While revenue management remains a critical component for growing your hotel's occupancy, rate, and RevPAR, the emerging practice of revenue strategy can help you build an even more successful business. These slides, recently presented by Tim Peter at HFTP's HITEC conference, in conjunction with HSMAI, help explain the key revenue levers available to successful hotel marketers, and how you can make the most of them to improve your hotel's overall performance.

1. Using Revenue Levers to
Drive Profitability

3. Sold for $28,000

4. 3 levers for successful RM
Direct vs. indirect channels
CRM + RM = ProPAR
SUB
POINT
Brand image => Perceived value
Value => Rate

9. Google has rich data sets about guests
• Search provides
information about
intent and
interests
• Gmail provide
access to loyalty
membership/
preferences
• Mobile offers
location data

10. Driving “Limited Offers” product because they
know who the guest is
• Discounted rate, sold as CPA
• Tied to hotel loyalty programs
• Doesn’t violate rate parity agreements as it targets specific, known customer
segments
• Results are promising, but far too premature to offer conclusive insights

11. Amazon Local offers to Prime members

14. Cornell study suggests better
reviews lead to increased RevPAR
Pricing
Power
(ADR)
Demand
(Occupancy)
Performance
(RevPAR)
All
+0.8%
+0.2%
+0.96%
Upscale
+0.67%
+0.19%
+0.83%
Upper
Midscale
+0.74%
+0.42%
+1.13%
Midscale
+0.89%
+0.54%
+1.42%
Measured
change
in
pricing
power,
demand,
and
performance
given
a
1%
change
in
online
reputaMon
Source:
Cornell
Center
for
Hospitality
Research

15. Real-world says so, too
• Achieved top positions in TripAdvisor,
Yelp, social channels
• Occupancy index improved to 95-105
• ADR index improved to 107-180
• RevPAR index improved to 109-169
• Growth above comp set
• Reduced or held OTA share below 10%
Source: Tim Peter & Associates client data; STR Monthly Hotel Survey; Running 12 months ending March, 2015

16. 3 levers for successful RM
Direct vs. indirect channels
CRM + RM = ProPAR
SUB
POINT
Brand image => Perceived value
Value => Rate

17. Thank You
Web: timpeter.com
Phone: 201-305-0055
Email: tim@timpeter.com
Twitter: twitter.com/tcpeter