Weekly Insights. June 8, 2024

Weekly Insights. June 8, 2024

Best hospitality industry articles focused on 💵revenue, 📊markets, and 🎯strategy (Jun 2 - Jun 8, 2024).

Alex Kapichin

Occupancy vs ADR, the never ending discussion in revenue management

Since the early days revenue management has been applied in hotels, there has been an intriguing ongoing discussion. What drives more value to the business, ADR, average daily rate, or occupancy?

I have been in hotel revenue management consulting since 2006, and it is a question that keeps coming back. ‘How can I make more profit with my hotel?’ Owners that are closely watching the P&L statement are especially keen to understand how they can drive the bottom line of their hospitality business.

Last year, we explored eight dynamic hospitality trends shaping our industry. What’s changed since then? Are these trends still relevant, or have they faded into obscurity? We revisited our insights to evaluate their current status.

Endless choices for guests to find the perfect hotel stay

Imagine this: You're planning a weekend getaway and decide to browse hotel options in a popular destination. As you scroll through the choices, hotels bombard you with many packages – a romantic getaway for couples, a family fun package, a pet-friendly offer, a senior discount, a golf retreat, and so on. Before you know it, you're overwhelmed, struggling to decide which package, if any, fits your needs.

Despite the many packages and offers, hotels often miss the mark because they don't truly understand what their guests want. This scattergun approach aims to convert lookers into bookers by the sheer volume of options. However, more choices don't necessarily lead to better decisions or increased satisfaction. Instead, they often result in decision fatigue and missed opportunities for genuine guest connection.

The importance of an integrated booking engine in a hotel’s direct booking strategy

A modern, integrated booking engine is a fundamental part of a hotel’s direct booking strategy. In this article, we explore nine ways a booking engine can help hotels drive more reservations and the benefits of doing so, such as control over the brand narrative, personalization of the guest journey, and increased revenue. 

When evaluating travel and hospitality Artificial Intelligence (AI) solutions, look to the mousetrap

The explosion of new AI capabilities is grabbing headlines, but in a business context, data quality will be the limiting factor in value creation.

The essential guide to revenue management for hotel owners/operators, hotel managers and front desk managers

When you think of revenue management, which is the first department that comes to mind?

If you’re like most in the hotel industry, you will associate revenue management only with revenue managers and the revenue management team; however, the reality is a very different story: revenue management is actually very important (and has different, but equally important benefits) for leadership across all departments, including hotel owners/operators, hotel managers/General Managers and, even, the front desk manager.

Ignorance means risks: What revenue management means for today’s hotels and the costs of neglecting it

A quick search on the internet yields a wide range of definitions for ‘revenue management’. Some of these take a theoretical, almost academic approach and, in several instances, there are iterations of revenue management’s classic definition: ‘selling the right room, to the right guest, at the right time, for the right price’. 

Yet, it’s important to consider that the demands of revenue management have drastically changed. With rising costs, evolving guest behaviours and the varying types of accommodation businesses that have emerged, revenue management now means different things to different properties.  

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