Presentation on theme: "Revenue Management for B&B Owners Presented by John Spear Hotel Drisco, San Francisco CABBI InnSpire Conference January 24, 2012."— Presentation transcript:
Revenue Management for B&B Owners Presented by John Spear Hotel Drisco, San Francisco CABBI InnSpire Conference January 24, 2012
Caveat Emptor I’m not as funny as Vikram from the Google Analytics session. I don’t use any Star Trek references in my presentation. I’m not trying to raise your blood pressure on purpose, but if you fear numbers be warned. Anonymous request for “the kindergarten version.”
Who are we today? How many rooms in your Inn? How often do you change your room rates? How do you determine your room rates? Do you practice rate parity? How do you discount?
Understand Your Product: SWOT Strengths Weaknesses Opportunities Threats
SWOT for Hotel Drisco Strengths: Upscale location, historic and well- maintained facility, superb service philosophy and execution, upscale amenities, constant capital infusion, #1-2 on TripAdvisor in San Francisco. Weaknesses: Remote location, 20% “last sell” inventory, thin walls, no parking structure or lot, no individually-controlled heat, no A/C. Opportunities: Maintain #1 on TripAdvisor, soundproof rooms, install individual HVAC. Threats: Opening of new comp set hotel, earthquake.
Understand Your Competition’s Product: SWOT Strengths Weaknesses Opportunities Threats
Price Value Assessment (PVA) Objective comparison of your product (and the perception of your product) to your competition’s. Perceived value
Analyze Occupancy Data To Determine Demand Drivers Seasonality Holidays Festivals/events Day of week patterns Shop your competition Conference “compression”
What does a rented room cost you (incremental cost of goods sold)? Labor? Amenities? Laundry? Wear & tear? Energy? Mortgage? Other (quality of life?)
Develop Rate Tiers Make sure that…
Utilize Reservation Channels Phone Web site Travel Agents Third-party sites RATE PARITY!
Rate Strategy Planning Calendar Blackout dates LOS (length of stay) restrictions
Thank you! John Spear: firstname.lastname@example.org@hoteldrisco.com