anders@demandcalendar.com (Anders Johansson) - 10 Minutes News for Hoteliers - Page 3

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.

Businessman in a navy suit standing by a window, gazing at a city skyline.

3 min

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.

Professional woman in a blazer sits at a wooden desk, reading papers as city lights glow outside the window at dusk.

3 min

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.

Businesswoman in a navy blazer sits by a large window, gazing at a cityscape with papers and glasses on the desk beside her.

6 min

80% of Hotels Spend Up to Two Days Weekly on Manual Reporting, Hindering Effective Forecasting and Decision-Making

📈 Across ten hotels, 80% spend up to two days weekly on manual reporting, with an extra day added by head office. This affects general managers' time, impacting growth. Effective forecasting involves four conditions: one definition, cadence, meeting, and escalation line. General manager turnover averages one every 2.5 years, mainly due to owner conflicts. To improve, align definitions, reduce redundant reports, and focus on forward-looking profit views to ensure reliable forecasting and enhanced group performance.

Woman sits at a desk with two monitor screens showing charts, hand on chin in thoughtful pose during a nighttime work session with a coffee cup and highlighted documents nearby

4 min

HSMAI and ZS Study Reveals 39% of Revenue Managers Override Pricing Models Due to Poor Visibility

📈 HSMAI and ZS studied 145 revenue managers across 1,732 properties, revealing only 49% of their time is spent on revenue-generating tasks. Monthly forecasting is common, despite weekly demand shifts. Automation can reduce manual tasks, as seen at Classic Norway Hotels, which cut Excel use by 95%. Revenue managers override RMS price recommendations 39% of the time due to lack of reasoning visibility. Weekly forecasting, though less precise, offers better decision-making cadence.

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