1. Welcome.
Introductions.

2. Revenue Management, An Insider’s Viewpoint
Donald Potter, Director of Sales
Four Seasons Resort Hualalai
and
Althea Bryson, Regional Revenue Manager
Four Seasons Denver, St. Louis, Santa Fe
Different levels of understanding.
Some might be elementary, but hopefully everyone will learn something new... Or have a better understanding of our logic.

3. Revenue Management... The Perfect Puzzle
Revenue management is a science. Very analytical, very interesting.

4. Revenue management is the application of disciplined analytics that predict consumer behaviour at the micro-market level and optimize product availability and price to maximize revenue growth.
By definition...
Supply and Demand – Pattern Management – based on demand

5. Revenue Management is:
“Selling the right product
to the right customer
at the right time
for the right price.”
Robert G. Cross
Aeronomics Inc.
By definition...
Supply and Demand – Pattern Management – based on demand

6. A COMBINATION OF:
Transient
Group
Catering

7. Wed Tues In it’s most simplistic form... Supply and demand...
Happy Group!!
RFP – what we need to know – flexibility for arrival, pattern shift, banquet spend, VIP suite needs, who’s joining them... With spouses/families? Other off property functions?

8. A COMBINATION OF: Systems People and
making critical decisions in a quicker manner than ever before
all working towards completion of the revenue cycle
People
Systems
and
Describe the DORM role.... Flow of information from RFP – Sales manager takes lead into business review...
Sales and revenue management working together

9. Revenue Cycle
Experiences now more than ever create demand with social media!!
Let’s dig into maximizing revenue deeper....

10. All have to do with group leads as well – difference in strategy for group and transient for where the demand is.
Strategy meetings
Pricing – seasonality, rating verses comp set/value positioning
Small changes in pricing strategies can equate to millions of dollars
Distribution – selling on OTA’s verses FS.com
Let’s dig into Inventory Allocation

11. Maximizing Revenue through
monitoring future demand generators, competitive set and
INVENTORY ALLOCATION
How much is available at each price point?
Demand and competitive set intel feeds into how we manage our inventory... What we will yield and what we will sell.
YIELD MANAGEMENT PROCESS

12. The “Why” behind all the questions
Our goal is to occupy as many rooms as possible every night. Ideally we would like to be 100% occupancy 100% of the time!
If we took every catering or group request or every reservation as our guests call in (and never turned anyone away), we would sell out quickly on our highest demand days and lose the opportunity to sell more desirable patterns and/or higher rated business
So, we use caps and restrictions to YIELD the demand. We pick and choose what patterns and rates we take and when.

13. REVPAR = Rate x Occupancy
Focus on REVPAR
REVPAR = Rate x Occupancy
Always a balance between occupancy and rate
Pattern management
Also REVPASF

14. Whether or not to book a group or take a chance on the future?
Rolling the Dice...
Whether or not to book a group
or take a chance on the future?
SELL TO GROUP
SELL AT DISCOUNT
SELL AT FULL PRICE
SELL TO TRANSIENT
or.... EMPTY ROOM
Explain scenario: We have two options today:
Sell a room to the caller on the telephone for a discount. (OR GROUP)
OR Wait and See
We need to know what demand is out there!!
REVENUE
Discount Rate = $350
Full Rate = $500
Empty Room = $0

15. We would be able to make better decisions...
Forecasting Demand
If we knew....
What group leads will come in next?
Will they really pick up the rooms they contracted?
Who else is coming…?
When will they arrive?
How long will they stay?
When will they book?
How rate sensitive are they?
We would be able to make better decisions...
Forecasting demand is multi-layered...
LOS, lead time, demand by room type
Transient resort guest – stays longer and spends more in ancillary....

