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

4 min

Hotels Miss Revenue Opportunities by Not Assigning Accountability for Pre-Arrival Guest Engagement, Equivalent to 6% Occupancy.

💰 For hotels, pre-arrival periods are untapped revenue opportunities, as guests commit 11 weeks prior to arrival. Currently, hotels miss this chance, resulting in lost profits. For a 200-room hotel, just €12 per room in pre-arrival spending equals a profit of 6 occupancy points. Solutions include assigning a dedicated owner for pre-arrival engagement, aligning efforts across teams, and focusing on guest-specific offers rather than generic marketing campaigns.

5 min

Pre-Arrival Upselling Can Boost Hotel Revenue with €12 Additional Spend Per Room Night Yielding €613,200 Incremental Revenue

🏨 Hotel upselling, primarily during the pre-arrival window, boosts revenue significantly. For a 200-room hotel with 70% occupancy and a €180 ADR, a €12 average pre-arrival spend per room-night yields €613,200 in revenue—producing €459,900 in GOP at 75% flow-through. Achieving the same via room sales at 60% flow-through demands €766,500 more revenue. Focus on RevPOR, not RevPAR, for real guest value. Strategic, personalized pre-arrival communication maximizes profitability.

4 min

Hotel Groups Urged to Streamline Reporting by Focusing on Three Key Weekly Metrics Across Properties

📈 Eight in ten hotels spend up to two business days weekly on manual reporting, affecting revenue growth. Hotel systems have accumulated over 20 years, leading to inefficiencies. Questions take days to answer, costing general managers valuable time. Choosing three key questions—forecast adherence, mix shifts, and NetRevPAR—can standardize reporting across properties, saving time and resources. This approach ensures uniformity and efficiency, helping hotels focus on core operations instead of disparate data management.

3 min

Time Audit Reveals Revenue Managers Spend 25 of 40 Weekly Hours on Non-Decision Tasks, Urging Process Optimization

⏳ For five days, track your time in 30-minute blocks across three categories: Assemble (10 hours), Decide (15 hours), and Prove (15 hours). Of 40 hours, 25 are spent without resulting in a decision. Forecasting is overlooked, leading to inefficient time use. Aim for 3 hours assembling, 30 hours deciding, and 7 hours proving. Analyze your logs and propose changes to your commercial director to optimize time management, rather than relying on new software.

4 min

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.

4 min

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.

4 min

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.

4 min

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.

5 min

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.

5 min

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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