Paul�s Motor Inn and Laurel Point Inn Pull
Away from the Pack
with 75% Profitability on Boosted Revenue
|
Calgary, Alberta, Canada � September 14, 2004 � In a move that gives
operators a proven systematic way to reach higher profitability and increase
the value of their hotels, VIP Investment Corporation today announced an
exclusive strategic partnership with Seattle-based Buckhiester Management
USA, Inc., a revenue management industry leader. The first-of-its-kind
accord combines VIP�s channel distribution and sales leadership with Buckhiester�s
structured REVolution� business process and revenue management toolkit
in one turnkey solution for significantly increasing revenues. Participating
VIP clients will have access to Buckhiester�s REVolution� combined with
VIP�s ongoing channel management and professional sales support.
�By partnering with Buckhiester Management we are offering, under one
umbrella, a proven way to optimize profitable revenue for our clients and
manage all of the channels that deliver it,� said Kelly Blake, president
of VIP International. �Profitable revenue is the crucial slice of
incremental income above fixed costs that most hotels are now leaving on
the table. It�s the difference between an asset that grows in value
for its owners, and one that does not break even. Buckhiester Management�s
unique business mapping process excels in calculating that incremental
revenue potential for hotels and increasing it.�
Bonnie Buckhiester, president of Buckhiester Management USA Inc., said,
�The practice of revenue management is a distinct discipline in our industry.
We have simplified it by giving operators the tools to optimize each link
in the chain of events that creates revenue. With our proprietary
business process REVolution�, operators are able to identify the gaps in
their revenue management strategy, establish benchmarks for superior levels
of rate maximization, and then teach the discipline to others in their
organization. VIP has a genuine passion for revenue management which
makes them a perfect match with Buckhiester.�
REVolution� Tools from Buckhiester
Effective immediately, VIP will offer its clients Buckhiester Management�s
one-of-a-kind REVolution� toolkit, which is a proven methodology that includes
workshops, practical application decision support tools, follow-up and
coaching to train hotel operators in revenue management. The REVolution�
process focuses on:
-
Product Definition � Understanding what kind of hotel you are, what market
you want to attract and if you are aligned with your customers� needs;
-
Competitive Benchmarking � Establishing competitive-set comparisons that
guide price setting to gain maximum revenue for each market;
-
Strategic Pricing � Refining rates to optimize all of a hotel�s distribution
channels;
-
Business Mix Manipulation � Matching segmentation strategies with the new
ways different consumers buy rooms, and optimizing each property�s segment
blend;
-
Demand Forecasting � Developing rate management and stay controls based
on historical demand, current market forces and future trend information;
-
Distribution Management � taking distribution beyond channel management
to optimize every manner in which the product is sold.
Paul�s Motor Inn, Laurel Point Inn Overall Revenue Rockets $550K on
75% Profitability
| Laurel Point Inn in Victoria, British
Columbia, first partnered with VIP International in 1991 for GDS connectivity
and was joined by its sister property, Paul�s Motor Inn, in 2001 when Buckhiester
Management was brought in to train Laurel Point�s managers. VIP�s
initial role was to manage the vast range of Internet channels and simplify
how they communicated inventory and rates. Avril Matthews, revenue
manager for both properties, explained, �We used to send dozens of faxes
every day notifying the large number of Internet companies selling our
rooms about rate and inventory |
Laurel Point Inn
680 Montreal St
Victoria, British Columbia
|
adjustments. The first thing VIP did was provide access to the GDSs.
In 2001, we began using their technology to consolidate communications
and update all electronic channels with one access point. This saved
us a great deal of time and made our online offering more accurate.
It was a big step, and allowed us to instantly maximize our rates and availability
across all four seasons. When I input a season now I set parameters
based on our corporate rates for each individual market to keep revenue
up. After our Laurel Point Inn training we decided to run both properties�
reservations departments out of the same office so that we could apply
our new understanding of revenue management to Paul�s Motor Inn.�
Paul�s Motor Inn saw its Internet reservation segment jump 47 percent in
2002 year-over-year.
The two sister properties have been using the combined services of VIP
and Buckhiester Management for three years with stellar results.
