Advertisement

More Related Content

Advertisement

IHG Revenue Deck

  1. IHG Revenue Services SEAK N o v 2 0 2 1
  2. The world of Revenue Management has changed The landscape has become complex creating a need to have a team of experts driving the revenue strategy. Manual Search OTA & Brand Sites Wholesale, Meta Pricing parity Holidex Plus IHG® Concerto™ Platform capability Single Factor (Rooms) Multiple Factors (Total revenue) Revenue optimisation Excel Sheets Cloud Based Intuitive AI (Tableau) Insights and analytics Then Now Then Now Then Now Then Now Then Now Market Pricing Data Driven Pricing Pricing technique Automated Reports Rate monitoring Then Now Then, 2000 Now, 2021 One person rooms focused approach Growing complexity from multiple variables Team of trained experts from analysts to Performance directors
  3. IHG Revenue (RMH) is an off-property resource solution offering: • A team of highly skilled, trained and experienced revenue management specialists who partner with hotel teams to: • Maximize total revenue performance, • Leverage IHG’s system & tools better and faster, • Drive the distribution & segment strategy. • Deliver RGI, RevPAR & Total Revenue growth. IHG Revenue Services 3
  4. 2.1% 0.3% 1.2% 0.3% 100.8 107.5 RGI YoY SEAK Performance in a Normal Year - 2019 4 Comparison of KPI uplift delivered by IHG revenue (RMH) vs Non IHG Rev for FY 2019 vs FY 2018 Comparable hotels SEAK IHG Revenue (RMH) hotels in EMEAA 2018 RGI +1.3pts vs RGI -1.1pts RGI MPI YoY ARI YoY RevPAR YoY Total Revenue YoY +0.9 +1.8 +0.4 +11.3 +3.3 IHG Revenue Non IHG Rev *Only comparable hotels for each respective FY results *Revenue Services Status based on 2021 -0.9% 0.0%
  5. Hotel Revenue Manager VS IHG Revenue Talent 1–2 people > An organisation of revenue experts Annual leave / sick pay affects business continuity > Always-on Requires training at hotel’s expense > Assessed and trained at IHG’s expense Subject to talent availability and capability in market > Skilled at leveraging IHG’s proprietary systems and tools to drive performance Third party suppliers handle data > Data securely managed by IHG Revenue organisation Hassle free and effective..
  6. IHG Revenue (RMH) SEAK service level overview RevMANAGE RevASSIST RevADVICE • Works in partnership with GM, DOSM and on property Revenue Assistant to drive performance. • 1 Resource shared between 3 hotels • Fee range: $1,200 - $4,000 per month depending on market and complexity. • Senior IHG Revenue resource to compliment on-site RM leader and assist hotel in RM Strategy. • 1 Resource shared between 4 hotels • Fee range: $900 - $3,500 per month depending on market and complexity. • Provides strategic guidance, daily reporting and a weekly call. • Popular with Franchise estate. • 1 Resource shared between 8 hotels • Fee range: $700 - $2,000 per month depending on market and complexity.
  7. © 2017 IHG 8 There is support at every step IMPLEMENT ATION & ADOPTION IHG REVENUE & HOTEL COLLABORA TION DEFINE WAYS OF WORKING APPLY RIGHT RESOURCES TARGET HOTEL NEEDS
  8. 12 Appendix
  9. Service Levels & accountability - SEAK REVassist: Strategic or Tactical Strategic: For Managed, ToRE focused, big box properties who need a senior Revenue resource to compliment on-site Revenue Manager / Assistant. IHG Revenue assists the hotel in the leadership of RM strategies and actions. 1 PRM to 3/4 hotels. Tactical: Managed, ToRE focused, big box properties who need a tactical Revenue resource to compliment on-site Revenue Director / Leader. IHG Revenue tactically assists the hotels by implementing strategies set by the on-property DOR. 1 PRM to 2/3 hotels. REVmanage: Bespoke or Manage Bespoke: For highly complex Managed, big box properties with specific revenue criteria. IHG Revenue (RMH) assumes role of hotel Revenue Manager, Full Time and dedicated to the hotel. Manage: For Managed properties that are weighed more heavily to rooms revenue generation. Shared resource, IHG Revenue (RMH) assumes role of hotel Revenue Manager, working in partnership with GM, DOSM and on property Revenue Assistant to drive strategies and initiatives. 1 PRM to 2/3 hotels. High touch High touch
  10. The Revenue Cycle – How does it work? Using Rev-Gen cycle to drive strategy and keep tactical actions SMART There are many components to consider to enable a successful revenue management culture and process in a hotel. For simplicity, we can summarize these into four main areas: • Forecasting demand • Creating demand • Managing demand • Retaining demand The four areas can be placed together to form a revenue management cycle illustrated here. Each area interacts with one another, and play an equally important role in the revenue management cycle.
  11. IHG® Revenue Generation meeting The Revenue Generation Meeting is not to be confused with the other revenue related meetings that may already be taking place in the hotel. Based on our findings, except for the Revenue Generation Meeting, the below table shows the common types of revenue related meetings that are already happening in most of our hotels. Each of these meetings have different objectives that are necessary to ensure that the hotel’s revenue operations are being run efficiently. It is critical that a Revenue Leader understands the purpose of each meeting and how it relates to one another – this will prevent overlap of content covered in each of these meetings. Price meeting Yield meeting Conversion meeting Forecast meeting Revenue Generation Meeting Frequency Daily Weekly Weekly Monthly (Second week of the month) Monthly (Fourth week of the month) Duration 30 minutes 60 minutes 60 minutes 45 minutes 90 minutes Objective A daily view with tactical conversation of the next 30 days to ensure optimum pricing, yielding, demand and shifting share opportunities are taken across all market segments. A detailed and tactical conversation of the main booking window which works through actions to ensure yielding, demand and shifting share opportunities are taken across all market segments. Provide update of tentative Group/MICE business and assist in conversion. To gain alignment on the forecast submission. To discuss hotel’s commercial plan and decide on strategies to implement for the next 12 months that is aimed at generating more demand and beating the competition. Participants (suggested) Revenue Team, DOSM, Reservation Lead. General Manager, Director of Sales & Marketing, Director of Catering Sales, Reservations Lead, Director of Revenue, Director of Food & Beverage. Director of Catering Sales, Director of Sales & Marketing, Director of Revenue Management. GM, FC, DORM, DOSM, DOFB. GM, DOSM, DORM, DOFB, DOCS, DOR, EC + HOD of Revenue generating departments.
