HSMAI Revenue Management Strategy Wrap Up
|MCLEAN, VA (July 8, 2004) – The Hospitality Sales & Marketing Association
International (HSMAI) and a group of 92 hospitality revenue management
professionals met recently for a one-day conference which resulted in attendees
suggesting that HSMAI take the lead on building relationships between hotel
owners and revenue managers, building communications links between senior
management and revenue managers, and providing a broader focus on education
and networking opportunities for this vital segment of the hotel industry.
The group also recognized channel management as a complex key to success for hotels and that despite the fact of reports of higher occupancies and ADR’s, the continued success of the hotel industry was dependent on reaching today’s highly knowledgeable consumer.
The first keynote address, titled “The Consumer Understands Our Business Better Than Ever…And That’s BAD News!” was delivered by Scott Anderson, President, High Country Hospitality. Anderson educated participants about the distribution of travel products via third party Web sites such as Hotels.com, Expedia and Travelocity and provided suggestions for hotel companies to improve their market share via the use of Internet technology. Anderson spoke of the importance of understanding channel management and building relationships with partners so that hotel companies can convert customers found via the Internet into loyal brand customers.
Brian Ferguson, vice president, marketing, Smith Travel Research provided the second keynote address called “What’s Happening with Occupancies and ADR’s?” During his presentation, Ferguson indicated that the hotel industry is rebounding to levels seen in 2000 and earlier. The projected average daily rate for 2004 is $85.11 which is just off the highest average of $85.37 which was realized in 2000. Hotel occupancy levels are also on the rise, up from 59.2 percent in 2003 to a projected 60.8 percent for 2004. The highest occupancy level was in 1998 which peaked at 63.4 percent. The projected RevPar percent change for the United States in 2004 is 5.2 percent which is up from 0.6 in 2003 and close to the 6.1 percent gain in 2000. In 2004, it is projected that demand (up 4 percent) for hotel rooms will outpace the supply (up 1.2 percent) of available rooms.
Conference attendees participated in an “Ideas Fair” which consisted of four 25-minute breakout sessions that addressed the top four issues facing the industry. Each breakout session moderator reported back to the general session on the ideas that were generated for each topic. A recap of each session follows:
Helping Owners & Franchisees Understand Revenue Management:
It was suggested that HSMAI can help improve the relationship between owners and revenue managers by creating more direct communication to owner organizations including education pieces designed specifically with owners in mind. Also, HSMAI can provide an independent third party review which allows for the sharing of data and specific marketing trends.
Leveraging the Revenue Management Role in the Organization:
HSMAI can help revenue managers leverage their role in their organization by communicating to senior-level decision makers about the roles and functions of the revenue managers which will help validate the mangers. The creation of the HSMAI Revenue Management Committee also serves to validate the role of the revenue managers.
Role of the HSMAI Revenue Management Committee:
Designed for revenue and yield management professionals, the conference addressed critical issues and offered viable solutions and strategies for this very specific industry segment. Organized by HSMAI’s new Revenue Management Advisory Board, the conference took place at the Dallas Convention Center in conjunction with the HITEC 2004 conference.
The conference was sponsored by Revenue Management Supporters & Conference Partners: Expedia, Hotwire, Sceptre and Conference Partners: Eye For Travel, Maxim Revenue Management Solutions, IDeaS and VIP International. Companies interested in sponsorship opportunities can contact HSMAI Director of Development Marjorie Lane at email@example.com.
The Revenue Management Advisory Committee and Board is a group of HSMAI members who advance the revenue management discipline through education, participation, resources, and guidance, enabling leaders to optimize revenue and performance within their own organizations. The group’s strategic intentions are to: provide education on all levels; develop a sense of community and participation; create tangible resources for revenue management professionals; and give guidance on industry standards and practices.
|Also See:||Franchisees on the De-flagging Fence: A Gamble Or A Golden Goose? Former Franchisees Talk Specifics About Channel Loyalty and How They Leverage VIP International Channel Marketing to Succeed as Independents / March 2004|
|2004 the Year of Direct Online Distribution; Now is the Time to Fight Back with a Smart Direct-to-Consumer Internet Strategy / Max Starkov & Jason Price / February 2004|
|Hotelier’s 2004 Top Ten Internet Strategy Resolutions / Max Starkov & Jason Price / January 2004|
|Top Ten Revenue Management Mistakes Hotels Can Make / Dr. Gabor Forgacs / June 2004|