Avril Matthews continued, �We started using Buckhiester�s REVolution� toolkit
alongside VIP�s channel management in 2001. Although the two companies
were not partnered then, after one year of working with both companies
we showed an increase of $550,000 in revenue over the previous year, in
spite of a plunging economy. The following year we increased another
$500,000 year-over-year; but the best part is our profitability on the
increased revenue was 75 percent. We continue to perform very well
compared to our market.�
Matthews explained that the unique Buckhiester process is customized
for every property owner and that, before their REVolution� training began,
Laurel Point Inn�s entire rooms division management team was interviewed.
�We were asked where we are now, where want to be and what our goals are,�
Matthews continued. �They showed us key markets we had not considered and
we learned how to price each market separately plus optimize our segment
participation. Discovering �micro markets� was important to us because
our transient segment, for example, is composed of government, seniors,
AAA, and negotiated corporate rates, each with different revenue potential.
Understanding our strategic pricing was the turning point; for us it was
huge.� Laurel Point�s team was coached in how each micro market has
different stay patterns and how accurate demand forecasting can help protect
availability for higher rated segments to maximize revenue and occupancy.
�Buckhiester�s training was a logical step-by-step process over a period
of months. They taught us how to spot individual markets and how
to participate in them across all our seasons. Buckhiester educated
our managers in a comprehensive process that optimized the tools we already
had, like VIP�s channel management and reservation technology.�
New VIP Division: Revenue Management Professional Services
| VIP President Kelly Blake said a
new Revenue Management Professional Services (RMPS) division will eventually
be formed within VIP to provide the benefits of the strategic partnership
with Buckhiester Management to its clients, giving VIP four specialized
divisions: CARS, hotel, airlines, and RMPS. Blake underlined his
message to operators, �If you are not profitable, you definitely need the
Buckhiester Management tools we are offering. If you are profitable, you
need to ensure these skills are finely honed to stay ahead of your competitive
set.� |
Kelly Blake |
About VIP
VIP Investment Corporation (www.vipintcorp.com)
is a channel marketing organization that drives revenue for hoteliers,
car rental owners and regional airlines through a multi-channel reservation
sales center, the adoption of leading-edge technology, and  partnerships
with clients to provide ongoing education. Founded in 1979, the privately
held Calgary, Alberta-based firm has a mission of optimizing profitable
revenue for clients. This is accomplished through mastering the electronic
channel marketing environment, developing and implementing strategies for
each client's unique position and educating customers about how to optimize
participation in the changing electronic marketplace. VIP, the industry's
second largest provider of reservation sales services to hotels, car rental
companies and airlines, serves more than 5,000 clients worldwide.
A sister subsidiary of VIP acquired Lexington Services in November of 2003.
The combined companies are a central distribution point to every viable
Internet Web booking site, and to all of the major global distribution
systems including Sabre, Galileo, Pegasus, WorldRes, Amadeus, and Worldspan.
VIP is headquartered in Calgary, Canada with a USA headquarters in Dallas,
Texas and significant development office presence in Denver, Colorado,
London, United Kingdom, Hong Kong and other cities located around the world.
About Buckhiester Management USA Inc.
Buckhiester Management USA Inc. is an industry leader in Revenue Management
education, training and practical application tools. Using a unique
and structured business process approach, Buckhiester USA enables hotels
to develop Revenue Management as a core competency. Buckhiester USA
deploys a proprietary diagnostic process called REVRoadMap�. This
business mapping process calculates a hotel�s incremental revenue potential
by examining the six key Revenue Management components. From this
diagnosis, Buckhiester USA develops customized learning programs using
its one-of-a-kind product REVolution�, an effective, affordable combination
of revenue management tools, training and process. Clients include
Fairmont Hotels & Resorts, Westin Grand, Marriott Residence Inns, Pan
Pacific Hotels & Resorts, Intrawest Resort Group, Radisson Hotels International,
Coast Hotels & Resorts, Joie de Vivre Hospitality and Tourism Vancouver.
Buckhiester has also been chosen by HSMAI to provide all Revenue Management
content to their association. Founded in 1995, Buckhiester has offices
in both the U.S. and Canada. |