Post on 03-Feb-2016
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Revenue Managementfor B&B Owners
Presented by John SpearHotel Drisco, San FranciscoCABBI 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 DriscoStrengths: 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
SeasonalityHolidaysFestivals/events
Day of week patternsShop your competitionConference “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…Make sure that…
Utilize Reservation Channels
PhoneWeb siteTravel Agents
Third-party sites
RATE PARITY!
Rate Strategy Planning CalendarBlackout datesLOS (length of stay) restrictions
Pricing Matrix