Revenue Management
• How Hotels Determine Rates
• What Can You Do to Help
Find Per Diem Rates
• Factors that Effect Room
Rates
Forecast Meeting
Critique Meeting
– STaR Report Review
– Past Critique
– ROM Report
Setting Rates
– Restrictions for the next 90 days
– Forecast
– Competition Pricing
What’s a STaR Report?
• Smith Travel Research – Independent research
organization
• Compile market data on selected hotel comp
set, on occupancy, room rate and market
share in a confidential manner
• Evaluate performance relative to defined
competitive set
• View property and market trends by day of
week and seasonality
STaR Reports
• Market Share Reports compare property
occupancy, ADR and RevPAR performance by day
of week, over time and to previous year,
• Occupancy Index (Penetration Index) - measures
hotel’s fair share of the market
• ADR Index (Rate Index) – Represents rate
premium vs. their market competitive set
• RevPAR Index (Yield or Effective Index) Measures hotels premium (over/under) of
revenue share of their Market.
Restrictions – maximizing opportunity
• MSx = you must stay x nights if you arrive on this
date and want this rate
• MXn = you much check out after n nights if you
want this date/rate (think weekend)
• NMQ = no rooms allowed at this rate
• CTA – closed to arrival – if you arrive earlier you
can get this rate but if you arrive today you get a
different answer
• 3/1 = if you arrive this date, you can get the rate
but only if you are not asking for a LOS in the
middle (i.e. 2 nights)
How it Looks –
A
B
C
D
E
F
$275
$250
$225
$200
$150
$99
SUN
MS3
1/2
MX1
MON
MS4
CTA
NMQ
TUE
WED
CTA
3/1
MS3
MS3
NMQ
NMQ
CTA
NMQ
NMQ
NMQ
NMQ
MS2
MS3
NMQ
THR
FRI
MX4
SAT
2/4
MX3
SUN
1/3
MX2
MON (h)
MX1
TUE
NMQ
WED
CTA
CTA
NMQ
What’s a Per Diem Player to do?
• Book as a group with LOI
• Day of Week/Pattern
• In DC, book between conventions or on top of
them for catering only groups
• http://www.dcconvention.com/UpcomingEvents.
aspx
• Book around the Congressional Calendar
http://majorityleader.gov/calendar/113thCongre
ssFirstSession.pdf
•
Are you Ready?
????????
WHO ARE YOU
GOING TO TAKE
????????
THANK YOU!
Mike Gadell
Area Assistant Director of Sales & Marketing
B.F. Saul Tysons Corner Hotels
Courtyard by Marriott Tysons Corner
Crowne Plaza Tysons Corner
Tel: 703-584-2143
Cell: 703-966-8111
Fax: 703-893-2062
mike.gadell@bfsaul.com