ishc - annual conference crystal ball sound-byte revenue management – a discipline coming of age...
DESCRIPTION
3 Evolving Discipline Inventory Mgmt. Yield Mgmt. Revenue Mgmt. Revenue & Profit Mgmt.TRANSCRIPT
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ISHC - Annual Conference Crystal Ball Sound-byte
Revenue Management –A Discipline Coming of Age
San DiegoFriday, October 21,
2005
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2
Look for these Trends
1. Rapid evolution to profit management2. Scarcity of resources while raising the bar 3. Trying to “shoe a horse on a dead run”4. RMS frenzy 5. RM audits becoming a must
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3
Evolving Discipline
InventoryMgmt.
Yield Mgmt.
RevenueMgmt.
Revenue &ProfitMgmt.
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Scarcity of Resources Coming up thru ranks hasn’t cut it Well trained DRM’s in high demand $75-$85k + 30% bonus – property level Many don’t leave the brands Tactical expertise insufficient
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5
Raising the Bar Certification initiatives AHLA, HSMAI, NYU, Cornell Brands working with institutions
(Hyatt & University of Houston) More emphasis on leadership &
communication (any one can crunch numbers)
Not looking in ops – looking in sales w/ analytical skills
Executive committee member
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Trying to Shoe a Horse on a Dead Run
0%
5%
10%
15%
20%
1980GDS
2000GDS
IDS1999
IDS2004
As % of Total Reservations
4 Fold in 20Years15 Fold in 5Years
Sources: YPBR, MSNBC, hotelnewsresource.com, TIGglobal/HSMAI
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7
Growth in Online Lodging Bookings
Source: Jupiter Communications/TGI Global HSMAI
$0.6 $2.0 $3.1 $4.1 $5.2 $6.3
$15.5
$7.3
$24.0
05
10152025
'99 '00 '01 '02 '03 '04 '05 '06
As of 2001As of 2004
Billions $
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Who’s Going to be Booking On-Line?
01020304050607080
BabyBoomersGenerationX'ersEchoBoomers
Baby Boomers - born 1947 - 1965
Generation X - born 1966 - 1977
Echo Boomers - born 1978 - 1997
Millions
Where is the future online market for your clients?
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RMS Frenzy
Up hill battle for the RMS companies Complex markets/distribution forces hotels
hand Shorter lead time all segments Dynamic pricing all segments Dynamic inventory all segments More cost effective RMS options RMS’s will become standard “equipment” But can’t give a Ferrari to student driver
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RM Audits Become a Must
Feasibility studies Real estate sales Brand changes Management company changes Ownership changes