GA 30188 p 678.213.5263 info@idcconstruction.com www.IDCConstruction.com CIRCLE NO. 116 Photographs courtesy of LXR Luxury Resorts & Hotels http://www.HotelWorldNetwork.com http://www.IDCConstruction.com http://www.IDCConstruction.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - February 2009 Hotel & Motel Management - February 2009 Contents Staff Management is Key for Smaller Budgets Perspective Guests Expect More from Green Programs Sales Clinic Legally Speaking HotelWorld Update Consultant's Corner Trends & Stats Laundry Investing Requires Return to Fundamentals Limited-Service Hotel-Chains Energy Management Ice Machines Broadband Marketplace Ad/Editorial Index Checking Out Hotel & Motel Management - February 2009 Hotel & Motel Management - February 2009 - Hotel & Motel Management - February 2009 (Page 1) Hotel & Motel Management - February 2009 - Hotel & Motel Management - February 2009 (Page 2) Hotel & Motel Management - February 2009 - Contents (Page 3) Hotel & Motel Management - February 2009 - Staff Management is Key for Smaller Budgets (Page 4) Hotel & Motel Management - February 2009 - Staff Management is Key for Smaller Budgets (Page 5) Hotel & Motel Management - February 2009 - Perspective (Page 6) Hotel & Motel Management - February 2009 - Perspective (Page 7) Hotel & Motel Management - February 2009 - Guests Expect More from Green Programs (Page 8) Hotel & Motel Management - February 2009 - Guests Expect More from Green Programs (Page 9) Hotel & Motel Management - February 2009 - Sales Clinic (Page 10) Hotel & Motel Management - February 2009 - Sales Clinic (Page 11) Hotel & Motel Management - February 2009 - Legally Speaking (Page 12) Hotel & Motel Management - February 2009 - Legally Speaking (Page 13) Hotel & Motel Management - February 2009 - HotelWorld Update (Page 14) Hotel & Motel Management - February 2009 - HotelWorld Update (Page 15) Hotel & Motel Management - February 2009 - Consultant's Corner (Page 16) Hotel & Motel Management - February 2009 - Consultant's Corner (Page 17) Hotel & Motel Management - February 2009 - Trends & Stats (Page 18) Hotel & Motel Management - February 2009 - Trends & Stats (Page 19) Hotel & Motel Management - February 2009 - Laundry (Page 20) Hotel & Motel Management - February 2009 - Laundry (Page 21) Hotel & Motel Management - February 2009 - Laundry (Page 22) Hotel & Motel Management - February 2009 - Laundry (Page 23) Hotel & Motel Management - February 2009 - Investing Requires Return to Fundamentals (Page 24) Hotel & Motel Management - February 2009 - Investing Requires Return to Fundamentals (Page 25) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 26) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 27) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 28) Hotel & Motel Management - February 2009 - Limited-Service Hotel-Chains (Page 29) Hotel & Motel Management - February 2009 - Energy Management (Page 30) Hotel & Motel Management - February 2009 - Energy Management (Page 31) Hotel & Motel Management - February 2009 - Ice Machines (Page 32) Hotel & Motel Management - February 2009 - Ice Machines (Page 33) Hotel & Motel Management - February 2009 - Broadband (Page 34) Hotel & Motel Management - February 2009 - Broadband (Page 35) Hotel & Motel Management - February 2009 - Broadband (Page 36) Hotel & Motel Management - February 2009 - Broadband (Page 37) Hotel & Motel Management - February 2009 - Marketplace (Page 38) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 39) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 40) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 41) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 42) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 43) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 44) Hotel & Motel Management - February 2009 - Ad/Editorial Index (Page 45) Hotel & Motel Management - February 2009 - Checking Out (Page 46) Hotel & Motel Management - February 2009 - Checking Out (Page 47) Hotel & Motel Management - February 2009 - Checking Out (Page 48)
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