revenue generation
Hospitality Financial Leadership: The Early Arrival Program
David Lund | July 29, 2024
With my workshops and speaking, I often do an exercise where I challenge each leader to find a minimum of $250 in next month's forecast. That can be savings in the form of reduced payroll or expenses. It can also be a source of new revenue. The participants come up with some amazing ideas that really work. The great thing about these ideas is that we almost always get to repeat and compound. An idea that works next month just works EVERY month. Read more about creating asset value here. In this piece, I am going to share one of the best revenue-generating and guest-pleasing ideas that my clients have come up with. It’s something that ju...
From Base Stays to Premium Experiences: How AI Is Redefining Ancillary Revenue Generation for Hotels
Leo Barrit | May 29, 2024
By Leo Barrit Artificial intelligence (AI) is more than just a buzzword; it's a transformative tool that can revolutionize the hospitality industry. Its practical use can empower hotels to anticipate guest preferences, tailor services accordingly, and deliver them through the right channels. This not only enhances the guest experience but also opens doors to increased profitability. However, it’s crucial to understand and navigate the challenges and considerations of implementing AI to align with a hotel's business goals. The economic gains from AI are not to be underestimated. A study by PwC predicts that the most significant boosts ...
Event Space Revenue Analytics: The “Marriage” of Revenue Management and CRM
Dan Skodol | December 15, 2023
By Dan Skodol An area of opportunity where the three commercial disciplines converge more so than others is event space. Like hotel rooms, restaurant seats, spa treatment rooms, and other types of time-based, perishable inventory, event space shares many of the conditions that are conducive to the application of Revenue Management: Relatively low variable cost, relatively high fixed cost structure Seasonal, varying demand levels Flexible pricing structure Advance reservations Fixed capacity On top of these ideal conditions, add a focused, funnel-driven, outbound Sales effort that arguably doesn’t exist for something l...
The Title and Role of Revenue Manager Should Be Transitioned to “Revenue Generation Manager”
Doug Kennedy | May 18, 2022
By Doug Kennedy If you asked most hoteliers to write up a job description for the position of Revenue Manager (RM), chances are the responsibilities listed would focus on controlling and “managing” revenue, as opposed to generating it. For example, the first tasks that most will think of would likely be setting rates and restrictions for transient segments, determining channel mix, calculating revenue-per-guest opportunities by segment, managing OTA’s and other electronic distribution channels, and providing sales staff with quotes for groups and functions. It is time for the lodging industry to reimagine both the title and role...
SHR Data Shows Record Direct Website Demand and Increased Conversion Rates
SHR | August 4, 2021
Hotels using the Windsurfer Booking Engine saw a combined record 3.3 million visitors in June 2021 and 3.4% of those travelers converted into bookings. HOUSTON, August 4, 2021 — Hotels using the Windsurfer Booking Engine from SHR, Sceptre Hospitality Resources, saw a record amount of traffic to their direct websites in June 2021 and converted 3.4% of that traffic, higher than most reported industry averages. Hotels have seen demand – mainly from leisure guests – creep up slowly but surely since the beginning of the year. But very few hoteliers predicted demand would rebound so quickly to higher levels than ever before. The 3.3 mil...
4 Alternative Uses for a Hotel During COVID-19
HotStats | July 30, 2020
Every second that hotels sit vacant, money is being burned. It’s an unfortunate byproduct of COVID-19. However, savvy hoteliers are finding creative ways to repurpose these now underused hotel spaces to generate extra revenue. Here are five alternative hotel revenue generators and how to put them into action: 1. First Responder Quarters By providing housing to first responders and essential workers, hotels can supply a much-needed service and bring in extra cash. In some cases, cities have offered to lease hotels for an estimated $1 million per month to house emergency medical staff. In addition to acting as an additional revenue ...
Generate More Revenue by Looking at Your Hotel Like an Owner
ROOMDEX | June 16, 2020
By Jos Schaap In both economics and business decision-making, “sunk cost” refers to costs that have already happened and cannot be recovered. These are different than ongoing costs that are spent on salaries, subscriptions, insurance, etc. The concept is important because sunk costs will stay the same regardless of the outcome of any action or decision you make in the future. In the area of hotels, the cost of construction (and/or hotel purchase) falls into the category of sunk cost. Let’s think of a hotel from the owner’s perspective. They want to maximize the value of the real estate they have purchased – every inch of it. ...
Hotel Budget Season: Design Your Most Profitable Channel Mix Strategy in 2019
Kristi White | October 16, 2018
By Kristi White, VP, Sales Engineering at The Rainmaker Group Travel customers have an unprecedented number of options to shop and book hotels, with new competitors constantly jumping into the distribution channel pool. Determining what inventory to sell through which channels has become a critical component in operating a profitable hotel. The industry is seeing online travel agencies (OTAs) with market values higher than many hotel brands and commissions rising at twice the rate of revenue growth.1 Despite these intimidating numbers, intermediary distribution channels should not be looked upon with enmity, but rather as key players in...
