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

3 min

Hotel CEOs Urged to Prioritize Profit Over Revenue by Measuring Flow-Through to Enhance Investment Decisions

💸 Two hotels, both report €5 million in revenue, but profits differ due to varied acquisition costs and revenue streams. The key is flow-through, which reveals profit from each euro. CEOs should analyze profit margins, ranking properties by flow-through rather than revenue, to make informed investment decisions. Focus on profit-oriented revenue management to ensure revenue converts effectively to profit, optimizing every euro spent.

4 min

Hotel Groups with 10-20 Properties Urged to Unify Forecasts for Better Profit Visibility, Says Demand Calendar

📈 At 10-20 hotels, commercial managers often run three operations: sales, marketing, and revenue, each with separate scoreboards. This disjoint leads to profit discrepancies despite perceived successes. Many groups sit at Level One or Two, indicating fragmented planning with reconciliations post-hoc. Climbing to Level Three or Four involves sharing forecasts and metrics, making acquisition costs visible pre-spend. CFOs favor this climb for improved cash flow and reduced reconciliation time, ensuring decisions are informed and aligned.

5 min

Hotels Urged to Shift Focus from Channel Costs to NetRevenue for Profitable Growth, Utilizing Eleven Dimensions

🏨 OTA commission rates rank at 18%, while direct bookings are at 4%. NetRevenue, defined as guest-paid revenue minus customer acquisition cost (CAC), is critical for hotel profitability. CAC consists of four cost categories: commission, transaction, loyalty, and other costs, impacting profitability significantly. Utilizing two-variable analysis across eleven dimensions can expose hidden profit segments. Strategic moves include contract renegotiation, marketing budget redirection, and curtailing low NetRevenue segment spending to enhance profitability.

4 min

Hotel Industry Urged to Prioritize Alignment and Total Revenue Over AI for Effective Management in 2026

📈 In 2026, hotel industry discussions focus on AI, yet the real issue is the lack of data alignment in commercial teams. Meetings typically involve seven roles, each with differing forecasts, leading to confusion. A BI tool doesn’t resolve this, as it can perpetuate silos. Key solutions include achieving alignment, incorporating total revenue forecasts beyond rooms (60-70%), and maintaining a weekly cadence. Additionally, data quality is crucial and a management responsibility, not a technological one.

4 min

Hotel Technology Must Transform Processes, Not Just Automate Existing Inefficiencies, for Real Efficiency Gains

🏨 Hoteliers face challenges with tech tools: while "built by hoteliers" promises alignment, current processes remain flawed. Hoteliers often spend hours manually rebuilding forecasts, leading to inefficiency. A unified forecast for finance, sales, and revenue can streamline decision-making, preventing wasted time on outdated processes. When evaluating vendors, prioritize whether tools transform processes rather than simply automate existing ones. Effective tools should enable decisions and track outcomes, ensuring profit, not just speed.

Hotel Portfolios Benefit from Horizon-Based Review Strategy, Shifting Focus from Individual Properties to Strategic Coordination

🏨 Twelve hotels have 36 forecast horizons, split into strategic (120+ days), tactical (30-120 days), and operational (within 30 days). A portfolio review by horizon reveals patterns across properties, enabling strategic budget reallocation and coordinated promotions. Standardized forecasting ensures comparability. Aligning the portfolio allows for managing demand across all hotels, transforming separate forecasts into one unified plan. Early identification of soft quarters affords proactive measures, optimizing profitability and resource allocation across the group.

3 min

General Managers Should Prioritize System Integration Skills Over Excel Fluency in Revenue Management Hires

📈 A new Revenue Manager joined a team and by Friday, ran a parallel forecast that did not match the shared system. Despite 10 years of experience, her reliance on Excel led to trust issues as forecasts differed. Within one week, the team's trust crumbled due to this parallel system. Warning signs include mismatched numbers, shared forecasts as PDFs, and blocked solo time. Hiring should focus on curiosity about shared systems rather than Excel skills to prevent these issues.

2 min

Reliance on Single Revenue Manager's Excel Forecasts Poses Significant Succession Risk and Operational Challenges for Hotels

📈 Eleven years: A Revenue Manager relies on a complex Excel workbook with 14 tabs, hidden columns, named ranges, and 3 macros. When they're absent in August for three weeks, forecasts freeze or rely on guesses. Succession risks arise with budgets revised in Q1 and onboarding costs as new hires spend six months unraveling previous logic. Decision latency, knowledge transfer time, and cross-team trust are critical metrics. A shared system ensures continuity and strategy visibility for all teams.

3 min

AI in Hospitality Requires Unified Forecasts for Effective Implementation, Not Just Faster Processes

💻 AI solutions for hotels promise faster insights but falter without unified forecasts. Different departments—Revenue, Sales, Marketing, F&B, Operations, Finance, and GM—rely on disparate forecasts. AI accelerates decision-making but multiplies errors if the data lacks consistency. Current AI focuses on room data, neglecting other revenue streams like F&B and spa. Successful hotels prioritize a single, comprehensive forecast, integrating all revenue streams and profits. Before adopting AI, ensure vendors address which forecast their system uses—it's crucial for meaningful insights.

3 min

AI Tools Enhance Revenue Management Efficiency, But Collaboration Across Hotel Departments Is Crucial for Maximum Impact

📈 By 8 am on Monday, an AI agent provides a forecast summary, saving two hours. However, misalignment occurs as Sales, Marketing, and F&B make decisions based on outdated information. Despite fast data processing, the real issue is the forecast not being shared across departments, leading to inefficiencies. The solution: a unified forecast for all departments to enhance collaboration and decision-making, saving more time than just relying on AI.

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