Hotel's Revenue Management Process #6 Session by Dino Leonandri

1. REVENUE MEETING
By : Dr. Dino Leonandri, MM, CHA

2. WHO SHOULD ATTEND THE HOTEL MEETING?
Director of Revenue Management (Meeting Leader)
01
General Manager
02
Executive Committee (DOSM, RDM, FOM, EHK, FBM,
Catering Mgr
03
E-Commerce and/or Digital Marketing Manager
Members of other disciplines are welcome to attend and
provide input
04

3. The Revenue Strategy team will meet twice monthly to review a market-segmented forecast for the following periods:
Next 7 days
Next 30 days
Next 90 days
Next financial year end period
Next 24-36 month period, and/or in alignment with contracted room night commitments
Lead by the Director of Revenue Management, the team will review the current business on books as well as the forecast for the above
mentioned periods. The focus is placed on maximising revenues over all periods, with a determination made for high and low demand p
eriods as to whether a volume strategy or a rate strategy is to be implemented. The team will assume additional projects that speak to th
e overall revenue strategy of the hotel within all outlets.
OBJECTIVES FOR THE MEETING

4. HISTORICAL ANALYSIS
1. Follow up action items and minutes from previous
week’s meeting
2. Review prior week’s strategy and outcomes to critique
opportunities in all sales and operational areas
3. Review the cumulative assessment of how the hotel is
performing thus far vs. last year, budget, and projection
while predicting how hotel will finish the each identified
period

5. FUTURE ANALYSIS
1. Review future group sales strategies and tools to ensure
consistent rate quoting for overall revenue strategy
2. Competition update to include: transient call around, reader
boards, competitor’s large future groups, automated
shopping service results
3. Review transient and group restrictions for next 3 months
with focus on next 30 days. Make changes to restrictions
as needed. Discuss need times and overbooking
philosophies.
4. Review high demand dates to ensure appropriate strategy
exists across all distribution channels
5. Key pivotal factors: (What if’s) eg: if IBM group goes definite
it will impact our strategy this way
6. Special promotions tracking: wins/losses

6. 5 Reports Generated By Revenue Management Should Look at
1. Reservations
This hotel reservation report is one of the most important ones for hoteliers. It helps in knowing room category-wise guest reservation
details including its source, cancelled reservation and no-shows, temporary reservations, etc for any particular date range.
Furthermore, this very report also gives you a clear insight on your reservation summary, reservation (ADR) report, key reservation trends
etc.
This report ensures that you get to know which rooms are selling fast, from which sources you are getting good booking and which rate
gets you maximum reservations.
2. Price Analysis
Pricing and forecasting room revenue is a major player — whether a property is booked or overlooked. Revenue managers need to use cor
rect revenue management forecasting methods to determine necessary pricing adjustments for high or low activity days, or what the market
is reflecting.
This is where this report comes into the picture – it contains daily, weekly, monthly, quarterly and yearly reports that provide historical
pricing information on your property’s past performance. You can analyze them and can come up with accurate forecasting. Thus, you can
set the right price to sell the right room to the right guests at the right time to see more revenue.
3. Competition’s Review
There are several methods of doing revenue management right and one of them is to look at what your competitors are doing. Using the co
rrect hospitality revenue management services and methods, you can look at the competitors’ prices, special offers and their overall
bookings.

7. 4. Channel Analysis
If you are not operating on a cloud PMS, your channels may not be streamlined and it is important to know that all your
channels have rooms available to avoid rate parity issues.
5. Market Segment
Look more in-depth into the segments that are booking rooms every week.
Many reports can be easily compiled and compared to a state-of-the-art property management system. When all the data is in
one place, it makes gathering and reading reports simple, leaving more time to put toward a better business strategy.
5 Reports Generated By Revenue Management Should Look at

