Cornell Study Examines Emerging Trends in Hotel Revenue Management
January 19, 2017 1:30pm
Ithaca, NY, January 19, 2017 - Revenue management professionals suggest that total hotel RM is the wave of the future and that, going forward, technology and data analytics will help enhance RM decisions in the hospitality industry. These are among the findings in a new study from the Cornell Center for Hospitality Research (CHR) based on surveys designed to determine how hotel RM practices have evolved over the past six years and where they are headed.
Survey participants noted that the application of hotel RM has become more strategic, and more centralized, but that change in these areas has been slower than expected. Likewise, the use of mobile technology and social media as distribution channels for the industry remains a work in progress, poll respondents said.
Some 400 hotel RM officers participated in the research, which represents an update of a similar report on emerging trends in RM conducted by the author in 2010. A full description of the study, “The Future of Hotel Revenue Management,” by Sheryl E. Kimes, is available from the CHR. Kimes is a professor of operations management in the Cornell School of Hotel Administration.
Survey respondents indicated that it is now more common for RM to be a stand-alone department than it was in 2010, integrated with marketing efforts. “This has been a big change in the last five years,” one participant said. “In some organizations, RM is increasingly a sub-department under a larger umbrella called ‘commercial department’ which houses sales, brand, marketing, e-commerce, and revenue as it is recognized that all of these sub-departments don't work in silos.”
Other projections include a belief that pricing will be affected by advances in data analytics and that gross operating profit, or a similar profit-centric measure, will replace RevPAR as the performance metric of the future. In addition, a significant percentage of survey respondents think that performance will be measured per available square foot, rather than per available room.
When asked to evaluate which non-rooms areas RM would be applied to in the next five years, respondents identified function space as the most likely, followed by restaurants and spas.
Tags: cornell center for hospitality research,
school of hotel administration,
cornell school of hotel administration
The purpose of the Center for Hospitality Research is to enable and conduct research of significance to the global hospitality and related service industries. CHR also works to improve the connections between academe and industry, continuing the School of Hotel Administration's long-standing tradition of service to the hospitality industry. Founded in 1992, CHR remains the industry's foremost creator and distributor of timely research, all of which is posted at no charge for all to use. In addition to its industry advisory board, CHR convenes several industry roundtables each year for the purpose of identifying new issues affecting the hospitality industry.
Contact: Carol Zhe
Cornell Presents the 2017 Center for Hospitality Research Sustainability Roundtable Summary
Top 5 Takeaways from Cornell's Master of Management in Hospitality Leadership Development Program
Cornell CHR Report Asks: "Do Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The Answer Is Yes”
Steve Wynn Named 2017 Cornell Icon of the Industry
Cornell Research on Hotel Brand Standards: How to Pick the Right Amenities for Your Property
What to Expect in 2017: A View from the CHR Advisory Board
Cornell Study on Labor Law: When Rules Are Made to Be Broken: The Case of Sexual Harassment Law
Cheryl Boyer to Serve as 2017 Cornell Hotel Society President
Cornell Study Highlights Diversification Benefits of REIT Stock Investments
Cornell Study Examines How Bias Affects Hiring Practices
Hotel Investment Climate Remains Favorable Despite Interest Rate Increases, Cornell Study Suggests
Roundtable Focuses on High-Tech Adoption in Hospitality Industry
Hospitality Money Managers Should Avoid Short-term Trading According to New Cornell Study
Cornell Tool Allows Restaurants to Evaluate Early Bird & Night Owl Menu Specials Effectiveness
Cornell Study Puts Retaliation Claims in a Class by Themselves
Likely Boost for Hotel Profits According to Cornell Analysis
Improved Hotel Sustainability Benchmarks Outlined by Cornell Study
Building a Smart Distribution Strategy
Changing Relationship of Supervisors and Employees Revealed in Cornell Study
Changing Regulations Dominate Cornell Human Resources Roundtable
Please login or register to post a comment.