Executives taking part in HSMAI’s Chief Brand Revenue Officer Executive Roundtable in New Orleans, discussed the biggest issues they face and challenges for the industry.
Trends, questions and concerns voiced by the group:
- Sales & revenue management need to focus on the quality of the revenue being generated and ask, "is that really the best and most profitable revenue we can get,"?
- The challenge to fill the demand for self-service revenue managment services that hotels are looking for today.
- Decay of rate in the booking window: Airlines get more dollars as the booking window shortens while hotels tend to drop rate as the booking window closes, which is very concerning.
- Owner/Operators are asking for more from the brand in terms of revenue management, however the brand may not have the manpower to proivde what they are looking for.
- Rising cancellation rates. as high as 30% according to one study.
- How rate parity, which was a cornerstone in the past several years, is now being thrown out the window in 2016.
- Shift in focus for distribution from rate parity to Availability Parity.
- The rising talent expectations for revenue management professionals as the importance of the disipline has increased in hotels.
The session was sponsored by IDeaS, Nor1, and STR. Hotel companies represented at the Roundtable included Four Seasons Hotels & Resorts, Host Hotels & Resorts, Extended Stay Hotels, Morgans Hotel Group, Fairmont Raffles Hotels International, Best Western Hotels & Resorts, Starwood Capital Group, IHG, Carlson Rezidor Hotel Group, Wyndham Destination Network, Hyatt Hotels Corporation, Ashford Hospitality Trust, Starwood Hotels & Resorts Worldwide, Choice Hotels International, Omni Hotels & Resorts, Kimpton Hotels & Resorts, Red Roof Inn, Inc., Preferred Hotels Group, and Loews Hotels.
HSMAI Executive Roundtables provide senior executives access to experts and an opportunity to interact with their peers. HSMAI brings together Chief Marketing Officers, Chief Digital Marketing Officers, Chief Sales Officers, Chief Revenue Officers, and Hotel Management Company Sales & Marketing Executives through the year.
Visit www.hsmaifoundation.org for findings from other recent HSMAI Executive Roundatbles via HSMAI Foundation Leadership Insights.