anders@demandcalendar.com (Anders Johansson) - 10 Minutes News for Hoteliers - Page 2

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4 min

U.S. Hotel Operating Costs Rise 4% Annually, Driving Need for Unified Forecasting to Prove ROI and Support Growth

🏨 U.S. hotel operating costs rise 4% annually, while RevPAR growth lags, causing a decline in GOP margins for three consecutive years. General managers change every 2.5 years, mainly due to conflicts with owners. 80% of hotels spend two business days weekly on manual reporting. Hotels with a single forecast can increase revenue by 1.9% and earnings by 4.7% compared to peers. Emphasizing a unified reporting system aids growth and maintains GM retention.

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4 min

Hotel Groups Lose Over €40,000 Annually Per Property Due to Delayed Decision-Making and Inefficient Forecasting

🏨 A 120-room hotel spends €24,000 annually on labor gathering data, leading to a €40,000 annual loss, including €16,000 from delayed decisions. For a group of 11 hotels, the cost escalates to €440,000. Inefficiencies arise from poor forecasting, overstaffing, and wasted resources. Classic Norway Hotels reduced spreadsheet use by 95%, saving 4,800 hours yearly. Implementing unified forecasts and synchronized decision-making across properties can significantly reduce these costs.

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3 min

Classic Norway Hotels Reduces Spreadsheet Use by 95%, Saving 4,800 Hours Annually with Unified Revenue System

📈 Sales, marketing, and revenue teams face inefficiencies, spending 12-15 hours weekly on manual data reconciliation. Incomplete data, especially from non-room services, skews decision-making. Classic Norway Hotels cut spreadsheet use by 95%, saving 4,800 hours annually through a unified system. To optimize, integrate total revenue data, end number discrepancies, and build forward-looking forecasts. A single, shared forecast can prevent missed opportunities, enhance pricing strategies, and improve profit margins.

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4 min

Analyzing Group Bookings Against Transient Demand Reveals True Revenue Impact, Suggests New Evaluation Strategies

📊 Group bookings are not always wins. A group priced at 180 EUR can replace transient bookings at 240 EUR, resulting in a 60 EUR loss per night. High-demand weeks see transient guests taking up 80% of potential rooms, while low-demand weeks see only 10%. Honest scoring involves comparing group revenue minus costs with a transient-only scenario, impacting sales strategies and group mix decisions. Three key actions include evaluating displaced transient demand, carrying full costs in evaluations, and scoring groups 30 days post-departure.

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5 min

Hotels Should Rank Booking Channels by Net Contribution, Not Room Revenue, to Optimize Profitability

📊 The article highlights the impact of net contribution ranking on commercial strategies. OTA commissions range from 15% to 25%, while wholesale markups are 20% to 30%. Booking.com has high cancellation rates compared to brand.com voice. Loyalty bookings can sometimes contribute less than OTA bookings. Three actions for hotels include rebuilding rankings, mapping cost stacks, and reviewing bottom channels quarterly. The integration of various systems is crucial to determine net contribution per booking.

4 min

Demand Calendar Advises Hotels to Analyze Booking Pace and Capacity for Accurate Monthly Revenue Forecasts

📅 July is ahead of last year on the books, but the true finish depends on if it fills as well. A snapshot isn't the final number; remaining pickup pace matters. A room type selling out early can cap overall performance. Evaluate three aspects: remaining pickup vs. last year, treat the landing as a range, and check room type capacity. Demand Calendar reconciles data to show real outcomes, factoring in capacity constraints.

4 min

Revenue Gains: Distinguishing Between Pricing and Mix Changes to Avoid Misleading Financial Interpretations

📊 July's revenue rose 6% from last year, but be cautious: a higher average daily rate (ADR) might not signify effective pricing, but rather a shift in booking mix. Separating volume, mix, and rate reveals true gains. Misinterpreting mix gains as pricing victories can lead to strategic errors. Use three checks: analyze monthly variance, segment share shifts, and identify lost segments. Proper analysis prevents costly misreads and ensures accurate decision-making for future quarters.

3 min

Smaller Hotel Groups Can Outperform Chains by Prioritizing Speed in Decision-Making Over Data Accumulation

📈 Twelve months after deploying a new data platform, decision speed remains unchanged across the hotel group. Chains boast larger data analytics teams and budgets, but small groups can exploit speed. For instance, when a concert causes a demand spike, chains take weeks to adjust prices, while smaller groups can reprice in a day. Winning depends on a tight decision rhythm: one forecast, a weekly decision meeting, and tracking actions, not just data.

4 min

Unified Forecasting System Proposed to Improve Alignment Between Sales, Revenue, and Marketing Teams for Better Profitability

📈 Did commercial performance hit the plan? Reporting on past data, Sales, Revenue, and Marketing teams use separate files, delaying strategic decisions. Sales reports contracts, Revenue reports rates, and Marketing reports acquisition costs. Lack of integration leads to missed opportunities, like losing money on a 40-room block booking. Implement a single shared forecast and scoreboard to align teams, track net profit by segment, and steer results in the actionable 90-day period, instead of reconciling past data.

3 min

CEOs Urged to Allocate Capital Based on Marginal Return Rather Than Equal Distribution for Higher Profits

💵 CEOs should shift budget allocation strategies to boost profits. Even distribution based on size and past revenue caps returns. Instead, focus on marginal return, optimizing where each euro earns most. By funding high-margin guest segments and channels, profits increase. Key moves include ranking investments by marginal return, targeting profitable segments, and ensuring each euro's profitability. This approach, outlined in the Profit-Oriented Revenue Management (PORM) framework, aligns investments with future profits rather than past performance.

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