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Red Roof Inns Implements
High - Tech Revenue Management System

COLUMBUS, Ohio – June 2, 1998 - Red Roof Inns, Inc. (NYSE:RRI) announced the chain-wide implementation of a state-of-the-art revenue management system called TEMPO. TEMPO is a fully integrated system created by Talus, formerly DFI-Aeronomics, which works with both the individual properties and the central reservations centers to increase revenues by using real time inventory controls. Similar to the revenue management systems used by the airlines, TEMPO analyzes current and historical occupancy levels of an Inn when a reservation is requested and forecasts demand for a given room on a given day. It then provides data to the Inn manager on how to best sell that room in order to maximize reservations and revenues. TEMPO makes recommendations on lengths of stay and overbooking opportunities. Intelligent forecasting of occupancy, average daily room rate and revenue per available room is also available.

“Rooms are perishable items. TEMPO allows us to sell the right room to the right guest at the right price,” said Larry Daniel, vice president of reservations at Red Roof Inns. “We expect this system to enhance Red Roof revenues from increased occupancy. Since implementing TEMPO, the Red Roof Inn in Albany, N.Y., has seen an average increase of 1.6 percent in weekly revenues, while the Enfield, Conn., Inn has experienced an average increase of 3.8 percent in weekly revenues and the average sale of 18 additional rooms a week,” said Daniel.
Bob Phillips, president and chief executive officer of Talus stated, “TEMPO will enable Red Roof Inns to better serve their guests by helping them maximize room availability. They are the only hotel company using this unique level of forecasting. Red Roof Inns’ general managers can consider themselves on the leading edge of this technology, particularly in this hotel segment.”

Talus, with offices in Mountain View, Calif., Atlanta, Ga., and London, is the world leader in helping companies worldwide develop advanced revenue management systems. Talus’s revenue management clients include industry leaders in the airline, hotel, travel and leisure, freight, and broadcasting segments.

Red Roof Inns, Inc. is one of the leading economy lodging chains in the United States. With more than 265 properties and over 30,000 rooms in 36 states and the District of Columbia, Red Roof Inns offers business and leisure travelers exceptional value in price, quality and convenience.  Red Roof Inns has one of the highest system-wide occupancy rates in the industry, and is expanding its operations through franchising, strategic partnerships and developing company-owned inns in unique, high-visibility areas.


Mari Jazyk
 Red Roof Inns
Marc Cohen
404-763-5454 x418

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