  12. IHG® Revenue Cycle – People IHG® Revenue is a critical member of the hotel team, with a focus on driving total revenue and building a revenue culture, as well as assisting to further enhance Commercial capabilities within the team. They are committed in assisting to further build Commercial capability. Leveraging robust data, supported by an extended team, along with in market insights allows well defined Commercial strategies to be made by IHG Revenue, GM and HOD’s of revenue driving departments. Clear processes allows an integrated Commercial mindset amongst all the team. It is imperative for hotel teams to also business partner and attend all scheduled calls/meetings. IHG Revenue Director Sets tactical revenue strategy by sub-region for IHG revenue & non IHG revenue sets IHG Senior Portfolio Revenue Manager Leads & develops revenue talent & regional performance strategy IHG Portfolio Revenue Manager Manages portfolio of hotels to drive performance IHG REVanalysis & Manila Ops Insights & Reporting – ensuring decisions are informed by data and insights, enabling Revenue Manager to make faster & more agile decisions It is critical that every team member is involved and understand their role and responsibilities. This One Team approach is critical to the success of our business, across all revenue streams, in order to be a leader in our market. Only then can a true performance culture and results be achieved.
  13. IHG® Revenue Cycle – Forecast The monthly Forecast Meeting allows for the GM, Finance, Sales & Marketing, R&B Leads and IHG Revenue to obtain alignment prior to forecast submission. Accurate forecasting is not only for IHG as a whole, it is also essential for all departments to ensure efficiencies are made that eliminates unnecessary spend, adjust manning as required and allows more maximum profitability flow through, resulting in optimum GOP.
  14. IHG® Revenue Cycle – Create Demand Where your total revenue Commercial plan is discussed with a strategic long-term lens (next 12 months) for all revenue streams, that is derived from the monthly Revenue Generation Meeting. Focus is on creating demand in order to beat the competition. Key components, outside of the meeting itself are: • Prework: Uncovering trends, identifying gaps / opportunities as well as identifying any drivers for the current state of business. Quality of the prework is critical as it will influence outcomes. • Action plan: Outlining your gaps and opportunities, these would also need to incorporate both Market and Channel mix strategies. Provides clear goals, commitment and requirements that drives Commercial revenue performance and builds a solid revenue culture.
  15. IHG® Revenue Cycle – Manage Demand Varying between daily pricing call and weekly yield meeting, focus is purely on tactical outcomes for all market segments and revenue streams to ensure all opportunities are leveraged in order to shift market share. The daily pricing call is a short conversation with IHG Revenue, DOSM and Reservations leader looking at the next 30 days. The weekly yield meeting focusing on the booking window with IHG Revenue, GM, Sales & Marketing, Catering & Sales, Reservations and R&B Leads. All outcomes with clear responsibilities and timelines are discussed.
  16. IHG® Revenue Cycle – Retain Demand Part of any retention strategy that sits outside of the customer service profit chain includes Commercial Levers, such as Loyalty. With retention strategies in mind, it allows a clear focus within the weekly Conversion Meeting. Updates need to be provided by the respective leader on all tentative Groups/MICE business and as a team, discuss options and actions that will assist in conversion. Clear outcomes and action will be decided and distributed amongst the attendees of Sales & Catering, Sales & Marketing, Reservations Leads and IHG Revenue.
  17. In summary; the key benefits With today’s hospitality industry related challenges, more than ever before, having a constantly trained team who are perfectly knowledgeable of both IHG’s systems and the fast changing conditions is crucial to the performance of your hotel considering the market & complexity. Market and hotel complexity • Importance of understanding client behaviour (segment and channel approach) • Necessity to deal with volatile demand: depending on location, city events and economical conditions means we need to be agile and fast to adapt • The need to define a long-term strategy as well as to focus on current tactical aspects (pricing, system optimisation) to drive the highest revenue possible and protect margins Hotel’s daily operation • Hotel teams are focussing on guest satisfaction and daily operations, lacking time to train on Revenue Management. • Especially in mainstream brands and during opening or re-opening, hotels don’t have enough time to focus on the strategy and the system • Employee turnover generates a loss of knowledge and gaps in strategy implementation and brand/system knowledge
Advertisement