Revenue Management

🍴 Bret Thorn serves as Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality since 1999, as well as the podcast host of "In the Kitchen with Bret Thorn." He wrote for The New York Sun from 2005 to 2008, worked in Thailand for Manager magazine and Asia Times from 1992 to 1997, and was an ABC News runner during the Tiananmen Square protests in 1989. His reportage has earned accolades, including the 2006 Jesse H. Neal National Business Journalism Award. Thorn, a magna cum laude graduate of Tufts University with a history degree, joined the Disciples d’Escoffier in 2014 and currently resides in Brooklyn, NY.

🍴 The Consumer Price Index data shows menu prices increased by 0.3% in August 2023, slightly up from July's 0.2%. Year-over-year, food-away-from-home prices rose 4%, compared to 4.1% in July. Limited-service meal prices rose 4.3% and full-service meals 3.8% over the last 12 months. Food-at-home prices remained flat in August after a 0.1% increase in July, with a year-over-year rise of 0.9%, marking 17 months that restaurant prices have outpaced grocery prices. The pricing gap between grocery and restaurant inflation is now 310 basis points, nearing the 390 basis points in 2016, according to Mark Kalinowski of Kalinowski Equity Research.

📋 Discover the essential daily hotel reports with Hotelogix's hotel property management system. Analyze and track hotel operations efficiently with these 8 must-have PMS reports to maintain optimal functionality. Reports are crucial for understanding the dynamics of hotel reservations and the overall performance of the establishment. The article does not specify dates or specific statistical data, but highlights the importance of using cloud-based systems for generating reports in the hotel industry.

🏨 Minimum stay restrictions, or MinStay/MinLOS, can fill less busy nights, save housekeeping costs, and increase hotel revenue. Ideal for various accommodations, they stabilize occupancy, especially during peak times, weekends, and events by encouraging bookings of two or three nights minimum. Adjustments are necessary when conditions don't allow for fixed minimum stays. Revenue management systems like RoomPriceGenie assist in optimizing these restrictions. Key strategies include understanding booking patterns, being flexible with restrictions, and offering packages for longer stays.

💰 During the Paris 2024 Olympics, hotels in Paris experienced a surge in revenue per available room (RevPAR), which increased by 195.9% compared to the previous year, following a gain of 207.2% during the event's first week. The average daily rate (ADR) rose by 137.8%, with occupancy rates increasing by 16.9 percentage points, leading to an overall occupancy rate of about 84% in inner Paris. The highest RevPAR, $735, occurred on Friday night, while Sunday saw RevPAR rise by 224.7%. The surrounding Île-de-France region also saw substantial gains, with a 169.1% year-over-year increase in RevPAR, driven by ADR and occupancy growth. The data was published by CoStar, a leading provider of hotel market data.

🌆 Paris' hotel occupancy hit 84% during the Olympics, a 10% increase from last year. Despite a slow start with tourists delaying visits due to fears of overcrowding and high prices, hotel bookings surged last-minute post-Games, concluding on August 11, 2024. Hotels offered discounts and incentives leading to the boost, although rates were double the normal. Owners sold non-refundable rooms in advance to secure revenue.

🏠 Wyndham Hotels & Resorts launched Trademark Collection in South Korea with La Vie D’or Hotel and Resort, expanding to over 30 hotels in the country. The hotel in Hwaseong-si features a nine-hole golf course, facilities for business travelers, and proximity to cultural sites. Spanning 330,000 square meters, it offers 190 guestrooms suitable for corporate events and weddings. South Korea saw 11 million visitors in 2023, with tourism projected to hit $13.66 billion by 2024.

🏨 Hilton CEO Chris Nassetta highlighted a spending slowdown at the lower ends of the hotel market, with economy RevPAR down 4.4% year-to-date June 2024. In contrast, luxury RevPAR is up 2.1%. Wyndham remains optimistic, citing a 2.6% annual growth in U.S. RevPAR since 2000. CoStar projects a 2% RevPAR growth for 2024 across all scales, but forecasts negative growth for midscale and economy segments. U.S. credit card debt is at $1.14 trillion. Group business recovers, with Marriott reporting 24% of room nights in Q2. New hotel supply is limited, with an annual rate of around 0.6%, and Lodging Econometrics records an all-time high of 6,095 projects in the pipeline for Q2, up 9% YOY.

💰 Forecasting and budgeting in revenue management are vital for setting hotel revenue goals. An accurate demand forecast is key for hotel budgeting, requiring historical, booking pace, and forward-looking metrics. Revenue management systems (RMS), like Duetto, can simplify this process by integrating data from various sources and generating forecasts and budgets quickly. RMS benefits include real-time data access, automatic forecast creation, data visualization, and scheduled reporting, leading to smarter cash flow management and efficiency in revenue operations.

🏨 Mews and Duetto surpassed 600 joint hotel customers, improving global hoteliers' revenue. Since the 2017 partnership, they operate in 29 countries, varying from 3-room to 800-room properties. Users report a 6% average revenue increase in the first year and a subsequent 10% RevPAR growth. Integration through Mews Marketplace is free, with 25% faster deployment than average PMS setups. Two-way data synchronization between Mews and Duetto enhances real-time pricing decisions and profitability.