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Revenue Management
for B&B Owners
Presented by John Spear
Hotel Drisco, San Francisco
CABBI 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
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Strengths
Weaknesses
Opportunities
Threats
SWOT for Hotel Drisco
Strengths: Upscale location, historic and wellmaintained 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
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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
Seasonality
Holidays
Festivals/events
Day of week patterns
Shop your competition
Conference “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
Phone
Web site
Travel Agents
Third-party sites
RATE PARITY!
Rate Strategy Planning Calendar
Blackout dates
LOS (length of stay)
restrictions
Pricing Matrix
Thank you!
John Spear: [email protected]