Luxury Hotelier - February 2008 - (Page 42)

42| Innovate Yield-management software helps hoteliers maximize revenue A number of factors determine room rates at the luxury level iagara-on-the-Lake, Ontario, just 20 minutes from Niagara Falls, is a romantic place to visit. The four upscale Vintage Hotels properties in Niagara-on-the-Lake are aware of that, which is why they bank on Valentine’s Day being one of their busiest times of the year. And it’s also why Lisa Gibson began organizing rate strategies for Valentine’s Day 2008 at all four properties as early as summer 2007. Ms. Gibson, director of revenue management for Vintage, is part of a flourishing behind-the-scenes group in the hotel industry. Revenue managers, also known as yield managers, are becoming increasingly important at the luxury level as hoteliers look to identify trends in travel and use that knowledge to maximize revenue. Ms. Gibson’s strategy for managing revenue focuses on setting daily room rates, but also on determining length-ofstay requirements and working with the marketing department to offer customized packages based on customer profiles. After all, she says, “the room unsold that night can never be recouped.” “You’re watching your geographics as far as what and when they are booking,” Ms. Gibson says. “We try to determine patterns and we work with the marketing department to appeal within those areas in a different way.” Yield-management software has come a long way in helping analyze data. For N VINTAGE HOTELS Lisa Gibson manages revenue for Vintage Hotels’ four Niagara-on-the-Lake, Ontario, properties, including the Prince of Wales hotel [above] and the Queen’s Landing (right). She holds yield management committee meetings once a week. example, Ms. Gibson uses a software program developed by Maestro (www. maestropms.com) to compare occupancy and daily rate numbers from previous years, among other statistics. She runs reports and presents these numbers at weekly “yield committee” meetings with other Vintage executives, namely the property general managers, directors of marketing and sales, and the vice president of finance. “I present my opinions and strategies, and we discuss it as a group,” Ms. Gibson says. “Using their expertise, we make decisions going forward. Everybody has a little bit to lend.” There are a number of factors that determine rate fluctuation for a property, and Ms. Gibson says the economy is one of the top influences she analyzes. For her Niagara-on-the-Lake properties, the flux of the Canadian dollar versus the U.S. dollar Luxury Hotelier | February 2008 | www.LuxuryHotelier.com http://www.maestropms.com http://www.maestropms.com http://www.LuxuryHotelier.com

Table of Contents Feed for the Digital Edition of Luxury Hotelier - February 2008

Luxury Hotelier - February 2008 Editor's Letter Publisher's Letter Inform Network Forever Young Evolution for Jumeirah Insight Diamond in the Rough Amenities Televisions Art in Residence Yield Management Development Wine Lists Marketing to Locals Update Advertisers Index Editorial Index Source Listing Dossier

Luxury Hotelier - February 2008

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