Revenue Management

Charlestowne Hotels commits exhaustive resources to provide clients a leading edge in the complex myriad of electronic distribution channels, as well as to manipulate the positioning of properties in all distribution channels to fully maximize revenue yield.

Charlestowne Hotel’s approach to enhance revenue and profit generation is at the core of what differentiates the company from competitors.  The most significant ingredient in this process is not going to be any of the concepts listed below. Instead, Charlestowne Hotels implements a revenue maximizing culture and belief system at each property, without compromising the quality of the guest experience. This is the first step in the attempt to drive higher returns.

This list is in no way exhaustive, but is meant to illustrate the potential for immediate enhancements, and in turn, immediate profit gains.

Inventory Management and Selling Structure

  • Evaluate the booking engine for the property’s website – ensure marketing efforts on this channel are fully maximized while costs are minimized.
  • Update email newsletters and email collection techniques.
  • Initiate and/or monitor pay per click strategies, search engine optimization, the redesign of the website, pod casting, blog entries, customer relationship management, etc.
  • Conduct audits, and provide responses for guest review pages within Trip Advisor, Expedia, Travelocity, etc.
  • Perform rate sequencing in all distribution channels. Even if a property’s rates are positioned correctly in the marketplace, not offering them to the customer in the most effective way can cost the property revenue and result in lost sales.
  • Evaluate current inventory restrictions and pricing structure – which must be at parity in all distribution channels (PMS, CRO, GDS, and 3rd party Internet) for all non-qualified rates. All distribution channels are “shopped” every time a change is made to ensure there is rate parity across distribution channels
  • Analyze the hotel’s use of inventory restrictions to manage excess demand.
  • Audit room inventory authorization to appropriate distribution channels.
  • Determine if qualified discounts are in place; AAA, AARP, travel industry rates, employee rates, wholesale rates, FIT rates, government rates, local promotional rates, etc. These need to be priced appropriately and proactively made available during periods of low demand (non sell out days).
  • Examine participation in Opaque Travel Sites (Priceline, Site 59, and Hotwire). These sites provide an excellent opportunity for the property to sell distressed inventory (rooms that would otherwise go unsold).
  • Establish demand based rate programs and ensure they are set up correctly to avoid any problems during the selling process.
  • Format and enhance existing information screens in all distribution channels.
  • Make certain that room inventory descriptions are representative of the product, and are consistent in all distribution channels.
  • A detailed forecast model will be used as a tool for setting sell strategies and anticipating need times.
  • Booking pace for both transient and group segments will be tracked and maintained to project demand.
  • Conditions that affect demand (weather, groups, etc.) will be logged.
  • Maximum group ceiling commitments will be determined and enforced when demand permits.
  • A benchmark rate pricing strategy will be implemented - this is the rate the market will bear. It is essential for the product to be priced properly to retain valued customers and attracting new ones.  In a stronger economy and during peak-demand periods, we will ensure that the maximum rate possible under the prevailing market conditions will be attained.

Sales Strategy

  • A detailed forecast model will be used as a tool for setting sell strategies and anticipating need times.
  • Booking pace for both transient and group segments will be tracked and maintained to project demand.
  • Conditions that affect demand (weather, groups, etc.) will be logged.
  • Maximum group ceiling commitments will be determined and enforced when demand permits.

Pricing and Analysis

A benchmark rate pricing strategy will be implemented - this is the rate the market will bear. It is essential for the product to be priced properly to retain valued customers and attracting new ones. In a stronger economy and during peak-demand periods, we will ensure that the maximum rate possible under the prevailing market conditions will be attained.

Forecasting:

  • Weekly Forecast – provides a snapshot of the next two weeks and includes room nights, ADR, and revenue by market segment (group and transient), arrivals and departures. This is an operational tool that will be used for staffing decisions.
  • 30-60-90 Day Forecast – completed by the 28th day of every month and used as basis for financial forecasting.
  • A price sensitivity analysis will be analyzed regularly to determine how well the property is priced.
  • Turndown tracking will be in place for monitoring unsuccessful attempts to book directly with the property.
  • Demand Analysis will be reviewed weekly. Historical demand provides a baseline for forecasting and an understanding of the effects of selling strategies.
  • Distribution Channel Source Report will be completed on a monthly basis and reviewed for trends and anomalies.
  • Daily room nights and ADR actuals will be tracked for all market segments.

Competitive Intelligence

The revenue team will tour/experience competitor hotels and then analyze the position of the property within that competitive set. If necessary, a SWOT analysis will be performed to assure that each person responsible for revenue decisions understands how the property’s strengths and weaknesses affect price points.

  • A consistent competitive shop program will be implemented to gauge where the market is priced on any given day.
  • Competitor shop calls will be reviewed weekly. These include, but are not limited to GDS/CRS shops, toll free numbers and property direct, Expedia, and proprietary web sites.
  • STR Weekly/Monthly Reports will be reviewed.
  • Evaluations of competitor web sites/e-commerce strategies will be completed on a regular basis.