Friday September 13th, 2013 - 12:07PM
McLEAN, VA—The Hospitality Sales and Marketing Association International (HSMAI) released a study on “Nine Ways to Pull More Revenue Through to Your Bottom Line,” a white paper commissioned in partnership with Infor, a hospitality enterprise software company.
In the study, Trevor Stuart-Hill, president of Revenue Matters, presents solutions designed to help hotel managers increase profitability in a climate of rising costs.
“Escalating costs are the greatest factor limiting bottom-line performance for many properties around the country,” stated Stuart-Hill “Hotels and resorts are facing enough demand today that they should be able to turn some impressive profits if they are able to take creative action to improve profitability.”
“While the industry is now seeing revenue and occupancy growth outpace pre-recession levels, net income has stayed flat, dragged down by increasing costs,” stated Robert A. Gilbert, president/CEO of HSMAI. “This white paper suggests a number of ways hotel managers can find new ways to generate increased revenue and profit.”
Stuart-Hill’s strategies outline steps hotel managers can employ to increase net revenue in this current cost climate. These include: Focus on forecast performance; Engage associates; Optimize market segmentation; Match staffing levels to demand;Think of inventory as an asset versus a commodity; Understand ROI of marketing spend; Enhance guest experience while generating additional profit; Review charges to ensure they do not make it to the guest folio and; Proactively manage assets to minimize both downtime and guest satisfaction issues.
“If you don’t already see this happening in your organization, now is the time to take the action needed to capitalize on the full profit potential of the recovery,” Stuart-Hill added. “Look beyond the things you have done in the past, and think differently about what opportunities lay ahead.”