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De Mystifying Revenue Management

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Velvet Chainsaw Consulting
Velvet Chainsaw Consulting

This document provides an overview of key concepts in revenue management, including definitions, strategies, tools, and best practices. It discusses how revenue management is applied to meetings and group business through techniques like rate fences, demand forecasting, displacement analysis, and yield meetings. Tips are provided for negotiating group contracts and responding effectively to RFPs.

TravelEconomy & Finance
1 of 37
DeMystifying Revenue Management PCMA POWER Chapter September 12, 2007
Today’s Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
Who’s going to win Sunday?
Revenue Management Definition ,[object Object]
Consumer Case
6 Revenue Mgmt. Attributes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What other business could use revenue management?
Rev. Mgmt. Strategic Levers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rate Fences ,[object Object],[object Object],[object Object],[object Object],[object Object]
RevPAR Calculation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Hot/Warm/Cold ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Control Chart Source – Sherry Kimes, Cornell University 150 room hotel
Booking Curve Forecast Days before arrival % of Peak
Group Business Evaluators ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Revenue Management Analysis
Getting on the Same Page Revenue Management Operations Sales & Marketing
Business Review Meetings ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Group Booking Scenario ,[object Object],[object Object],[object Object],[object Object],[object Object]
Group ,[object Object],[object Object],[object Object],[object Object]
Negotiation Tactic ,[object Object],[object Object]
Other Revenue Meetings ,[object Object],[object Object]
RevPAR Benchmarking
Beat the Competition!
 
[object Object],[object Object],[object Object],[object Object],[object Object]
Displacement Analysis ,[object Object],[object Object],[object Object]
Group vs. Transient 40 Group Rooms 40 Transient Rooms Source: Defining Revenue Management: Top Line to Bottom Line
Displacement Exercise
RFP Overload – Case Study ,[object Object]
RFP Overload – Response ,[object Object],[object Object]
Does your RFP get noticed? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Info Needed for a Quality Bid ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Marriott Key Center Rates $129 Mar-07 Pri-Med $179 Feb-07 Pace Ambassadors Conference $144 Oct-07 Assoc. for Iron & Steel Training Seminar $119 Sep-07 Federation of Tax Administrators Investigation Class $139 Oct-07 Midwest School Social Work Council Conference $139 May-07 Urban Libraries Council $149 Oct-07 Mechanical Construction Student Chapter Summit $99 Oct-07 34 th Annual Natural Areas Conference $139 May-07 School of Dental Medicine Alumni CWRU Rate Month/Yr Group
Quantify Concessions ,[object Object],[object Object],[object Object],[object Object]
 
Negotiating Pitfalls ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Questions

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De Mystifying Revenue Management

Editor's Notes

  1. Are you wondering who the Revenue Manager at a hotel is and what impact he or she has on your negotiations? Do you want to better understand how hotels evaluate group business or manage and control inventory and pricing to maximize RevPAR? This session will help remove some of the mystery of revenue management and give valuable tips on how you can best position your business to attain desired results. Learner Outcomes 1. Understand how hotels are using revenue management pricing strategies to increase revenues and drive profit. 2. Gain new insights into how a hotel analyzes and prices group business. 3. Learn how hotels use overbooking and post cut off pricing strategies to maximize occupancy and rate.