revenue management services to fit your needs
Whether your organization is looking for a little help or a lot of help, Buckhiester Management is poised to address your revenue management needs. If you require a temporary measure, we can place a qualified interim revenue manager in either an on-site or remote capacity. If you’re looking for someone to act as your revenue manager, Buckhiester offers individual and cluster yield management solutions.
Remote and/or On-property revenue management needs often fall into two major categories:
- The need to examine the current revenue management effort being made and immediately devise and deploy tactics to better optimize demand in the short-term.
- The need to analyze and evaluate opportunities with a view to establishing sound medium & longer-term tactics and strategies to enhance market penetration, improve positioning and drive RevPAR. Below is an overview of our interim and remote revenue management services.
For tactical revenue management services, we provide the following:
- In depth review of the current RM environment – revenue goals, tools, distribution, positioning
- Prepare for and lead the weekly RM meetings
- Monitor pick-up and respond to demand trends
- Data entry and interpretation of stand-alone Demand Forecast model (supplied by Buckhiester Management)
- Generate weekly occupancy 14-day forecast (operations orientation) and a monthly 30/60/90-day top line rooms revenue forecast (financial orientation)
- Set sell strategies & status the PMS, CRS, GDS, web-booking platforms, OTA’s
- Interpret 3rd party reports including STAR, rate shopping reports, GDS production reports, other market intelligence, etc.
- Liaise with brand and/or management company representatives to optimize resources, distribution channels and brand/corporate-driven promotions and initiatives
- Establish/manage relationships with OTA’s, private or member-only sites, and flash sales sites as required
- Liaise with online marketing person and/or designated company to ensure revenue management tactics/strategies are aligned with digital marketing and social media initiatives
- Recommend/manage GDS marketing opportunities (online ads, promo spots)
- Monitor demand influencers in the marketplace
- Update ownership and/or management regularly on tactical/strategic initiatives
- Maintain an action item list with regular updates and provide to the General Manager and/or ownership and/or brand
For strategic revenue and yield management services, we provide the following:
Using a proven analytical approach involving our trademarked business process REVRoadMap®, areas of review include the following 6 key revenue management program components:
1. Product Alignment – areas of review include product alignment to customer demand, assessment of inventory stratification opportunities, up-sell programs, segment growth potential, product utilization strategies and optimization of inventory categories. RevPAR by room type is also monitored and any necessary re-stratification undertaken.
2. Competitive Benchmarking – areas of review include marketplace dynamics and business trends, competitive set validation and positioning, product analysis, a quantitative approach to quality vs. rate positioning and a search for pricing anomalies. A review of third party, regional and/or local market intelligence reports continues to be undertaken. Online competitive evaluations continue to be conducted on all primary competitors in the immediate geographic region in order to assess and optimize competitor market intelligence. Consumer benchmarking is also undertaken using Buckhiester’s proprietary “value index”.
3. Strategic Pricing – areas of review include index balance, index trends over time, price positioning and segmentation, rate integrity issues, rate parity issues, reference pricing, demand tactics, use of fences, rate response analysis, segment contribution, and a review of individual segment rate and inventory strategies. The vertical and horizontal pricing structure is also reviewed to ensure optimal pricing tiers.
4. Demand Forecasting – areas of review include the three distinct forecasting methodologies (occupancy, revenue and demand forecasting)and a review of the process for setting selling strategies based on forecasts; forecast accuracy analysis; and disaggregated forecast procedures and decision support tools utilized. Revenue management related PMS & CRS functionality and use continues to be explored to streamline forecasting practices. The Buckhiester Demand Forecast model is utilized to monitor segment booking pace, unconstrained demand by day and excess demand opportunities.
5. Business Mix Manipulation – areas of review include quantifying RevPAR performance, index balance over time, transient baseline management (if applicable), use of displacement analysis, market share forecasting, leveraging segment potential, booking pace analysis, volume capture by day of week, day of week strategies by market segment and group blocks management.
6. Distribution Management – areas of review include PMS, CRS, GDS, IDS product positioning, pricing and inventory management; any available customer intelligence/reviews; online and offline product offerings; proprietary website traffic data; product descriptions, inventory stratification, use of break even analysis for pricing initiatives, use of last room availability parameters, effort vs. impact relative to daily distribution tasks, statusing options being utilized, and level of expertise in duration optimization (pattern or stay control management). A review of third party market intelligence reports continues to be undertaken as well as social media metrics as available. Revenue management related functionality and use in the PMS, CRS, GDS, RMS & web booking engine technology is also optimized. Ongoing discussions with the brand and/or management company will also be completed as required.
Outcomes for Tactical or Strategic Services: Increased market share in a balanced manner (i.e. rate and occupancy indices are reasonably balanced and mutually rewarded); improved RevPAR; smooth, well defined revenue and yield management processes and practices that provide a sustainable framework going forward.
Estimated Timeframe, Hours, and Fees: We estimate 15 hours a week on average working directly and indirectly on behalf of the hotel’s revenue management program. We appreciate that the first 2-3 weeks require additional time commitment to establish a consistent routine. We require a minimum 6-month commitment that can thereafter be terminated by either party with 30-days notice.
Requirements for Remote Services:
- Remote access to the PMS and RMS (assumes 2-way interface with CRS & web-booking engine).
- Login access to the CRS, web-booking engine & OTA sites (assumes 2-way interface with GDS)
- Login access to the monthly and weekly STAR reports and access to any other market intelligence reports that the brand and/or hotel provide (i.e. reputation management report, pace, GDS production, etc.)
- Subscription to a rate shopping tool
- Login access to other products like Lanyon or similar as required
- A key contact at the hotel that can coordinate our remote revenue management efforts with the hotel operation.
An initial familiarization site visit to the hotel will take place at the beginning of the contract to review the product, the marketplace and the competitive set. Travel expenses are the responsibility of the client.