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The Pros & Cons of the Commonly Used Booking Restrictions

Every hotelier has used a restriction in their pricing strategy at one time or another. Whether a minimum length of stay (MinLOS) requirement over a particularly busy period, or a restriction on a particular day preventing new arrivals (Closed to Arrival – CTA), these restrictions are a common business practice. But are they the best way to manage pricing and occupancy for a hotel on a day-to-day basis? In this …Read More

The Next Frontier in Revenue Management: Big Data for Hoteliers

Big Data seems to have been the buzzword in most industries for the last five years. But unlike many other industries that have integrated Big Data as a key component of their operations, the hotel industry is lagging very far behind. In my opinion, this is a big – and costly – mistake to make! You might be asking yourself: “How can my hotel leverage the power of Big Data?” …Read More

Get your Revenue Management in Shape for 2015!

Get your Revenue Management in Shape for 2015! During the first few days of a new year, everyone is busy planning their personal new year’s resolutions. But although most of us spend the beginning of each year focused on self-improvement, we rarely think about new year’s resolutions for our business. For hotels, this is an especially important practice because your revenue management practices can make-or-break your hotel’s profitability for the …Read More

Deep Discounting Doesn’t Work

Black Friday is a day filled with discounts on every product imaginable and for days beforehand, serious bargain-hunters are strategically planning their “plans of attack”. This past Black Friday, which took place last month, gave US discount shoppers a fantastic opportunity: the ability to purchase hotel stays at many properties across the country for only $7 per night. Sounds great right? Well, it was… for consumers. However, for the hotels …Read More

Think Beyond the Compset

For many, many years, hotels have used their property’s compset (also known as the competitive set) in order to gauge their hotel’s performance against the competition. That is definitely a smart business decision! But unfortunately, many of those same hotels are using their compset as their only basis for determining pricing of their rooms – which is not the most effective way of determining nightly rates. The concept of a …Read More

The Stock Market vs. The Hotel Industry

The history of the stock market… I’m sure it’s not a topic that most in the hospitality industry have ever contemplated in great detail but that should change right now. Why? Because hoteliers and revenue managers can learn a great deal from the evolution of stock market technology that will benefit their property’s revenues. The first stock exchange was established in London. The original home of the London stock exchange …Read More

Is Revenue Management Only Useful For Luxury Hotels?

  In the past, revenue management was a practice that only high-end, luxury properties implemented for two major reasons: first, it was hugely cost prohibitive, and second, it required the hotel to hire a revenue manager to execute the processes (or oversee the revenue management system – RMS). Only properties with large budgets – both for revenue management and personnel – could actually afford to use revenue management to price …Read More

Three Tough Questions for the Hotel Industry

  I was taking a road trip a few weeks back that really started me thinking about the current state of the hotel industry. The trip started in Miami Beach, Florida and over the span of ten days/nine nights, I drove to Georgia, South and North Carolina, where I was attending a conference. During the drive, I stopped in various cities where I stayed in a variety of hotels for …Read More

The Billboard Effect… Revisited

It seems like the summer is prime time for hotels and industry experts to re-examine the basic revenue management concepts that they have always held to be true. Most recently, an article was published on Tnooz.com called “Does the Expedia billboard effect still exist for hotels?”, which examines the billboard effect and the various studies done by Cornell University, which proved it to be a valid phenomenon. For those who …Read More

Revenue Management: How to Price Your Rooms Correctly Every Time

In today’s highly competitive travel industry, implementing effective real-time pricing strategies has become an operational imperative for all hotels, no matter their size, type or star rating. While revenue management has been a hotel buzzword for years, many hoteliers seem to have conflicting understandings about what exactly constitutes revenue management. So, I’m here to remind you of the fundamental principles of revenue management and why revenue management technology is so …Read More

TripConnect: A Hotelier’s Best Friend?

In October 2013, TripAdvisor launched an advertising bidding tool called TripConnect, a new metasearch channel (one that aggregates all of the available online prices in a single list) that enabled hotels to send potential bookings originating from the site to their own website instead of to an OTA. TripConnects breakthrough bidding process will allow independent hotels no matter their size, star rating, or type to significantly increase the number of …Read More

Bitcoin: The Newest Way to Pay for Hotel Rooms

Will your property accept Bitcoin as an alternative method of payment? Our answer is ‘yes’, because if you don’t, you could be losing out on a valuable revenue stream – all the customers who want to pay solely with Bitcoins. Once you’ve decided to accept Bitcoins, you must ensure that your online booking engine is Bitcoin compatible. REVPAR GURU has recently partnered with BitPay to release GuestLeader, the world’s first …Read More

How to Increase Direct Bookings

Promoting your property online is crucial to the success of any hotels’ business today. Properly promoting your hotel through the online channel (including OTAs, the direct channel, social media, etc.) can help a property drastically increase its brand recognition with potential guests and will help to sustain your competitive edge – as great online visibility ultimately leads to increased sales. Though OTAs have radically changed the way that hotels do …Read More

Is Your Revenue Management Strategy “Mobile Compatible”?

If you have read any hotel trade publications, listened to the news or watched the average consumer book a vacation in the past year, you may already know about mobile commerce (or mCommerce). Just like the name implies, mCommerce is any purchase made via mobile device, including smartphones or tablets. While m-commerce used to be used primarily by tech-savvy Millenials, it has now gone mainstream across all industries: “mCommerce constitutes …Read More

Metasearch OTAs: Your customers are using them, are you?

Metasearch OTAS enable consumers to search all the major OTAs at once through a single website simultaneously – making metasearch OTAs a one-stop shop to find the best hotel for an upcoming vacation or a business trip. Currently, the most popular metasearch OTAs are Hotels combined, Kayak, Hipmunk, Trivago and TripAdvisor, but new ones are being developed every day. The new buzzword for the hotel industry is ‘metasearch’. Although there have …Read More

The Hotelier’s Invisible Enemy

Although it’s only the first week of 2014, a new enemy for the hotel industry has surfaced. While the majority of hotels are aware of its existence, most haven’t realized the negative effect that it could have on hotels’ revenues in the year to come (and beyond). This enemy has now grown larger than any of the international branded hotels and continues to grow even larger at great speed. This …Read More

TRevPAR: The Most Effective Metric for Revenue Managers?

There has been a great deal of discussion as of late as to the value of the revenue management metric TRevPar (Total Revenue per Available Room). TRevPAR is calculated by dividing the total net revenues of a property (room revenues plus ancillary revenue streams such as food and beverage, rentals, etc.) by the total available rooms. Many industry experts are saying that TRevPAR is a more valuable metric than RevPAR …Read More

Pricing Systems 2.0 Part II

Last week, I wrote Part One of this article series, which provides a checklist for hoteliers to determine whether your revenue management system is up to par for 2014. As I’m sure you know, the online and mobile channels are growing rapidly so if your RMS is not optimized for both of these channels, you will be leaving money on the table. Let’s take a look at some other items …Read More

Pricing Systems 2.0 Pt. 1

The end of every year brings a time for everyone to look back on the year prior and make resolutions for how we will live and what we will accomplish in the coming year. As we near the beginning of 2014, many hoteliers will be doing the same. Before deciding on their action plan for 2014, they will need to first examine the successes and failures of the year prior, …Read More

The Major Mistake Most Hotels Make…

Today, hoteliers know that it is imperative to have a booking engine in your property’s corporate website; if you don’t, your property would be losing out on bookings, and relying solely on the (costly) OTAs to gain bookings through the online channel. But now there is a new update to a property’s booking engine that all hotels MUST have, or else they are losing out on valuable online revenue and …Read More