Ideas to improve hotel profitability.

Allocating revenue to the right hotel departments is one of the main challenges when creating packages. Hotel directors and commercial teams are often at opposite ends when it comes to commercial initiatives. One side worries that the other’s ideas could get out of hand; the other wants to sell and hopes the director will find…

The essential tools for a revenue manager Hotel revenue management does not depend on a single application. Good decisions come from combining reliable data, a well-configured distribution setup and tools that help interpret demand and act quickly. Technology has come a long way, but it is still common to work with several platforms connected to…

Should ADR and RevPAR include meal plans? I have been calculating ADR and RevPAR with meal plans included for over a year, for two main reasons: For a while I struggled with this approach, because I was not fully comfortable with it. More recently, though, I have carried out several analyses that support this model.…

Guarantees can seem like deals made behind closed doors This is not the first time I have heard someone speak negatively about a hotel’s guarantees with a tour operator. At first glance, they may seem like a poor idea, especially if we start from the premise that a revenue manager should strongly prioritise the direct…

I’ve got it, and I’m certain: the rate hotels distribute is like a bag of potatoes I have not gone mad—well, maybe a little. After reading a post by Carlos Daniel titled “Rate disparity through added value”, which compares hotel rate distribution with a small market garden, I cannot stop thinking about what hotel pricing…

How to handle an overbooking situation Following United Airlines’ appalling treatment of passengers and its poor handling of an overbooking situation, I felt compelled to write this article about how to manage overbooking. If you have not seen it, the video is below. Source: El Confidencial. Although overbooking is permitted in some countries, it is…