several tools for revenue management at its properties and , as Patrick Pahlke , its EVP and chief commercial officer , noted , the company looks for tools that provide quality demand forecasting , price optimization , inventory and channel management , as well as quality reporting and analytics " that integrate with our other systems on property ,” he said .
PROFITABLE SEGMENTS Having an efficient RMS can help zero in
Harry Carr , SVP of revenue management , Pivot , the lifestyle operating vertical within Davidson Hospitality Group .
on a reliable pricing strategy , understand demand trends and help gauge the most profitable segments for hotels .
Pivot , the lifestyle operating vertical of Davidson Hospitality Group , identifies guests booking directly with its hotels and those spending on items outside the room rate as some of the most profitable guest segments .
“ Guests who stay multiple nights , eat at the restaurants at the hotels , use the spa and contribute the highest volume of TRevPOR ( total revenue per occupied room ) are our most profitable ,” said Harry Carr , SVP of revenue management for Pivot .
Groups and conferences were a high portion of business for Sage Hospitality prior to the pandemic and those segments are now coming back .
“ Our sales teams are fully focused on layering that business into our mix across the portfolio so that we can maximize revenues in other segments ,” said Pahlke .
Hotel companies rely on technology to optimize revenue management . One hospitality RMS provider is San Franciscobased Duetto , which counts such clients as citizenM , Standard International , NH Hotel Group , Louvre Hotels , Radisson Hotel Group , Melia Hotels Internationals and more than 150 casino resorts , which use Duetto ’ s RMS to optimize their rooms and suites and their portfolio of products through their multi-revenue approach .
Kathy Hood , SVP of revenue management , Davidson Resorts and Davidson Hotels .
Duetto ’ s Chief Revenue Officer Chris Crowley said that demand and rates have both increased for full-service hotels and convention center hotels , two segments that were depressed during the pandemic .
Duetto ’ s global data show that destination resorts continue to thrive , with Q1 room nights up 23 %, average daily rate up 6 % and room revenue up 23 % compared to the same time last year . Duetto data for Q4 2022 showed a 240 % increase in room nights and a 283 % growth in room revenue for properties in North America .
DEMAND PATTERNS Demand can be impacted by local influences and seasonal patterns , say hoteliers . It can also be hyperlocal and can react to events such as concerts , regional events and conventions . Look no further than the recent Eras Tour by Taylor Swift , which boosted occupancy and caused demand to skyrocket in the cities where she performed in the U . S .
Meanwhile , environmental impacts and concerns of climate change also affect demand . Weather patterns have changed when people want to travel and to which destinations .
“ The corporate window of Monday to Wednesday doesn ’ t exist anymore and this has changed the number of static rates in the market ,” said Crowley . “ Rates are much more dynamic as seasonality is less predictable .
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