RM doesn't take a back seat during a downturn

During low occupancy periods, some hotel management teams mistakenly view RM as a low priority activity.

Published: 12 Jan 2009

During low occupancy periods, some hotel management teams mistakenly view RM as a low priority activity.

However, it is precisely during these challenging times that hotel professionals should be looking under the hood, and asking questions regarding the methods and the data used to manage hotel pricing and customer mix. Hotel teams should rely on RM processes to enable responsive sales, marketing, cost containment and pricing decisions that work in today's economy, according to Mainzer Consulting Group LLC's Bruce W. Mainzer.

In an article, posted on hospitalitynet.org, Mainzer has highlighted that case studies have shown that 4 to 12 percent improvements in RevPAR are achievable with effective RM processes. Recently, one large property that implemented a revised RM strategy during a 5 percent decline in demand still experienced a RevPAR increase of this magnitude. Since a single digit increase in RevPAR can easily translate to double digit increases in gross operating profit, RM's value during this period should never be ignored.

Hotel managers should be focusing on activities to maximise the contribution of their RM processes to hotel profitability during this economic downturn.

The full version can be read by clicking on this link:

http://www.hospitalitynet.org/news/4039351.search?query=airline+ancillary

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