Your Questions Are Free. The Answers Cost a GM Day.
A question from the top of a hotel group costs nothing to ask. It costs somebody three days to answer, and the bill goes to the person you can least…
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[email protected] (Anders Johansson)
57 posts
You Report for 15 Hours a Week. Forecasting Gets the Leftovers.
You do not run out of hours. You run out of hours in the right place. Below is a measurement you can run on your own calendar this week: three…
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Inconsistent KPI Definitions Across Hotel Groups Lead to Misguided Management Decisions and Growth Underwriting Risks
📈 Adel Gouda outlines 20 hotel revenue management rules, noting 14 don't apply across groups due to differing data practices. Hotels change GMs every 2.5 years, often due to owner conflicts. Growth is hampered by inconsistent metrics, affecting underwriting and contract retention. Operating costs exceed RevPAR growth, thinning margins. Comparing market-driven hotel rankings misleads management evaluations. Suggested actions include standardizing metrics and reviewing GM reporting time to optimize management and operational decisions.
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Adel Gouda Identifies Four Key Hotel Revenue Management Rules That Are Costly Despite Requiring No Data
📈 Adel Gouda's 20 hotel revenue management rules highlight that 16 rely on data and 4 don't. A 200-room hotel forecasts 60% occupancy at €140, considering a rate drop to €119. Holding at €140 yields €13,296 in contribution; dropping to €119 yields €15,129, if occupancy reaches 125 rooms. The decision hinges on estimating additional arrivals and requires pre-calculated metrics for quick decision-making, emphasizing rule adherence's complexity and cost.
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Hotel Groups Face Growth Challenges Due to General Manager Shortage, Not Capital Constraints, Study Finds
🏨 In a hotel group, growth hinges on general managers (GMs), not just capital. Research by Cornell and EHL reveals GMs face owner influence in financial and operational decisions. Manual reporting consumes up to two business days weekly for 80% of hotels, per the 2025 State of Distribution report. A group of 12 hotels losing two GMs in a year struggles to grow. Solutions include aligning GM-owner reports, reducing manual data tasks, and developing transferable commercial strategies.
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Hotels Risk Annual Revenue Losses of Up to 3% Due to Capacity-Capped Forecasting Data Issues
📈 180-room hotel struggles with capped demand forecasts due to sold-out nights. Forecasts don't account for unmet demand—resulting in a 1-3% revenue loss. Underestimating demand by 12.5-25% can cost 3%. Over 12 sold-out nights, potential revenue loss is 25,920 euros, with nearly all impacting profits. Airlines' revenue management research suggests a 2-12% revenue gain by adjusting demand history. Solutions include counting constrained dates, using look-to-book ratios, and documenting rate assumptions.
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Hotel Groups Can Boost Profits by Closing GOPPAR Gaps Without Additional Capital or Acquisitions
🏨 Hotel groups spend a year analyzing GOPPAR to identify growth opportunities from internal performance gaps. By sorting hotel portfolios, companies can measure the gap between top and bottom performers. This internal disparity often exceeds potential acquisition gains. To improve, strong leadership habits are necessary, and commercially aligned organizations grow 1.9% faster in revenue and 4.7% faster in earnings. Solutions include sending managers to top-performing hotels and standardizing forward-looking forecasts.
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Hotel Revenue Managers Urged to Measure Adoption Rate as Well as Forecast Accuracy to Improve Decisions
📈 Every week, hotel revenue teams assess forecast accuracy, yet only 39% of recommendations are acted upon. A 200-room hotel at €150 average rate and 75% occupancy risks €800,000/year in misread revenue when demand is misjudged by 8-12%, with €250,000 potentially recoverable. Research shows 49% of revenue managers’ time focuses on revenue-generating tasks, while 30% is spent convincing stakeholders. Transparency and shared forecasts can improve adoption and decision alignment.
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Hotels Spend 80% of Time on Manual Reporting, Leading to Missed Revenue Opportunities, Says 2025 Report
📈 In 2025, 80% of hotels spend up to two days weekly on manual reporting. A unified forecasting method improves decisions, shifting them earlier in the year. It aligns costs and marketing with forecasts, ensuring that marketing spend targets low-demand weeks. Commercially aligned organizations see 1.9% higher revenue growth and 4.7% higher earnings growth. An Expedia study highlights that 98% of hotels lose revenue due to rate misuse. Improved forecasts enhance owner confidence and decision-making.
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Revenue Managers Spend Only 49% of Time on Revenue-Generating Work, Study Highlights Automation Benefits
📈 Revenue managers spend 49% of their week on revenue-generating tasks, 13% on system updates, and 5% in strategy meetings. Automation can cut manual work, as Alexander Killi at Classic Norway Hotels reduced Excel tasks by 95%. Time saved should be allocated to strategic tasks like booking pace, displacement math, and forecast variance. Protecting freed hours and engaging in analysis during meetings can enhance decision-making, ultimately improving a revenue manager's effectiveness.
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