Is “Brand Envy and Pride” costing you a lot of money?

Do you really understand where your hotel ranks with Smith Travel Research and more

importantly with your guest?

Hotel owners and GM’s should take pride in their hotels. However, we’re amazed at how many “Economy Hotels” try to price themselves as a “Midscale Hotel” or how “Midscale Hotel” owners thinks their hotel should get the same ADR as a Full Service hotel. We have to talk logic.

Often owners or GM’s forget how the guests see things, and how a guest shops for a hotel.

This actually gets worse if the hotel is performing marginally well.

If those owners or managers could make a little profit, positioning themselves alongside higher ranked brands and only run 60% occupancy for the month, many of them would.

They very easily forget that almost half of their hotel rooms are empty each night.

Hard to believe; but it's the pride thing again

www.heritage-consulting-llc.com

The Wrong Focus When a manager or owner sees a reservation from an OTA they think net rate . Which is great, GM’s and owners should be thinking about the bottom line, however,with a reservation from any other source, they don’t automatically subtract the built in cost , or consider the fact that they wouldn't have sold that room to start with if It hadn’t come from one of these sources. (504) 939-3390

Lots of GM’s would prefer to not sell the room if they're not getting the rate that their Owner expects.

I cant make money with these discounts!I should be getting the same rates as…

It never ceases to amaze me how often I hear this from GM’s or hotel owners. For example, I recently received a complaint from a GM

that he had just received lots of reservations for $51.60.

I knew no such rate had been loaded or setup via a discounted promotion, so I asked to be sent the information. What I actually

saw was a rate of $70.00. Here the GM figured out how much commission he had to pay the brand, GDS and the OTA.

That’s a rate of $51.60. I can’t make any money . It’s too low. …

Or is it?

Real life example.

The focus needs to be on the RevPAR produced and not on ADR. Take this flash report, for

example, even with his $51.60 rate. That he thinks is way too low. The ones he thinks he is

not making any money with. He yielded the RevPAR of $61.12 versus $51.51 for the month. That's an increase of $9.61 per room and if you look at his RevPAR year-to-date it was $42.05. Compared to todays RevPAR that is increase of $19.07! So how did he make more money with a

lower net rate?

“He made more money”By Being

Properly Positioned!

In comparison to his comp set!

Not jacking up the rate when occupancy hit 70%

And last but not least “Keeping All Booking Channels Open”

Some truths to remember

The guest is the only one who books a room at your hotel, with out expecting a piece of the

pie. Everyone else expects to get paid.Whether its a website booking, a travel agent

booking or one of the many OTA’s.GDS Fees are a fact of life in this business.

Even a walk in guest has a fee attached to their reservation.

Want Results like this?

So it comes down to a question. which would rather have a higher ADR and a low bank account? Or a more realistic ADR

and a fat bank account. In all seriousness, unless your occupancy is over 98%. You need to stop thinking I’m losing money here. Instead you should think I just covered some of

my operating cost or my flow though just go a little better!

Heritage Consulting & JYI Hospitality can do this for your hotel as well.

Remember you don’t take ADR to the bank!

(504) 939-3390

JYI Hospitality & Heritage Consulting

www.heritage-consulting-llc.com

www.jyihospitality.com

Billy@heritage-h-c.com(504) 939-3390