8. Four ways to keep your revenue management team on track
Onboarding and training Business practices Strategic planning Revenue support
Facilitating effective onboarding and regional
transitions, maintaining business scenario bas
ed training documents, offering continuing edu
cation through ongoing programming and provi
ding cross-training opportunities and individual
coaching to underperforming team members
Contributing ideas on how to improve
revenue management processes by
benchmarking against industry best
practices and changes in the commerc
ial operating environment. Communica
ting regularly with operations and key
stakeholders to ensure revenue mana
gement strategies are maintained thro
ughout the organization, and aligning
current processes to best practices.
Identifying revenue generating
opportunities, working closely
with revenue management an
alysts and sales to improve t
he allocation of their inventory,
assist in carrying out analyses
and exploringopportunities and
set KPIs and Performanc
e measurements
Ensuring effective and reliable generation of reg
ular reports, offering incremental substantive
reporting to encourage innovation in the revenue
management department, monitoring divisional
performance and addressing concerns through
managers and supervisors, working with IT to de
velop decision support tools and providing or
assisting in producing ad-hoc reports. This
includes performance management, weekly mee
tings with international, domestic and regional te
ams to review budgets and performance and de
cide strategy together to help teams get as close
to their budgets as possible.

9. What is yield
management?
Yield management can be defined as, selling a product or
service at the:
Right rate to
The right customer at the
The right time
And the Right Channel.
In simple words, ‘the process of determining right hotel room
pricing is called yield management strategy.

10. What are the benefits of yield
management in
hotel industry?
1. Increased revenue:
Yield management in hotel industry helps you to make the most of your occupancy.
It ensures a higher revenue, even if your occupancy is not 100%. (Regardless of the
peak or weak season.) A solid yield management strategy can increase your
revenue significantly.

11. What are the benefits of yield
management in
hotel industry?
2. Decreased errors
With yield management strategies, there’s no chance of making mistakes while
setting the price of the rooms. The accurate demand forecasting eliminates any
miscalculated risks.

12. What Are Online Travel Agencies?
An online travel agency (OTA) arranges and sells accommodations, tours,
transportation and trips on an online platform for travelers. They are third parties
who sell services on behalf of other companies.
Usually, these OTAs offer many benefits with added convenience with more of a s
elf-service approach. They also include a built-in booking system which allows inst
ant bookings.

13. What Are the Advantages and Disadvantages
of Selling Through Online Travel Agents?
Advantages Of Online Travel Agents
• Low-cost method of selling accommodation services
• Reduced online marketing spend as OTAs invest in advertising to attract potent
ial customers
• Impartial reviews give customers the confidence to book
• Users can easily compare various accommodation costs at one place
Disadvantages Of Online Travel Agents
• Commission rates are charged on every sale. It can range between 10-15% of
the gross cost
• Restrictive cancellation terms
• Even if accommodation businesses use OTAs, the need for their own website
and booking engine does not go away
• Investment in a balanced multi-channel strategy may be needed to boost sales

14. Who are the key players?
Booking.com merupakan
online travel agent favorit
pelancong karena tiga alas
an utama. Pertama, situs
ini mencantumkan lebih
dari 29 juta pilihan
akomodasi mulai dari
hostel, hotel dan resort
mewah.
menggunakan mesin meta
search yang bisa
membandingkan harga dari
semua online travel agent
untuk penerbangan, hotel
dan penyewaan mobil.
merupakan online travel agent
dari Amerika Serikat. Keunggu- l
annya, Expedia bisa menghubu-
ngkan ke beberapa merek online
travel agent lainnya seperti 200
situs pemesanan perjalanan di 7
5 negara, 500 maskapai pener-
bangan dan 350.000 hotel
dipercaya pelancong
karena ada banyak
ulasan dari pelancon
g lainnya juga. Di
situs ini.
merupakan online travel
agent terfavorit di Asia. Ber
kantor pusat di Singapura,
Agoda memang tidak memili
ki banyak opsi filter seperti
online travel agent lainnya.

16. QUIZ
Question : What are the benefits of yield management in
hotel industry?
Please answer the questions above and email to:
dinoleonandri@stptrisakti.ac.id
by email no later than 1 week ahead.
In the email subject, write the name of the campus, course and class
example :
1. Poltekpar Plb/DIK 6A/Hospitality Business
2. STPT/Class A/Revenue Management
3. Poltek Intl Jkt/AJ/Hotel Management
Thank you

17. Thank you