Revenue Management for B&B Owners Presented by John Spear Hotel Drisco, San Francisco CABBI InnSpire Conference January 24, 2012.

Revenue Managementfor B&B Owners

Presented by John SpearHotel Drisco, San FranciscoCABBI InnSpire Conference

January 24, 2012

Caveat Emptor

• I’m not as funny as Vikram from the Google Analytics session.

• I don’t use any Star Trek references in my presentation.• I’m not trying to raise your blood pressure on purpose,

but if you fear numbers be warned.• Anonymous request for “the kindergarten version.”

Who are we today?

How many rooms in your Inn?How often do you change your room rates?How do you determine your room rates?

Do you practice rate parity?How do you discount?

Understand Your Product: SWOT

• Strengths• Weaknesses• Opportunities• Threats

SWOT for Hotel DriscoStrengths: Upscale location, historic and well-

maintained facility, superb service philosophy and execution, upscale amenities, constant capital infusion, #1-2 on TripAdvisor in San Francisco.

Weaknesses: Remote location, 20% “last sell” inventory, thin walls, no parking structure or lot, no individually-controlled heat, no A/C.

Opportunities: Maintain #1 on TripAdvisor, soundproof rooms, install individual HVAC.

Threats: Opening of new comp set hotel, earthquake.

Understand Your Competition’s Product: SWOT

• Strengths• Weaknesses• Opportunities• Threats

Price Value Assessment (PVA)

Objective comparison of your product (and the perception of your product) to your competition’s.Perceived value

Analyze Occupancy Data To Determine Demand Drivers

SeasonalityHolidaysFestivals/events

Day of week patternsShop your competitionConference “compression”

What does a rented room cost you (incremental cost of goods sold)?

Labor?Amenities?Laundry?

Wear & tear?Energy?

Mortgage?Other (quality of life?)

Develop Rate Tiers

Make sure that…Make sure that…

Utilize Reservation Channels

PhoneWeb siteTravel Agents

Third-party sites

RATE PARITY!

Rate Strategy Planning Calendar

Blackout datesLOS (length of stay) restrictions

Pricing Matrix

Thank you!

John Spear: [email protected]