KEYS TO SUCCESS™
John Hogan, CHE CHA CMHS
Management Should Mean Planning and Action at Every Type and Size Hotel (Part
2 of 2)
A Plan for
All Seasons 11.9.11
Maximizing Revenues does not
automatically mean raising prices, but means reacting to the market, to your
competitors to some degree and to the uniqueness of your hotel’s clientele.
Most markets have some kind of seasonal demand. When it is off-season, some
rates naturally tend to drop due to lower demand. A proven practice even in
off-season is to maintain some high rates because rate alone is not the only
driver of business to our hotels. Customers choose hotels partially because of
price, but also because of location, brand preference, previous positive
experience or simply availability.
Maintaining higher rack rates also allows you the option of some discounting
percentages from the higher rates, achieving better REVPAR and operating
results. Part 1 of this 2 part short
series provided tips to maximize
revenues in periods of lower demand or weaker shoulder seasons.
Part 2 of
this series looks at High and Excess
Demand Tactics: (use when
you expect 85% occupancy or higher)
check all corporate and credit card guarantees - be certain to fill all those
Close deep discounts (honoring mandatory
discounts such as AAA and AARP, discount from the rack rate), but recognize a
Manager’s Special at a 20% discount could be a good business decision to fill
those last 5 rooms
minimum length of stay restrictions carefully
- Reduce group allocations if not picked up
according to agreements
- Reduce or completely
eliminate 4 or 6 p.m. holds
stricter guarantee/cancellation policies, i.e. accept only credit card
guaranteed reservations with 24- or 48-hour cancellation requirements
rates to be consistent with your competition
and possibly raise rates for all packages, or limit their availability on certain
suites/executive room types for full price
- Don’t automatically
eliminate sell-through reservations, as a multi-night stay that coincides with
high demand night could net a week long stay.
Look carefully at recent history of no-shows and cancellations
Demand Tactics: (use when demand exceeds availability)
Put in all of the restrictions as
you would for high demand
Be sure you know what is causing
demand, e.g.: a one-day vs. a three-day special event
Apply minimum length of stay
- Use these tactics during forecasted
- Consider weekend stay-overs and
on all Situations
Continually monitor your PMS and CRO
- If you part of a chain or brand ,
work with your Reservations and Revenue Representatives at the CRO - they are
your experts and can greatly assist you with their experience
Ensure appropriate restrictions are consistent
between all channels of distribution (GDS, CRO, PMS, OTA)
- Review and revise strategies
- Communicate strategies to the Front Desk.
Think Tank Question
We provide questions to stimulate discussion about the way we do business.
There is not necessarily only one "correct" answer - the reason for
this section of the column is to promote an awareness of how we might all
improve our operations.
Topic: Maximizing Revenues
1. Does someone with responsibility at your hotel specifically review the next
90 to 180 days at least once a week? If so, do they identify trends and take
steps to maximize revenues? If not, why not?
2. How often is the marketing plan (or sales action plan) reviewed? Who is
charged with this task?
3. When was the last time the topic of "sales" and "maximizing
revenues" was presented to the entire hotel staff? It is the best interest
of everyone to be thinking "sales" and staff often have GREAT ideas,
as they are close to the customers daily.
Hospitality Tip of the Week™:
Focus on Planning AND Action
blame their environment. There is only one person to blame -- and only one
Robert Collier ( 1885 – 1950) author of self help, and New
Thought metaphysical books in the 20th century.
This is especially true in paying
attention to trends in demand and adjusting pricing in hotel revenue
At least 25% of our weekly tips focus on
sales and marketing.
We must remember that we must focus on delivering the right
services to the right customer at the right price, which means attentiveness
to sales and marketing efforts are essential.
Success does not come by accident or
was created to help hospitality businesses address problems via a training and
information resource site to help you increase your Hotel's revenue,
market share and profitability. With more than 950 pages of tips, guides,
best practices, strategies, plans, budgets, videos and resources, HospitalityEducators.com
has become the #1 independent website for
hotel owners and managers. This site can help you solve your
problems now! Read More
KEYS TO SUCCESS™ is the umbrella title for my 201-2012
programs, hospitality services and columns. This year’s writings focus on a
variety of topics for hotel owners, managers and professionals including both my
"HOW TO" articles, HOSPITALITY CONVERSATIONS™,
from the Field™, Hotel Common
Sense™ , THE P-A-R PRINCIPLE™ and Principles for Success.
free to share an idea for a column at firstname.lastname@example.org anytime or contact me regarding consulting,
customized workshops, speaking engagements … And remember – we all need a
regular dose of common sense.
John Hogan, Certified Hospitality Educator
(CHE), Certified Hotel Administrator (CHA),
Certified Master Hotel Supplier (CMHS)
John Hogan is a successful
hospitality executive, educator, author and consultant and is a frequent
keynote speaker and seminar leader at many hospitality industry events. He is
Co-Founder of www.HospitalityEducators.com , which delivers focused and affordable counsel in
solving specific challenges facing hospitality today.
Consulting Expertise and
Development for the Organization and the Individual
Academic Hospitality programs
If you need assistance in
any of these areas or simply an independent review or opinion on a hospitality
challenge, contact me directly for a prompt response and very personalized
www.HospitalityEducators.com is a
membership site offering a wide range of information, forms, best practices and
ideas designed to help individual hoteliers and hospitality businesses improve
their market penetration, deliver service excellence and increase their
Hospitality Resource for the Hotel Owner, Innkeeper, Manager and Hospitality
CONTACT John Hogan, CHE CHA CMHS
United States - Phoenix,
www.hoganhospitality.com / Email: email@example.com