So what is exactly is DIDO?

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Lillian Tiffany Haynes
5 years ago
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1 Optimizing DIDO (Data In Data Out) By Orly Ripmaster, CRME, Senior Associate, KSL Capital Partners, and member of HSMAI s Revenue Management Advisory Board Revenue managers in today s hospitality industry are familiar with the term Garbage In, Garbage Out or GIGO. The concept of GIGO can be used appropriately in any department when referencing the importance of keeping information and communication clear, concise and correct. Expanding the concept of GIGO into a term specific to the revenue management discipline originates the concept of DIDO (no, not the singer from the late 90 s) but Data In, Data Out. DIDO, as with most things in the revenue management discipline, and at the risk of sounding clichéd, is both an art and a science. In fact, the ability to master DIDO is often what helps separate revenue management leaders from the pack. So what is exactly is DIDO? It s the ability to synthesize and interpret data supported by the ability to tell a story. Revenue managers must effectively and efficiently convert vast (and in many cases, overly vast) amounts of data they get IN into data they give OUT That s the science. Knowing what information is relevant to which shareholder That s the art. Mastering how to interpret, communicate and influence the data with respect to each unique shareholder s perspective that s a leader. While it would be great to have a universal secret recipe for data interpretation and communication, unfortunately it s all relative. All shareholders are unique in the perspectives with which they interpret hotel performance; the best revenue mangers will observe the specific data needs, wants and expectations of each shareholder and deliver data with an approach that best suits that perspective. For example, good news to some might be bad news to others. Indubitably, it takes time to master who needs what; the critical first step for burgeoning revenue management leaders is to recognize that different perspectives exist and mindfully discern reactions, patterns and data requests so that you can dynamically managing DIDO. Recently, members of HSMAI s Revenue Management Advisory Board took an informal survey giving their opinions about DIDO. The goal of the survey was to get a pulse from industry leaders on the amount of data coming in and the importance of how that data goes back out. Some of the results are highlighted below. How many reports to do revenue managers look on a daily basis? Survey responses ranged from five to 30+ reports with the average being around 10 reports per day. Translation: That s a large dose of daily data! Of that daily data, almost 80% of respondents believe that only up to a quarter of that data can be categorized as Critical. Of that 80% the split was even with 40% believing less than 10% of the data is critical, and 40% believing the proportion lies between 11-25%. If industry leaders believe only up to a quarter of the data is CRITICAL then how much is IMPORTANT?

The most common answer was anywhere between 50-75% of the data coming in is important. Critical to managing DIDO is grasping what s important and what s not.

Responses ranged from <10% all the way up to 75%. However, the majority (almost two-thirds) of respondents believe 11-25% of the daily data revenue managers get IN is irrelevant.

2 The most common answer was anywhere between 50-75% of the data coming in is important. Critical to managing DIDO is grasping what s important and what s not. Interestingly, the largest spread of results occurred when respondents were asked what percent of the daily data digested by revenue managers is irrelevant. Responses ranged from <10% all the way up to 75%. However, the majority (almost two-thirds) of respondents believe 11-25% of the daily data revenue managers get IN is irrelevant. What % of Daily Data is Irrelevant <10% 11-25% 26-50% 51-75% 76-90% >90% Managing the Barrage of Incoming Questions Another critical component of DIDO, and an inherent job hazard, is the barrage of questions that revenue managers get on a daily basis. Whether it s someone popping into the office or just walking down the halls, the best managers of DIDO are always armed with answers. Respondents of the HSMAI Revenue Management Advisory Board survey compiled some questions that, for lack of a better term, are the low hanging fruit answers all revenue managers should have on the tips of their tongues anytime anywhere: How d we do last night? How d the competition do last night? How do we look for tonight? What is our rate tonight? How are we going to end the month to budget? What is our Occ/Rate/RevPAR for this month? What is the Comp Set s Occ/Rate/RevPAR for this month? What s our mix for the next 3 months? When walking the office halls, it s best to have a pulse on performance last night, performance tonight, performance for the month, a sense of the business mix for the month and potentially quarter as well a pulse on the competition. A best practice is to create a dashboard that can be easily updated each morning allowing consistent bullet points in case you get questions. Additionally, adding short answer

solutions or tactics to the dashboard could be the difference between a GOOD answer and a GREAT answer.

Of the respondents from HSMAI s Revenue Management Advisory Board, only one third said the importance of articulating good news is of the highest importance.

