The RRC System modifies the merchant model effect that distorts Average Daily Rate & RevPAR in standard industry reporting. Clients are also afforded a "Return on Labor" and "Return on Promo Investment" Reports that enable production evaluation. Revenue Management requires new tools that address advances in technology.

2. The next slide presents side-by-side hotels.
Each has $10 million in Gross Reservation Revenue and 114 units.
Standard industry analytics show you that …..
each has an ADR of $330, Occupancy of 70 ½% & RevPAR of $232.
Any hotel executive would have too believe that his/her hotel was performing
satisfactorily and taking market share.
But because of Channel Mix and the Merchant Model method that assumption
would be far from the truth.
See the analysis on the next page…..
Game Changing Analytics

3. Channel Mix & the Merchant Model creates this hidden $600k difference in Profit!

4. Standard Industry Analytics
combines Revenues paid
directly by guests with
revenues paid by Merchant
Model vendors in the NET
AMOUNT.

5. Standard Industry Analytics
Unless your hotels competitive set uses the exact same channel mix the Standard Industry Metric
result is scientifically flawed.
In a data driven society it is important that metrics used are accurately reported.
In an industry where a several dollar difference in Average Daily Rate causes executives to take note,
the above is close to shocking! The Merchant Model must be accounted for in this calculation.
KEY
ADR = Average Daily Rate
RRC = Revenue Report Card
Var. = Variance

6. More so then ever before, we’ve become a data driven society.
Much of this has come about because of what has been defined as the “big data
era” of computing. Advances in computing and internet capability, in the last
decade, have changed our lives and our ability to look at and analyze data in
large quantities. In turn, it empowers us to see things we could never see before
in defining the companies we do business with.

7. In the hotel industry, “new” computer capability
enables the hotel executive to look at hotel
reservation-vendors in a whole new way.
Hoteliers no longer need to define and categorize
“Vendors” by what they appear to be at face
value (i.e. “wholesalers”, on-line travel agents,
etc.) but rather can be viewed by the ways in
which they have historically filled our hotels.
Key Performance Indicators enable us to classify vendors by
attributes that complete the puzzle and fill the hotel optimally.
Big Data enables us to see things we could
never see before in our reservation vendors
Key Performance Indicators that are now
uncovered, provide us with a reliable road
map of how each vendor fills our hotel. The
end result provides us with the ability to pick
and choose vendors through a Vendor Mix,
who optimally fill our rooms and raise hotel
profitability.

8. We add actual channel-by-channel cost to the equation

9. The introduction of complete wage & promotional cost provides….
Return on Promotional Investments Return on Sales & Marketing Labor
Channel-by Channel COST

10. • Tens of millions of dollars are being spent to develop
revenue software, in outsourcing revenue management
to consultants and in educating revenue managers.
• Each software algorithm, each revenue consultant and
each revenue manager has a varied “algorithm” used to
reach optimal revenues.
• Until today no company has provided an independent
evaluation of optimization performance.
• Optimization performance is calculated after all wage,
benefits, promotional expenditures and the merchant
model effect is removed from each channel. Based on
the channel mix used and a weighted factor applied an
optimization score is calculated each week.
• The best use of optimization scores are to compare them
to the same period in historic results, season over
season results and in comparison to a hotels
competitive set.
• Growth in optimization over prior year results means
higher profitability and deposits to the bank.

11. Revenue Report Card LLC maintains your optimization evaluation for 4 months and generates all reports.
$1,195 is a onetime initial programing fee. This fee is credited toward the software purchase
$95 per week is paid to process hotel data weekly and email reports to designated executives.
1. The service can be cancelled at any time.
2. All information handled will be held in strict confidence and controlled.
3. Initial set-up requires limited interaction with your revenue manager, sales director and controller.
4. An automatic credit card charge for weekly billing will be generated on the 1st day of each month.

13. Your vendors will be set up in KPI driven Revenue Channels

14. Each Revenue Channel is supported by a Channel Ledger

15. Each vendor will be kept in your vendor dictionary

16. Each Channel
Can Contain
One
Or More
Promotional
Investments

17. Sales,
Marketing &
Reservation
Related
Labor is
Allocated
Based on
Time
Devoted

18. Each Promotional
Investment is tracked
Individual Promo
Investments
Amount earned for
each dollar spent

19. Revenue Chart
Of Channels
Merchant
Model
Adjusted
ADR
Overall COST
Overall
Profitability
Merchant
Model
Adjusted
RevPAR

20. Additional
Information –
1 of 3 pages

21. Additional
Information –
2 of 3 pages

22. Additional
Information –
3 of 3 pages

23. Thank you!
Contact us at:
Sales@RevenueReportCard.com
or (786) – 897 - 0652