1. ISHC - Annual Conference Crystal Ball Sound-byte Revenue Management – A Discipline Coming of Age San Diego Friday, October 21, 2005

2. 2 Look for these Trends 1. Rapid evolution to profit management 2. 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

3. 3 Evolving Discipline Inventory Mgmt. Yield Mgmt. Revenue Mgmt. Revenue & Profit Mgmt.

4. 4 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

5. 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

6. 6 Trying to Shoe a Horse on a Dead Run Sources: YPBR, MSNBC, hotelnewsresource.com, TIGglobal/HSMAI

7. 7 Growth in Online Lodging Bookings Source: Jupiter Communications/TGI Global HSMAI Billions $

8. 8 Who’s Going to be Booking On-Line? 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?

9. 9 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

10. 10 RM Audits Become a Must Feasibility studies Real estate sales Brand changes Management company changes Ownership changes