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
Published in: http://www.hotelnewsnow.com
By: Jason Q. Freed