1. International Conference on Travel
Technology, India
9th
June , 2013
The Leela, Kovalam
www.lemontreehotels.com

2. • 22 hotels, 2600 owned and operated rooms in
14 cities
• Ranked in the Top 50 Great Places to Work
2012 among large companies (>1000
employees)
• 16 hotels have been awarded the TripAdvisor
Certificate of Excellence 2013
• Outlook Traveller Readers Choice Award 2012:
Best Mid-range Hotel Chain in India
• Lonely Planet Travel Awards 2013: Amongst
the top two brands of Best Hotel For Value
• National Award, Government of India -
Ministry of Social Justice and Empowerment:
Best Employer (2011) and Barrier-free
Environment for Persons with Disabilities
(2012)

3. Revenue Management Strategies

4. Revenue Management practices generates over $100 M for our hotels
every year.
Revenue Management has contributed millions to the bottom line and
has educated our people to manage their businesses more
effectively.
Bill Marriott Jr.: Chairman, Marriott Hotels

5. RM Is Critical To
Bottom Line Success

6. Selling the right room to the right customer at the right
time through the right channel for the highest possible price.
• Who is the right customer?
• What is the right time?
• What is the right channel?
• How do you decide the highest possible price?
What Is RM?

8. Hotel Challenges Today
• Low occupancy rate
• Many intermedearies between the hotel and the corporate
customer
• Sinking room rates, which lead to lower revenue per booking

9. • Understand your market/customerUnderstand your market/customer
• Define your product positioningDefine your product positioning
• Drive profitable distributionDrive profitable distribution
• Pursue REVPAR, not ARRPursue REVPAR, not ARR
• Drive collaborationDrive collaboration
RM Today:
Strategic Not Tactical

10. Market
Unqualified
Customer
Prospective
Customer
Customer
Satisfied
Customer
Repeat
Customer
Sell
Fulfill
Care
Customer Is King
Value to the customer
Valuetotheenterprise

11. 2010 2011
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
25% 47% 68% 66% 70% 73% 48% 36% 56% 71% 79% 96% 100% 34%
43% 37% 32% 58% 95% 92% 80% 34% 59% 35% 40% 69% 54% 31%
68% 54% 60% 62% 100% 100% 68% 29% 41% 56% 54% 69% 93% 74%
Illustrative Example for January 26
2625 262527 24
Understand Market Behavior
PS
TT
PP
TT
S
S
Normal
Holiday
impact
Note: The actual impact of Holiday falling on a weekdays depends on consumer
behaviour. If guests travel usually for two days in a city, a holiday on Tuesday will
effect Monday and a holiday on Wednesday will effect Tuesday / Thursday.
Festivals like Diwali can affect entire weeks.

12. Product Positioning
Location
Brand/Flag
Services
Facilities/Amenities
Price
Static
Dynamic
Determinant
(can’t be changed)
Static
(can be changed)
Incremental
Filter/Stimulant
Competitive
pricing
Airline
pricing
Demand
conditions

13. Distribution Strategy
• Maintain rate parityMaintain rate parity
• Dynamic pricing and packagingDynamic pricing and packaging
• Explore new distribution avenuesExplore new distribution avenues

14. Target: REVPAR Optimization
DemandDemand
Focus: OccupancyFocus: Occupancy
Focus: ARRFocus: ARR

15. Revenue Management Intersects
Sales, Marketing, CRM and Ops.
RM
Sales
Ops.
Mktg.
& CRM

16. • Leverage your brandLeverage your brand
• Invest in effective technologyInvest in effective technology
• Build successful partner relationshipsBuild successful partner relationships
Key Drivers: RM Success

17. Thank You
tarun.lakhanppal@lemontreehotels.com
www.lemontreehotels.com