Revenue management for hotel owners

Many owners still see their hotel's revenue once a month, in a pack that leads with occupancy. By then the month is gone.

Revenue management decides, room night by room night, which guest to accept, at what price and through which channel. The owner carries the asset. The owner should be able to question those decisions.

So I've written a short course for owners and asset managers. 25 chapters, 63 slides, free to download. Each chapter starts with a question an owner actually asks. Then the short answer, the formula, the worked numbers, what to ask your team and the red flags.

Inside:
· The scoreboard. Why RevPAR can rise while GOPPAR falls.
· Fair share. Our specimen hotel fills its share of the market and sells 14% cheaper than its comp set. That gap is $3.84m of rooms revenue a year.
· Pickup, unconstraining and forecast accuracy. A sold-out night hides the demand you turned away.
· The BAR ladder, price tests, rate parity and reputation as pricing power.
· Protection, bid prices and overbooking.
· Group displacement, night by night.
· What each channel really costs. On the specimen, winning bookings costs $1.25m a year.
· Resorts, meal plans and length-of-stay rules.
· Budget variance split into price, volume and joint.
· The five numbers to ask for every month.

On a 500-key specimen city hotel, the prize comes to $1.63m a year, or 20.6% of EBITDA.

The workbook behind every number is in the first comment. Put in your own figures and it recalculates for your hotel.

If you own a hotel or manage one for an owner, take one chapter to your next revenue meeting.