16. Forecasting Demand What we can look at... Economic indicators
Local events
Holidays
Competitive rate shops
Historical intel
Future PACE
Future PACE for competitive set
Demand by day of week, segment, room type
ETC....
Add lead time – how important it is for resorts – how it can change

17. Where can we find the intel...
Systems/Reports
Where can we find the intel...
News
Delphi
IDeaS
Demand 360
Hotelligence
Rate 360
Internal data - Company BI tool – past and future
Internal spreadsheets
STR – past performance
ETC....
Where do we look for this....
Delphi/GRC
IDeaS - displacement
Demand 360
STR
Show you some examples of these

18. Delphi – GRC – where we load our group leads – our hotel puzzle for group... You can see “transient protect” for the transient demand piece

19. IDeaS displacement analysis – looks at the transient demand and at profitability with other spend. The better the “teeth” in the group, the less displacement.
Profit – buyout – displacement of ancillary from other segments

20. Demand 360 – can drill down into what is in the comp set by day
Compression that will give us demand later

21. STR report looks at how we faired verses our comp set – who played the occupancy/rate game the best given the demand coming in

22. Get ready Put on your revenue management hat...
Let’s test your skills and play a little game...
Get 2-6 volunteers to come play the game...
Everyone to play, but focus on their results.

23. Who you gonna take?
You are the General Manager of your own 5-room hotel
I will read transient reservation opportunities
You don’t know what reservation opportunities will call or when
Accept or turn it down at the time the reservation opportunity is read
If accepting, write the rate in the room and days it is filling
You can use the same room for multiple reservations, but they cannot overlap (no double booking sleeping rooms!)
Do not go back and write in the reservation opportunity after it has been read
Do not overbook, accept waitlists or walk opportunities
Do not erase an opportunity once you have written it down

24. The phone is ringing...

25. Who you gonna take?
First call Tuesday arrival for 2 nights, BAR (Best Available Rate) rate

26. Who you gonna take?
Second caller Sunday arrival for 4 nights, BNB (Bed -n- Breakfast) rate

27. 3rd call Wednesday arrival for 4 nights, Advance Purchase
Who you gonna take?
3rd call Wednesday arrival for 4 nights, Advance Purchase 3

28. 4th call Tuesday arrival for 3 nights, Citi bank rate
Who you gonna take?
4th call Tuesday arrival for 3 nights, Citi bank rate 4

29. Next call Monday arrival for 2 nights, BAR rate
Who you gonna take?
Next call Monday arrival for 2 nights, BAR rate 5

30. Next call Tuesday arrival for 2 nights, Citi bank rate
Who you gonna take?
Next call Tuesday arrival for 2 nights, Citi bank rate 6

31. Next call Wednesday arrival for 1 night, BAR rate
Who you gonna take?
Next call Wednesday arrival for 1 night, BAR rate 7

32. Next call Sunday arrival for 5 nights, Stay Longer
Who you gonna take?
Next call Sunday arrival for 5 nights, Stay Longer 8

33. Next call Saturday arrival for 1 night, Advance Purchase rate
Who you gonna take?
Next call Saturday arrival for 1 night, Advance Purchase rate 9

34. Next call Saturday arrival for 1 night, BNB rate
Who you gonna take?
Next call Saturday arrival for 1 night, BNB rate 10

35. Next call Tuesday arrival for 4 nights, BNB rate
Who you gonna take?
Next call Tuesday arrival for 4 nights, BNB rate 11

36. Next call Monday arrival for 3 nights, BAR rate
Who you gonna take?
Next call Monday arrival for 3 nights, BAR rate 12

37. Next call Wednesday arrival for 2 nights, Citi bank rate
Who you gonna take?
Next call Wednesday arrival for 2 nights, Citi bank rate 13

38. Next call Thursday arrival for 2 nights, Advance Purchase
Who you gonna take?
Next call Thursday arrival for 2 nights, Advance Purchase 14

39. Next call Monday arrival for 5 nights, Stay Longer
Who you gonna take?
Next call Monday arrival for 5 nights, Stay Longer 15

40. The phones are quiet.... Let’s tally it up
Who you gonna take?
The phones are quiet.... Let’s tally it up

41. The Data don’t Lie! $3,400 revenue 20 occupancy points $46.03 ADR
If we took the reservations as they came in: 60% occupancy $7,550 in revenue $ ADR $ RevPAR Optimal: 80% occupancy $10,950 in revenue $ ADR $ RevPAR
$3,400 revenue
20 occupancy points
$46.03 ADR
$97.14 RevPAR
You can think about this with groups as well. If we put on the groups all at once, with different patterns, then we might not be able to fill in the nights around them... The more information on the group leads, the better we can quickly analyze... And book the business with you!

42. Any questions??
About anything we covered or anything else?

43. Thank you!!