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

Transcription

1 HSMAI Washington DC Chapter Program By the Institute for Hospitality & Tourism Education & Research & HSMAI

2 Opening Presenters Karen Wollard, Ed. D., Associate Director, Professional & Continuing Education, The Institute (IHTER) at the Chaplin School of Hospitality and Tourism Management Fran Brasseux Executive Vice President, HSMAI Executive Director, HSMAI Foundation

3 Total United States* Key Performance Indicator Outlook (% Change vs. Prior Year) 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

4 Total United States* Chain Scale Key Performance Indicator Outlook 2015F by Chain Scale 2015 Year End Outlook Chain Scale Occupancy (% 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

5 Total United States* Chain Scale Key Performance Indicator Outlook 2016F by Chain Scale Chain Scale Occupancy (% chg) 2016 Year End Outlook 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 States 0.8% 5.0% 5.8% *STR

6 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

7 The New World

8 How has the world changed? IHG The World Changes Traditional fences of: Geography Segmentation Language Channels Even knowledge have become irrelevant. Things have changed!

9 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.

10 Top 10 Challenges Facing Hotels 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

11 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

12 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

13 Need for Convergence Changing Roles of Sales & Revenue GM DOS DORM Working as a teamto 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

14 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 TOTAL 100 $187 $561,000 $166 $497,760 14

15 Segmentation Mix: Scenario 2 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 15

16 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!

17 The Program

18 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