Revenue Management & Channel Opt

In simple terms, share of wallet (SOW) is the percentage of a customer’s total spending that is captured by a business. For hoteliers, once a guest has made a booking, the ultimate goal is to maximize the revenues that the guest generates for each stay. The key to achieving this goal is understanding the guest’s continuously shifting mindset around cost. The potential of conversion of every purchase opportunity after initial reservation acquisition is dependent upon finding the right context to present the offer.

Cost-optimization has always been a central notion in revenue management. That being said, the pandemic brought renewed attention to the topic. Today, more than ever, proper cost control is crucial to navigate these difficult waters and prepare for the "new normal." Whether we like it or not, every single decision revenue managers take on a daily basis, has an impact on the bottom line, meaning that revenue management is not only about optimizing the revenue streams, but also about increasing profitability. Favoring the distribution channels with the highest profit has become imperative in our industry. But how can hotels calculate the cost-per-acquisition of each channel? What should be taken into consideration? And how can this analysis influence one's distribution decisions?

Before the website and marketing plan, before listing your meeting space on Cvent, before your sales team responds to that first lead, someone, somewhere, decided on the product. The product?

Many hoteliers struggle with the same revenue management questions, especially during times of significant market uncertainty, like we are currently experiencing. Never fear; I'm here to answer hoteliers’ top 10 questions about revenue management in the times of COVID:

EHL Success Stories: Start-Up Edition is a series to show support to our EHL Family and, more specifically, our hard-working AEHL entrepreneurs. This project aims to showcase EHL's entrepreneur mindsets, support new and upcoming ideas and businesses. While overcoming a challenging time for all companies, these Start Ups prove that resilience and hard work can overcome any problem.

The Hotel Operator Guide highlights insights on existing and pipeline supply’s management structures, geographic distribution, as well as, room supply growth by operator and brand. The purpose of this publication is to serve owners and investors an unique reference about the growth and scale of international operators across regions and brands.

As the hospitality industry moves toward recovery, many hotel owners are re-evaluating the management of their properties. A good manager can bring great value to a property; a poor manager can reduce its value.

Innovation is the process of creating value through the implementation of new ideas. Crises generate the exact opposite outcome: tremendous value destruction. Innovation, therefore, seems particularly well-suited to act as a powerful countervailing force in times of hardship. The process of innovation under stable conditions, while not straightforward, is relatively well understood.

Do your hotel financial statements give you the information you need to effectively run your business? Are you able to see if your profits are where they should be in an enhanced top-line statement? Do your statements measure flow thru? Do you record your room’s business by proper segments and track the rooms occupied, rate and revenue in each segment? Do you record customers served in F&B and do you separate meal periods? Do you record liquor, beer, wine, and mineral sales on your financials separately? Do you measure labor productivity in your financials? Do you record hours of work in your financials? Do you have payroll segmented by management and hourly classifications? Do you have a separate supplemental payroll and benefits statement? Do you track arrivals and departures?

Remote work is here to stay. Even if companies start to require teams to return to a central office following full population vaccination, the benefits of allowing for flexible work conditions are too good to ignore. For the employer it can mean vastly reduced rental costs, while for the employee it means less time spent commuting and the ability to handle life’s other responsibilities more adeptly like young kids. But the drawback is the monotony of working, eating, relaxing and sleeping in the same place.