The focus of hotel asset management has traditionally been on cost control. Reducing the operational or flexible costs on the hotel balance sheet is what used to determine the profitability of a hotel. Over the last few years, focus has shifted !
I kid you not, there are still people convinced that revenue management is not applicable to resort hotels and belongs in city markets only. Last week I was blown away when a ‘senior contract manager’ of an important UK based OTA claimed rate yielding is not for resort hotels.
No time to lose, 2012 is almost here. And a good plan isn’t made overnight. How far are you with your targets, budget and plan of attack for next year? What REVPAR and GOPPAR do you need to achive? Is your hotel marketing plan complete, and does it describe all actions in detail? Does everyone on the team know what the objectives are and which steps to take to get there?
The 3rd quarter of 2011 continues to show growth for independent hotels across Europe. The Xotels hotel management company portfolio has shown another 15,3% REVPAR increase, putting us YTD at 15,8% REVPAR growth ….
Last month we discussed the apparent need for hotels to implement a Revenue Management strategy for their spa in order to maximize the profitability of their business. So let’s now take a closer look, and define the Key Performance Indicators that need to be measured.