2. Introduction & Background:
- Fergal Mc Carthy¦Luke Bourke¦Fergus Cooney
- Early career in hotels – operations - finance…
2000 Caught a bug SaaS
2009 Benchmarking for hotels Ireland
2011 The call from hostels hostelbench
3. Benchmarking…history and evolution
• Xerox believe that they formally invented/introduced
benchmarking in early ‘80’s
• Robert Camp Ph.D.
• Introduced benchmarking to the logistics operation of Xerox in 1981 “..the
continuous process of measuring our products, services and practices
against our competition…” *
• *The Healthcare Forum Journal, January-February 1993, Vol. 36, #1, as "The Source."
4. Benchmarking…history and evolution
• Cobbler’s bench
• “The term benchmarking was first used by cobblers to measure people's
feet for shoes. They would place someone's foot on a "bench" and
mark it out to make the pattern for the shoes” Wikipedia
• Xerox Corporation in the 80’s
• “the continuous process of measuring products, services, and practices
against the toughest competitors or those recognized as industry
leaders.” David Kearne CEO, Xerox Corp.
6. Benchmarking…history and evolution..
• Formally and informally
• Racetrack – “bookies benchmark their odds “against recognised industry
leaders”
• Supermarkets – forever benching price of products
• Automotive industry- benchmark everything from 0-60mph stats to fuel
consumption
• Informal “Ring-around” in hotels : “What are you selling at tonight ..?”
7. Benchmarking in Hotels
ž Hotels – mid 1990’s
• STR Global
– 2008 Acquisition and consolidation of:
– Andersen/Deloitte
– Hotel Industry Benchmark Survey: 1996
– Overlook Hospitality Management of Stockholm
– The Bench – early 2000’s
Small Independent Irish company
Source: http://www.strglobal.com/about/History/STR_Global.aspx
8. Benchmarking in Hotels
ž What happens?
• Occupancy, Rate and RevPAR
– Used on a daily and weekly basis by over 40,000
properties worldwide
• Suite of reports
• Classified by City, Star-rating, CompSet
9. Benchmarking in Hotels
ž Why?
• Formalising the informal
• Reducing resource time allocation
• Consolidating channel search*
• Ryanair & Southwest airline
10. Benchmarking in Hotels
ž Consolidating channel search*
• Findings: over 100 hotels –
– variable non-standard % of room stock
• Attributed to multiple different channels
• Compare like-with-like?
11. Benchmarking in Hotels
ž Common platform
• Weekly Submission with ultimate goal
• “AN INFORMED DECISION!”
12. Benchmarking –the call from
hostels!
O Timeline - call came in 2010 – acted in
Summer 2011
O Research - spoke with industry luminaries
O Conclusion: Potential market worth exploring
13. Hostels
..the
story
so
far
O Beta trial since August/Sept
O Break / fix
O Ready to launch this month – Open for
Business
14. How does it work…
• Weekly Submission:
• You submit your data online - beds sold and
rate(s) - in confidence
• Likewise your competitors confidentially submit
their data
15. How does it work…
• This generates a suite of reports – (demo to follow)
• Region/City - Occupancy, Rate, RevPAB (Rev per
available bed)
• Competitive Set (Compset) – minimum 4 others
aggregated
16. Business Application and benefits.
Fundamental aim
¤ To help you make informed decisions
And / Or
¤ To maximise you bed revenues for any given week
18. Security & Data Integrity
¨ Data integrity
¡ All data is stored in a commercial ISP data center
¡ Is it safe?
ú Data access is protected via a secure hash algorithm
ú Server itself is firewalled
¨ Can I retrieve my data in full if I leave the service?
¡ Yes – for 30days.
¨ Will my data be passed on to third parties?
¡ No. Other than regional reports E.g. Hostel
Occupancy for Dublin Nov 2011 was…
19. Here’s one I made earlier
§ Brief Demo.
§ Sample Id’s available to anyone looking to try this
at home.
20. Back to the future
“In four hours the ship blows up”...James Doohan
• Revenues are only one aspect of
benchmarking
• Cost benchmarking…KPI’s
• Feature kaizen
22. Nollaig Shona daoibh go léir…
…agus go mbeimíd ar ais arís le chéile an bliain seo chugainn
Go raibh maith agat a GoMio don cuireadh.
www. Hostelbench.com