Welcome to your future HSMAI Washington DC Chapter Program By the Institute for Hospitality & Tourism Education & Research & HSMAI
W e l c o m e t o y o u r f u t u r e
HSMAI Washington DC Chapter ProgramBy the Institute for Hospitality & Tourism Education & Research & HSMAI
W e l c o m e t o y o u r f u t u r e
Opening Presenters
Karen Wollard, Ed. D.,Associate Director, Professional & Continuing Education,
The Institute (IHTER) at the Chaplin School of Hospitality
and Tourism Management
Fran BrasseuxExecutive Vice President, HSMAI
Executive Director, HSMAI Foundation
W e l c o m e t o y o u r f u t u r e
Total United States*Key Performance Indicator Outlook
(% Change vs. Prior Year)
2015 - 2016
Outlook
2015
Forecast
2016
Forecast
Supply 1.3% 1.4%
Demand 2.6% 2.2%
Occupancy 1.4% 0.8%
ADR 5.2% 5.0%
RevPAR 6.6% 5.8%
*STR
W e l c o m e t o y o u r f u t u r e
Total United States*Chain Scale Key Performance Indicator Outlook
2015F by Chain Scale
2015 Year End Outlook
Chain ScaleOccupancy
(% chg)
ADR
(% chg)
RevPAR
(% chg)
Luxury 0.5% 5.5% 6.1%
Upper Upscale 1.1% 5.0% 6.2%
Upscale 0.6% 5.4% 6.0%
Upper Midscale 1.9% 5.1% 7.1%
Midscale 1.8% 4.2% 6.1%
Economy 1.8% 5.2% 7.1%
Independent 1.0% 5.1% 6.1%
Total United States 1.4% 5.2% 6.6% *STR
W e l c o m e t o y o u r f u t u r e
Total United States*Chain Scale Key Performance Indicator Outlook
2016F by Chain Scale
2016 Year End Outlook
Chain ScaleOccupancy
(% chg)
ADR
(% chg)
RevPAR
(% chg)
Luxury 0.4% 5.2% 5.7%
Upper Upscale 0.5% 5.6% 6.1%
Upscale 0.6% 5.1% 5.7%
Upper
Midscale 0.6% 4.3% 4.9%
Midscale 0.9% 4.1% 5.1%
Economy 1.0% 4.2% 5.2%
Independent 0.7% 4.4% 5.1%
Total United
States0.8% 5.0% 5.8% *STR
W e l c o m e t o y o u r f u t u r e
2015 Year End RevPAR Forecast*Top 25 US Markets, May 2015 Forecast (Markets sorted alphabetically)
-5% to 0% 0% to 5% 5% to 10% 10% to 15%
New York Houston Anaheim Denver
Norfolk Atlanta Phoenix
Oahu Boston Tampa
Philadelphia Chicago
Dallas
Detroit
Los Angeles
Miami
Minneapolis
Nashville
New Orleans
Orlando
San Diego
San Francisco
Seattle
St. Louis
Washington
*STR
W e l c o m e t o y o u r f u t u r e
The New World
W e l c o m e t o y o u r f u t u r e
How has the world changed?
Traditional fences of:
• Geography
• Segmentation
• Language
• Channels
• Even knowledge…
…have become irrelevant.
Things have changed!
IHG – The World Changes
W e l c o m e t o y o u r f u t u r e
IHG - Implications and outcomes
• Homogenized products/price? Commoditization?
• Business models will begin to merge
• Intermediaries that do not adapt will struggle
• Sales, Revenue Management & Distribution must change
For the client, bespoke products and services will
increasingly become more important for an “In the Know”
experience that differentiates.
Partnerships must become deeper and communications
must increase.
W e l c o m e t o y o u r f u t u r e
1. Nurturing the Revenue Management Triangle – Revenue
Manager, Director of Sales and GM – the need to put time into
that critical team
2. Finding and keeping talent – it’s an employee’s market
with growth of new properties in many markets
3. Inaccessibility of customer – the sales process has become limited
with automation of leads
4. Need for speed – the hotel that is quickest and most
efficient with leads wins
5. Brand proliferation is confusing the consumer
Top 10 Challenges Facing
Hotels
W e l c o m e t o y o u r f u t u r e
Top 10 Challenges
Facing Hotels
6. Need to keep people focused on revenue and keep them
selling - with all of the other noise going on
7. Rising distribution costs and how to manage different
systems used by different brands
8. Group business is growing, but booking window is
shorter
9 Customer Ownership - Who owns customer data
today? - The hotel or the brand?
10. Hotels have to own the customer experience
W e l c o m e t o y o u r f u t u r e
Top 10 Issues in Hotel RM
� Published rates
� Guest mix
� Overbooking
� Low occupancy
� Selling out in advance
� The brand image
� Evolving technology
� Middle men
� Ancillary revenue
� Profit
W e l c o m e t o y o u r f u t u r e
Need for ConvergenceChanging Roles of Sales & Revenue
� Working as a team to achieve goals
� Both disciplines needs to be aligned and have strong communication
� Focus on same end goal
� Define optimal mix
� Use data driven information to determine appropriate sales driven efforts
� Evaluate
13
GM
DOS DORM
W e l c o m e t o y o u r f u t u r e14
Segmentation Mix: Scenario 1
PCT ADR Gross
Revenue
Booking
Fee
Net
ADR
Cost Net
Revenue
VAR
Group 10 $140 $42,000 $140 $0 $42,000
FIT 10 $100 $30,000 $100 $0 $30,000
Corp
Neg
20 $185 $111,000 $9.00 $176 $180 $110,820
OTA 40 $210 $252,000 $52.50 $158 $2,100 $189,000
Leisure 20 $210 $126,000 $3.00 $207 $60 $125,940
TOTAL100 $187 $561,000 $166 $497,760
W e l c o m e t o y o u r f u t u r e15
PCT ADR Gross
Revenue
Booking
Fee
Net
ADR
Cost Net
Revenue
VAR
Group 15 $140 $63,000 $140 $0 $63,000
FIT 10 $100 $30,000 $100 $0 $30,000
Corp
Neg
30 $185 $166,500 $9.00 $176 $180 $166,230
OTA 20 $210 $126,000 $52.50 $158 $2,100 $94,500
Leisure 25 $210 $157,500 $3.00 $207 $60 $157,425
TOTAL 100 $181 $543,000 $170 $511,155 +$13,395
<$6.00
>
<$18,000> +$4.00 +$13,395
Variance from Scenario 1
Segmentation Mix: Scenario 2
W e l c o m e t o y o u r f u t u r e
Key Takeaways
o Make sure revenue management & sales are aligned
in “voice” and goals
o Ensure organizational set up is optimal & goals are
clearly defined
o Identify true costs of acquisition
o Don’t try to do more than what is realistic! Build the
Foundation of the Future
o Put your team through HSMAI and FIU’s RO2Win!
W e l c o m e t o y o u r f u t u r e
The Program
W e l c o m e t o y o u r f u t u r e
Concepts• Room Night to RevPAR
• Guests, Rates/Prices,
Channels, Hotel
Segments
• Costs of Doing Business
• Forecast, Pace, Supply
& Demand, Price
Elasticity, Channel
Management, Profits
• Price Positioning – BAR,
LOS, CTA, Dynamic &
Static Pricing, Fences
• Displacement Analysis
• Upselling
• Reputation Management