Importance of Articulating Good News Importance of Articulating Bad News 4 out of 5 13% 3 out of 5 0% 5 out of 5 38% 3 out of 5 37% 5 out of 5 88% 4 out of 5 25% Advice from industry leaders to

3 solutions or tactics to the dashboard could be the difference between a GOOD answer and a GREAT answer. Telling the Story Overall, the most important attribute for DIDO, is articulating the story, particularly if it s not a rosy one. Of the respondents from HSMAI s Revenue Management Advisory Board, only one third said the importance of articulating good news is of the highest importance. Conversely, almost 90% responded the importance of articulating bad news is 5 out of 5 (the highest importance). Importance of Articulating Good News Importance of Articulating Bad News 4 out of 5 13% 3 out of 5 0% 5 out of 5 38% 3 out of 5 37% 5 out of 5 88% 4 out of 5 25% Advice from industry leaders to consider when thinking about telling your data s story is consistent: Revenue managers often have to "sell" news to their superiors. Often we find that they oversell good news, and underreport bad news. I believe this comes from a fear that their superiors will "shoot the messenger." The revenue manager should be able to articulate the entire story, good and bad, to their superiors. Revenue managers are infamous for data dumping interpretation and storytelling are critical. Revenue managers often struggle with data interpretation. It is an art that must be practiced and refined. Interpretation and storytelling are the most important parts, especially when you're trying to accomplish a strategy. So that leads to the next logical question: Does technology assist in this data interpretation? The overwhelming sentiment and reaction to this amongst survey respondents was that while technology is critical and helps save time, that time saved needs to be dedicated to analysis, planning, and strategy. Technology is not an answer; it s a tool to help arrive at an answer. Overall, active managers of DIDO understand the importance of their role within the organization. It is as much about communicating what the data means, as it is collecting the data. Effective managers of DIDO must spend as much of their time improving and adapting communication about the data as they do honing their data collection and organization skills.

About the Author Orly Ripmaster, CRME joined KSL Capital Partners, a Denver, CO based private equity firm specializing in travel and leisure businesses, in March 2012.

4 About the Author Orly Ripmaster, CRME joined KSL Capital Partners, a Denver, CO based private equity firm specializing in travel and leisure businesses, in March Prior to KSL, she was a senior manager and founding member of the Analytics division of STR (Smith Travel Research). She was actively involved in the creation and execution of multiple STR Analytics reports, implemented by numerous international hotel companies. Prior to joining STR Analytics she held several operational positions, including revenue management with Destination Hotels & Resorts. She holds a BA (cum laude) from Harvard University, a MA in Mass Communication from the University of Colorado and a MBA in Hotel Real Estate from ESSEC Business School in Paris, France. Orly is a member of HSMAI s Revenue Management Advisory Board. About the HSMAI Revenue Management Advisory Board The Revenue Management Advisory Board leverages insights, emerging trends, and industry innovations to guide the development of products and programs that optimize revenue for hotels. Members include: Co-Chair: Jon Eliot, CRME, CHA, Vice President of Revenue Management, Premier Hospitality Management Co-Chair: Sloan Dean, CRME, Vice President of Sales & Marketing, Interstate Hotels & Resorts Immediate Past Chair: Scott Roby, CRME, Vice President, Revenue Management, Evolution Hospitality Chris K. Anderson, Ph.D., Professor, Cornell University Bonnie Buckhiester, President & CEO, Buckhiester Management USA Inc. Sheila Cosgrove, Director, Revenue Management Ops & Planning, Intercontinental Hotels Group Kathleen Cullen, CRME, Vice President Revenue Strategies, Heritage Hotels and Resorts Kent Duncan, CRME, Vice President, Sales & Revenue Strategy, Marcus Hotels & Resorts Tammy Farley, Principal, The Rainmaker Group Neal Fegan, CRME, Executive Director of Revenue Management, Fairmont Raffles Hotels International Rhett Hirko, CRME, Director of Revenue Analytics, Hyatt Hotels & Resorts International Operations Jay Hubbs, Vice President, Regional Sales, ReviewPro Burl Hutchison, CRME, Director of Revenue & System Optimization, Sabre Hospitality Klaus Kohlmayr, Senior Director, Consulting, IDeaS - A SAS Company Mark Molinari, CRME, Corporate Vice President of Revenue Management and Distribution, Las Vegas Sands Orly Ripmaster, CRME, Senior Associate, KSL Capital Partners Mark Robertson, Central Director Revenue Management, Wyndham Hotel Group Susan Spencer, Market Director - N. America, ChannelRUSH Trevor Stuart-Hill, CRME, President, Revenue Matters Paul Wood, CRME, CHBA, Vice President of Revenue Management, Greenwood Hospitality Group

5 Want to Learn More? This topic will be addressed as part of the 10-part 2012 Revenue Management Webinar Series produced by the HSMAI University in partnership with HotelNewsNow and STR. Each month a webinar covers one aspect of cutting edge revenue management in today's economy in conjunction with articles written by members of the HSMAI Revenue Management Advisory Board. If you re not able to attend a live program, archives are available.

Taking these realities into consideration, where else but with a total revenue management approach will hotels see improvement in profitability?

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