room revenue
Hilton Cuts 2024 Room Revenue Growth Forecast on Slowing Consumer Spending
Reuters | October 23, 2024
By Doyinsola Oladipo and Aishwarya Jain (Reuters) -Hilton Worldwide lowered its annual room revenue growth and net income forecasts as steady demand in Europe and business travel were not enough to counter a fall in demand in China and disruptions to its U.S. business during the third quarter. Shares of Hilton, which owns hotel brands such as Waldorf Astoria and DoubleTree, were down 2% on Wednesday. Rival Marriott International also fell 3%. Global travel demand has been facing challenges as American and Chinese consumers remain wary of macroeconomic trends. Ongoing labor disputes, the upcoming election and weather disruptions in the U....
IHG: Q3 Trading Update to 30 September 2024
IHG Hotels & Resorts | October 22, 2024
Highlights Q3 global RevPAR +1.5%, with Americas +1.7%, EMEAA +4.9% and Greater China -10.3% Q3 global rooms revenue on a comparable hotels basis saw Groups demand +6%, Business +2% and Leisure broadly flat on same quarter last year YTD global RevPAR +2.4%, with Americas +1.8%, EMEAA +6.4% and Greater China -5.6% Average daily rate +1.7% and occupancy -0.1%pts in Q3, +1.9% and +0.4%pts respectively YTD Gross system size growth +5.9% YOY, +3.7% YTD; opened 17.5k rooms (98 hotels) in Q3, representing another quarter of sequential improvement and very significantly ahead of the 7.7k in the same period last year Net system s...
The Profit-Oriented Revenue Management Revolution To Maximize Profitability in Hospitality
Detlev Remy | July 30, 2024
Traditional revenue management concepts in the hospitality industry have evolved significantly in recent years due to technological changes, consumer behavior, and market dynamics. Where revenue management used to focus on maximizing room revenue alone, profit-oriented revenue management shifted the focus to ancillary revenue streams like food and beverage, spa services, events, and other on-site amenities. Instead of static pricing models that were used in the past, hotels can now rely on dynamic pricing models that adjust rates in real time based on demand, competition, and market conditions using advanced algorithms and AI. Whereas revenu...
An Immediate Way to Drive Revenue to Your Hotel’s Top and Bottom Lines
Don Farrell | July 19, 2024
By Don Farrell Who wouldn’t want to make a few hundred thousand more in immediate room revenue and see most of that go to the bottom line? In fact, it may be the largest account your hotel can go after, particularly if you are a focused service property. Where can you find this low-lying fruit and how can you harvest it? Your Single Largest Account is at your Front Desk by Converting More Reservation Inquiries And this is the best form of revenue…..the single room requests that come into your front desk in the form of phone inquiries and walk-ins. Imagine what losing one of your top accounts would look like. With front desk reser...
Hotel Performance Standouts During Beyonce’s World Tour
CoStar | October 25, 2023
Analysis by M. Brian Riley Concerts and major events have always been important revenue opportunities for hotels, but 2023 has felt like the “year of the concert” with major tour generating headlines and lifting performance all over the world. In the U.S., much of the attention went toward Taylor Swift’s The Eras Tour, which STR previously estimated added $208 million in U.S. room revenue. More recently though, there has been another female pop star rocking the economy – and in many markets, hotel performance. Beyoncé’s Renaissance World Tour generated a projected U.S. economic impact of $4.5 billion, according ...
Guest Loyalty Programs Provide, But They Cost
Robert Mandelbaum, Christine Bang | September 5, 2023
By Robert Mandelbaum and Christine Bang Over the years, the fees hotel owners pay to franchise companies have typically grown at a pace greater than the rise in hotel rooms revenue. Most franchise-related fees are charged as a percent of rooms revenue, and therefore, by assessing the relative changes in rooms revenue and franchise fees we can make some assumptions. In 2021, acknowledging the financial stress hotel owners faced during the pandemic, the franchise companies were sympathetic and provided some reprieve. While rooms revenue increased by 55.4% in 2021, total franchise-related fees rose by just 45.9%. Equilibrium returned in ...
The Hotel Profit Playbook: Data-Driven Strategies to Move Beyond Rooms Revenue
myDigitalOffice (MDO) | June 7, 2023
Understanding labor and amenity costs, analyzing non-room revenue trends, and centralizing data from all revenue sources is arming hospitality leadership with the right data to make more profitable decisions. BETHESDA, MD. – MDO, in collaboration with Stayntouch and Revenue Analytics, has released "The Hotel Profit Playbook: Data-Driven Strategies to Move Beyond Rooms Revenue," a special report aimed at redefining the way hoteliers approach profit management. The Hotel Profit Playbook introduces the concept of Total Profit Optimization, defined as the act of broadening operational strategies to include focus on all...
Charging Four Figures in 13 Critical Steps
Adam and Larry Mogelonsky | March 8, 2023
By Adam Mogelonsky, Larry Mogelonsky There’s something special about crossing the threshold of $1,000 per night. With inflation roaring through the world, many properties – luxury, upscale or otherwise – are approaching this event horizon. But with it comes a profound psychological shift in guest expectations. Unless, say, yielding from $859 per night to $959 per night, this particular move involves customers seeing an extra digit in the price tag – the perception of the increase is disproportionally greater. This same principle is why retailers charge $9.95 instead of a flat $10.00; it appears cheaper. In the back of every gues...
