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International Conference on Travel Technology, India
9th June , 2013The Leela, Kovalam
www.lemontreehotels.com
• 22 hotels, 2600 owned and operated rooms in 14 cities
• Ranked in the Top 50 Great Places to Work 2012 among large companies (>1000 employees)
• 16 hotels have been awarded the TripAdvisor Certificate of Excellence 2013
• Outlook Traveller Readers Choice Award 2012: Best Mid-range Hotel Chain in India
• Lonely Planet Travel Awards 2013: Amongst the top two brands of Best Hotel For Value
• National Award, Government of India - Ministry of Social Justice and Empowerment: Best Employer (2011) and Barrier-free Environment for Persons with Disabilities (2012)
Revenue Management Strategies
Revenue Management practices generates over $100 M for our hotels every year.
Revenue Management has contributed millions to the bottom line and has educated our people to manage their businesses more effectively.
Bill Marriott Jr.: Chairman, Marriott Hotels
RM Is Critical To Bottom Line Success
Selling the right room to the right customer at the right time through the right channel for the highest possible price.
• Who is the right customer?
• What is the right time?
• What is the right channel?
• How do you decide the highest possible price?
What Is RM?
Hotel Challenges Today
• Low occupancy rate
• Many intermedearies between the hotel and the corporate customer
• Sinking room rates, which lead to lower revenue per booking
• Understand your market/customerUnderstand your market/customer
• Define your product positioningDefine your product positioning
• Drive profitable distributionDrive profitable distribution
• Pursue REVPAR, not ARRPursue REVPAR, not ARR
• Drive collaborationDrive collaboration
RM Today: Strategic Not Tactical
Market
Unqualified Customer
Prospective Customer
Customer
Satisfied Customer
Repeat Customer
Sell
Fulfill
Care
Customer Is King
Value to the customer
Valu
e t
o t
he e
nte
rpri
se
2010 2011
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
25% 47% 68% 66% 70% 73% 48% 36% 56% 71% 79% 96% 100% 34%
43% 37% 32% 58% 95% 92% 80% 34% 59% 35% 40% 69% 54% 31%
68% 54% 60% 62% 100% 100% 68% 29% 41% 56% 54% 69% 93% 74%
Illustrative Example for January 26
2625 262527 24
Understand Market Behavior
PS
TT
PP
TT
S
S
Normal
Holidayimpact
Note: The actual impact of Holiday falling on a weekdays depends on consumer behaviour. If guests travel usually for two days in a city, a holiday on Tuesday will
effect Monday and a holiday on Wednesday will effect Tuesday / Thursday. Festivals like Diwali can affect entire weeks.
Product Positioning
Location
Brand/Flag
Services
Facilities/Amenities
Price
Static
Dynamic
Determinant(can’t be changed)
Static (can be changed)
Incremental
Filter/Stimulant
Competitive pricing
Airline pricing
Demand conditions
Distribution Strategy
• Maintain rate parityMaintain rate parity
• Dynamic pricing and packagingDynamic pricing and packaging
• Explore new distribution avenues Explore new distribution avenues
Target: REVPAR OptimizationD
em
an
dD
em
an
d
Focus: OccupancyFocus: Occupancy
Focus: ARRFocus: ARR
Revenue Management Intersects Sales, Marketing, CRM and Ops.
RM
Sales
Ops.
Mktg.& CRM
• Leverage your brand Leverage your brand
• Invest in effective technologyInvest in effective technology
• Build successful partner relationshipsBuild successful partner relationships
Key Drivers: RM Success
