THE MAGAZINE OF THE WORLDWIDE HOTEL INDUSTRY
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com
Ann Bagel Storck , Managing Editor 1.312.274.2209 E-mail : astorck @ hotelsmag . com
Nathan Greenhalgh , Associate Editor 1.312.274.2229 E-mail : ngreenhalgh @ hotelsmag . com
Dani Friedland , Assistant Editor 1.312.274.2223 E-mail : dfriedland @ mtgmediagroup . com
Queenie Burns , Vice President , Design 1.312.274.2216 E-mail : qburns @ mtgmediagroup . com
Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com
Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com
Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Mary Gostelow , Adam Kirby
PUBLISHING Dan Hogan , Vice President , Publisher 1.312.274.2221 dhogan @ hotelsmag . com
INTERNATIONAL ADVISORY BOARD
Nakul Anand Chief Executive , ITC Hotels Ltd ., Gurgaon , India
Stephen Bartolin Chairman and CEO , The Broadmoor , Colorado Springs , Colorado
Eric Danziger President and CEO , Wyndham Hotel Group , Parsippany , New Jersey
Geoffrey Gelardi Managing Director , The Lanesborough , London
Laurence Geller President and CEO , Strategic Hotels & Resorts , Chicago
Kirk Kinsell President , the Americas , IHG , Atlanta
Alex Kyriakidis President and managing director , Middle East and Africa , Marriott International , Dubai
Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia
Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta
Paul Sistare President and CEO , Atlantica Hotels International , São Paulo
Kathleen Taylor President and CEO , Four Seasons Hotels and Resorts , Toronto
Susan Terry Vice President Culinary Operations , Hyatt Hotels North American Operations , Chicago
EDITORIAL AND PRODUCTION OFFICES , HOTELS Marketing and Technology Group , 1415 N . Dayton Street , Chicago , Illinois 60642 USA ; 1.312.274.2200 ; fax : 1.312.266.3363 edit @ hotelsmag . com
SUBSCRIPTIONS / CHANGE OF ADDRESS For address changes or subscription questions , please contact : Customer Service , HOTELS , 1209 Dundee Ave . # 8 , Elgin , Illinois 60120 USA . 1.800.554.7470
Hoteliers or technicians ?
Finding the right channel distribution mix to optimize rate and drive top-line revenue has to be the most overwhelming proposition in the hotel business today . It is quickly turning hoteliers more and more into technicians .
Of course , I will never discount the softer side of the business and what a seasoned hotelier can do to create spaces that connect with guests on both an emotional and functional level . But when you stop to consider the seemingly endless chatter at the recent Americas Lodging Investment Summit in Los Angeles surrounding social media , OTAs , flash sales and the rollout of the supposed OTA antidote — RoomKey . com — by several of the industry ’ s biggest brands , it is clear that figuring out how and where to market guestrooms has become a dizzying proposition .
Enter the revenue manager . Strategic Hotels & Resorts CEO Laurence Geller recently suggested that a hotel ’ s revenue manager is the most important position on staff , which is why this month we take a look at the role of revenue managers and how they interact with the rest of the team — both at the corporate and property levels . HOTELS ’ Nathan Greenhalgh reports that the position now requires a fair amount of finesse to communicate with and influence a hotel ’ s general manager and sales team . The end game is to draw the optimal business mix , and it is not always about the highest rate .
Revenue management has become such an integral part of a company ’ s leadership structure that larger hotel management companies are building teams of remote revenue managers , some divided into clusters in various cities and others all located at the company headquarters or simply working from home .
I will only suggest GMs and corporate leaders not lose control to the point where the revenue managers and their desires to drive RevPAR at all costs wield
Editor In Chief too much power . At the end of the day , sales , marketing and the various disciplines at the property must share ideas and objectives for the greater good of the hotel . Remember , it is a mix .
HOTELS will continue to feature reports about the growing number of distribution options and issues facing hoteliers today . This month we include a brief Q & A with the GM of travel for Groupon , the preeminent deal-of-theday website , a model that has earned the wrath of many a hotelier because its 50 % -off-and-more daily deals outwardly seem to erode the value equation and make it harder to drive rate . However , on p . 8 we let Groupon explain itself to help hoteliers better understand the flash sale model .
Next month , we will offer features on how to best work with OTAs and how to make the most out of your social media strategies . These are among the hot topics of the day , and we hope to provide you with useful insights into a hotel distribution world evolving at an explosive pace .
www . hotelsmag . com March 2012 HOTELS 5