| Morrissey Hospitality’s Famed ‘Heart Felt Service’;
Maestro Yield Management Give Historic Saint Paul Hotel Profitability,
a Renaissance of Glory |
July, 2002 - The northern plains of the great Midwest have always been
home to hearty pioneers who were not afraid to work in a demanding environment.
Over 200 years ago settlers traveling on foot and in wagon trains came
to St. Paul, Minnesota to set trap lines, trade with the Native Americans,
and to build homes and businesses. The times were hard, the challenges
of founding a new community in the wilderness were huge, but the most capable
newcomers were successful and their businesses grew. Times have not
changed all that much.
“Minnesota is in the middle of the recession, but we have the highest
RevPAR in our area, based on our yield in a really challenging environment,”
said Bill Morrissey, president and founder in 1995 of Morrissey Hospitality
Companies, Inc., a Minnesota-based full service management company specializing
in lodging, restaurants and catering. “When things get soft what comes
bubbling to the top are inefficiencies and unprofitable areas like food
and beverage. Being full service, we know how to manage the F&B.
What we looked for – and found - was the right technology to let us unlock
yield management and data mine a customer database that is 15 years rich.”
| Morrissey explained the company chose
the Maestro PMS system from NORTHWIND for basically three reasons:
“It is an enterprise system, not a legacy system, with an open database
that allows us to data mine for marketing information; it refreshes the
numbers real-time as new reservations are entered; and it is user-friendly.”
The company installed its new PMS system at two luxury historic hotels:
The |
Saint Paul Hotel
350 Market Street
Saint Paul, MN
|
254-room, four-star Saint Paul Hotel in March 2002, and at the 61-room
St. James Hotel two months later. It did not take long for the system
to deliver.
Maestro’s Yield Management system helped catapult The Saint Paul Hotel
to number one in RevPAR in its competitive set two months after installation.
“We achieved 72.8 percent occupancy in May,” said Deborah Hermance,
The Saint Paul Hotel’s Director of Guest Services. “According to
Smith Travel Research, our competitive set achieved 69 percent. We
also ran a little more than $5 a day higher in average daily rate and we
did that by setting the individual rate categories to escalate with
occupancy.”
Hermance
noted that, prior to their new PMS system, she and the hotel’s team had
to manually yield manage the 254 room hotel every day of the year, which
meant they had to be in the system four or five times a day to coordinate
separate leisure and group segments. This was an error-prone procedure
that could result in incorrect settings. “Now we are driving rate and occupancy
through yield management instead of reacting to it. In addition to
saving manpower and reducing the margin of error, we can see at a glance
what our business is doing within the different markets we serve.”
Hermance also said, “Before Maestro I would have to verbally communicate
length of stay restrictions and other selling guidelines. Now we have the
option to force the end-user to sell based on the guidelines, or I can
give my staff an override option and allow the override permission by user
group. We can manage demand, percentage guidelines, and cut-off rates
without having to monitor our inventory 24 hours a day.”
Maestro Builds Customized Reports, Last Minute
Packages
“We are a corporate driven hotel and highly segmented in the way we
forecast our demand such as unique groups, contract, leisure, corporate,
and special corporate with our local negotiated rate,” continued Hermance.
“With our previous system we had to blend four or five reports to come
up with the monthly forecast. Now it’s one report, the ‘Forecast
Report.’ NORTHWIND helped us customize one report to compare and
identify trends in the various segments, and the time I save lets me concentrate
more on our guests.” Maestro’s productivity tools also include analysis
components, spreadsheets, word processors, and report writers.
Maestro also integrates with Microsoft Excel and Crystal Reports, making
it easy to create user-configurable reports. “We can build our own
reports now. If I want to identify repeat business trends I can design
a report to my own specifications. It used to be an expensive and
timely process to have a custom report built, and we could not run
simple queries. With Crystal Reports and Excel I can pull information
directly from our database when I need it,” said Hermance, who continued,
“The staff can also build custom packages unique to one individual or,
for hotel-wide special events, on demand.”
You’ve Got Mail!
In addition to the efficiencies, Hermance says hotel staff also has
fun with the system. “We are able to send Maestro Mail back and forth
to get and give information as changes occur throughout the day,” she said.
More than an email engine, Maestro Mail is internal to Maestro users and
is date sensitive to allow reminders for future activities planning.
Tasks can even be assigned to specific staff members and monitored for
completion. Interfaces send messages to appointed staff so that a
clerk can see all internal traces and messages from one place.
“We’re moving to fully integrate our sales and catering and PMS,” Hermance
concluded. “It will allow the sales team to sell live inventory, instead
of working from a separate system restricted by group ceilings. The
Maestro way is a more dynamic, more profitable way to sell.”
In the fall, Morrissey Hospitality will install NORTHWIND’s ResEze
Internet reservation system; the Maestro Sales and Catering system; and
Maestro GDS+, NORTHWIND’s on-line, real-time Global Distribution System
reservation engine in both of its hotels.
About The Saint Paul Hotel and the St. James
Hotel
The 254-room Saint Paul Hotel has been Minnesota’s only Mobil-rated
Four-Star hotel for nearly two decades and was voted number one out of
the city’s top ten luxury hotels. The 61-room St. James Hotel, located
in the charming town of Red Wing, Minn., features antique and restored
furnishings and other features typical of the 19th century. Both hotels
are members of the Historic Hotels of America, an organization of 170 historic
hotels established by The National Trust in 1989.
About Morrissey Hospitality Companies, Inc.
Morrissey Hospitality Companies, Inc. is a St. Paul, Minnesota based
hospitality management and consulting firm that provides market-leading
expertise in new or existing full-service lodging, restaurants, and specialty
catering operations. Its dynamic marketing and brand-building programs
increase sales, establish customer loyalty, and improve the stability and
overall financial health of each business. Morrissey Hospitality creates
wealth for its owners, opportunities for its employees, and consistently
practices Authentic Hospitalitytm. |