Optimization Advisory Board News Today

It goes without saying that we’ve had a lot of change over the last several years – some as a direct result of the pandemic and post-pandemic era, and some changes have been unrelated, like the surge of AI tools over the last year and the marked generational shift.

Personalization is not just about personalized pricing; it’s a revenue driver and powerful conversion tool for all commercial strategy disciplines that is capable of increasing revenues by up to 40%. I brought this topic to HSMAI’s Revenue Optimization Advisory Board for discussion. In this article, I outline our group’s key ideas for effective personalization.

It is no secret that we are still facing a labor shortage. However, the hospitality industry isn’t just grappling with a talent shortage, we are dealing with a retention problem. The answer may lie in the way we approach leadership. I brought this topic to the HSMAI Revenue Optimization Advisory Board to discuss purpose-driven leadership in revenue optimization.

We have all been there. You are scrolling through rates for a hotel room, find one that looks great, and then you see the dreaded words “additional fees may apply.” Suddenly, that great rate doesn’t seem so great anymore. As a consumer, it can be frustrating to see those additional fees. Often, we don’t even know what they are for. What is a kitchen fee? What does the service fee cover? How much are they going to be?

Last month the HSMAI Revenue Optimization Advisory Board met for a discussion of the budget process. A timely topic, as many companies are in the midst of developing budgets and preparing for 2023. I posed the question, is budgeting a waste of time when it is rarely accurate anyways? Especially in the current environment of pandemic recovery, inflation and recession rumors, there are so many unknowns that make budgeting akin to throwing a dart at the wall. What is the point of taking hours, week...

It seems our industry is or at least it was prior to Covid addicted to REVPAR. But we all know that measuring REVPAR is only an indication of room revenue performance and has absolutely nothing to do with profit. With ever increasing reporting tools we now have the ability to measure and even index GOP within a comp set just like REVPAR. The question is, who if anyone in our industry will take this giant step? Who will lead the charge to get comparable profit per available room as a key measurem...

Price adaptations have rapidly moved from being a profit optimization lever to an essential tool for commercial survival in times of massive cost turbulences. Yet, price increases are often implemented quickly and in an indistinguishable manner (e.g., same increase throughout multiple markets or across multiple market segments). In addition, sales is often not thoroughly trained to ensure success in rolling out new pricing approaches.

Last June, MGM Resorts International activated a solar park that will power up to 90% of its 13 Las Vegas properties. According to the Associated Press, the company says the initiative is “the hospitality industry’s largest renewable energy project.”