Weekly Insights. June 22, 2024

Weekly Insights. June 22, 2024

Best hospitality industry articles focused on 💵revenue, 📊markets, and 🎯strategy (Jun 16 - Jun 22, 2024).

Alex Kapichin

How can hotels use micro-segmentation to its full potential? 

How cognitive biases impact hotel revenue management

Managing hotel revenue is key to business success and profitability. However, cognitive biases can lead to less-than-ideal decisions. Understanding these biases and their effects on revenue strategies is crucial for hotel managers who want to maximize their revenue. This article looks at the different cognitive biases that can affect revenue managers and offers tips on how to reduce their impact.

All the tricks to increase your bonus as a hotel revenue manager

RevPAR and RGI are not just numbers on a spreadsheet; they play a pivotal role in determining the compensation of revenue managers, the professionals responsible for maximizing a hotel's profitability. Bonuses and incentives for revenue managers are often directly tied to achieving or exceeding RevPAR and RGI targets. However, in recent years, there's been a growing concern regarding the accuracy and transparency of RevPAR reporting. As the pressure to boost RevPAR intensifies, so does the temptation to manipulate the numbers. This practice, known as "gaming" RevPAR, involves using various tactics to artificially inflate the metric, creating a misleading impression of a hotel's financial health.While these tactics might lead to short-term gains and fatter bonuses, the long-term consequences can be severe. Misleading RevPAR figures can deceive hotel owners and investors, leading to poor decision-making and potential financial losses.

A three-course recipe for success: The KPIs of event space revenue management

The rapidly evolving and expanding discipline of commercial strategy in the hospitality industry is rife with opportunities to extend to areas beyond simply hotel rooms.  Event and meeting space presents one such opportunity.  As commercial teams take on this effort, it is crucial that they equip themselves with the means to effectively measure and benchmark performance in order to diagnose issues and opportunities, investigate root causes, and further develop and refine strategies.

Peek behind the curtain: How we built AI Smart Summaries, our first generative AI feature

While we recognized that making specific action recommendations is not something Generative AI excels at (yet), we saw immense potential in automating data summarization and kicked off a collaborative project to see what we can do.

The CBRE Global Hotel Asset Management team pinpoints four industry trends that revenue managers should track for a 2024 that garners applause.

Visiting your hotel’s website has become an almost mandatory part of a traveler’s booking process. It can be the deciding factor. 

Taking care of your website is crucial because it’s the first interaction between you and your potential customer. Of course, it’s important to have a fast, efficient, and intuitive website. But it’s just as important to take care of its appearance as well as its technical parameters. 

A modern web design in line with current trends will help you convert travelers into customers and thus increase your volume of direct bookings. Here are 7 design trends that will give your website a boost and make it more attractive to Internet users.

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