Revenue managers look beyond rooms

Revenue streams from hotels with casinos or complex F&B programs need to be considered when yielding.

MINNEAPOLIS—While rooms revenue is the most critical—and typically the most profitable—revenue stream in a hotel, today’s revenue managers are broadening their scope and taking other areas of the hotel into consideration.

Particularly for hotels with casinos or complex food-and-beverage programs, these revenue streams need to be considered when pricing rooms, distributing inventory or negotiating group contracts, a panel of revenue managers said this week during the Hospitality Sales and Marketing Association International’s 10th Revenue Optimization Conference.

Revenue per available room may be the most widely used measurement for making these types of decisions, but analyzing different revenue streams by profit allows revenue managers to make the smartest decisions.

“We have to boil things down to profit,” said Neal Fegan, executive director of revenue management at Fairmont Hotels & Resorts. “We decided that we are going to be revenue stream agnostic. It doesn’t matter where the revenue is coming from, we’ve got to boil them down to profitability.” Read more

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By: Jason Q. Freed


About RezNext

RezNext is the world’s only true Real-Time Distribution Management Solution provider. It empowers hotels to adopt a distribution strategy that simplifies the complex global distribution environment and makes it understandable and manageable. It is integrated with revenue management, operating intelligence and powered with reputation management insights. RezNext’s portfolio of offerings include Rate & Channel Manager, Revenue Management, Online Reputation Management, Website Designing and Web Booking Engine, Mobile solutions, Central Reservation System, Business Intelligence, Property Management System (PMS) two-way connect, GDS and OTA Interface and Loyalty & Feedback Management. Our growing range of solutions can be access by hospitality properties across market segment and size, such as independent hotels, chain hotels, business hotels, resorts, clubs, service and limited service apartments, spas, restaurants and others.
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