dr. gabor forgacs
Served a Fish Soup That We Never Had
Dr. Gabor Forgacs | June 13, 2022
Dr. Gabor Forgacs I was the General Manager of the three-star Hotel Rege in Budapest, Hungary when we happened to host a conference in April of 1985. The event was attended by the chief executives of cooperative corporations of the travel and tourism industries of European countries. It was a multi-day event during which the attendees were entertained by visits to tourist attractions and enlightening day trips to the countryside, giving them a taste of the traditional Hungarian hospitality offered by successful coops. The event was a great success to Cooptourist, the official organizer (and owner of our hotel), and the staff of our hotel h...
Revenue Management Needs to Go Beyond Pricing
Dr. Gabor Forgacs | April 14, 2020
By Dr. Gabor Forgacs This abrupt halt in travel caused by the current pandemic is not going to last forever but it will last long enough to shake the foundations of the global accommodation industry. The unprecedented loss of revenue will not return instantly to pre-pandemic levels to hotels. It would be a mistake to think that the sudden stop in revenue flow will one day suddenly restart and go full tilt again. Revenue professionals who focus mostly on tactical price control will have to broaden their horizon in the future when travel resumes as business may not be as usual once the COVID-19 pandemic gets behind us. After the economy g...
The Future of Revenue Management Is Not What It Used to Be
Dr.Gabor Forgacs | October 11, 2018
By Dr.Gabor Forgacs Not too long ago we thought the future of Revenue Management would be more data; faster processing capability; more revenue streams optimized; and more properties managed by one revenue professional. Now that the second decade of the 21st century is nearing its final year we can see that the "more" and "faster" will give way to something slightly different. How We Got Here The revenue profession in the hotel industry has grown up: there are revenue analysts, revenue managers, directors of revenue, even vice presidents and other executives – it is fair to say the revenue profession is emerging as a champion of p...
Revenue Metrics Are Evolving: Average Room Rate Becomes Two for One
Dr. Gabor Forgacs | July 26, 2017
By Dr. Gabor Forgacs The previous methods of ADR (Average Daily Rate) calculations are not good enough any longer. In the fast-paced world of the hotel industry the ecosystem of distribution channels and methods is evolving fairly rapidly and we need to reflect that in our ADR calculations. We need to separately calculate an external ADR from guest-paid room rates and an internal ADR from hotel-collected net room rates in order to come to terms with some fundamental measurement challenges. Hotels compete hard and their performance for cost efficient sales and room rate maximization is under the microscope. Today as a result of successfu...
The Emerging Trend of Total Hotel Revenue Management
Dr. Gabor Forgacs | October 11, 2016
By Alice (Chuyi) Zheng and Dr. Gabor Forgacs Revenue management seems to evolve towards total revenue management and hotels have begun to execute strategies using this concept. However, even though many hoteliers understand the importance of utilizing the total revenue management approach, in reality, few are making meaningful progress following this direction. We have studied some of the current practices and future trends of total revenue management in hotels and discussed them in our research paper for practitioners. This study was designed as a qualitative study utilizing a combination of both primary and secondary research. The rat...
How Hotels Can Compete for Revenue Against the Growing Threat of Airbnb?
Dr. Gabor Forgacs | April 14, 2016
Gabor Forgacs and Frederic Dimanche The Airbnb business model is driven by solid economic fundamentals but hotels can offer value as well Airbnb successfully delivers relevant and quantifiable advantages in saving time, defeating distance and generally finding a way to offer a solution for a "pain point" be it constrained travel budget or a preference for a given location. Airbnb also offers the perception of control for users, and a perceived authentic experience with locals. Airbnb is a disruptor that is able to impact the hospitality and tourism sector in a significant way. Its underlying economic drivers are powerful in a down econ...
