Using Customer Data for
Revenue Maximization
Travel Distribution Summit May 27-28, 2014
Andrew Lau
Group Director of Revenue Management and Distribution
Budget
Revenue Management
Revenue Management is the application of disciplined
analytics that predict consumer behaviour at the micromarket level and optimize product availability and price to
maximize revenue growth. The primary aim of Revenue
Management is selling the right product to the right
customer at the right time for the right price and with the
right pack. The essence of this discipline is in
understanding customers' perception of product value and
accurately aligning product prices, placement and
availability with each customer segment.
Cross, R. (1997) Revenue Management: Hard-Core Tactics for Market Domination. New York, NY:
Broadway Books.
How to ensure we are right?
Data
Information to support
Data
Where we can find the data?
• In most cases, your Property Management
System (PMS) stored the customer data could
provide the required data
• Unfortunately standard reports might not be
sufficient
Resources Requirement
• If resource is available,
o
o
Business Intelligence Solution
Outsource
• If not …..
Case Study
•
•
•
•
Opera PMS
Vision
MS Excel
MS Access
Keeps the daily detail activities of each inhouse guest
Excel limitation: –
Excel XP : 65,536 rows, 256 columns
Excel 10 : 1,048,576 rows, 16,384 columns
100 rooms hotel, 80% occupancy,
50% double occupancy, ALOS 2 nights :
100 x 80% x 365 x 1.5 x 3 = 131,400 records
Extract data from PMS
• Vision works as an add-on in
MS Excel
• Extract data from PMS directly
• Create macros in MS Excel to
simplify repeated tasks
PMS Data
• Stay history & future reservations for
o
o
o
o
Checked out
In-house / due out
Reserved
Cancelled / no shows
• Group blocks
o
o
o
Definite
Tentative / inquiry
Allotment
PMS Data
• Room status
o
o
Out of order
Out of service
PMS Data
• Based on PMS configuration, fields include:
o
o
o
o
o
o
o
o
o
o
Reservation ID
Status
Arrival Date
Departure Date
Creation Date
Company ID
Travel Agent ID
Market Code
Source Code
VIP Code
o
o
o
o
o
o
o
o
o
o
Nationality
Country
Origin Code
No of Rooms
Room Number
Room Type
Rate Type Code
Room Revenue
F&B Revenue
Total Revenue
o
o
o
o
o
o
o
o
o
o
Rate Code
Rate Amount
Discount
Block Code
Payment
Membership
Adults / Children
Discount
Specials Requests
……
MS Access
• Create databases in MS Access to store the
data extracted from PMS via Vision
• Create other databases for code definitions
MS Access
• Create queries in MS Access to filter and
consolidate the data
• Link to other tables to obtain other information
MS Access
• Create Macros to simplify work flow
o
o
o
Import / export MS Excel files
Calculate
Print
Daily Work Flow
Upload the MS
Excel file to MS
Access for storage
Run Vision to extract
data and save in a
designated location
or export
consolidated
data back to
MS Excel for
further
processing
Run MS Access
queries to generate
reports
Reports
• Create Reports in MS Access
o
o
Consolidated reports
Comparison reports
• Export report data from MS Access and pick up
by MS Excel
o
o
Graphical reports
Interactive reports
Report Contents
• Level
o
o
Total Hotel
Company / Profile
• Dimensions
o
o
By Market Segment
By Room Type

Paid vs Stayed
 Upgrade reason
o
o
By Channel
By Geographic
• Values
o
o
o
o
o
o
o
Room Nights
Guest Nights
Rooms Revenue
F&B Revenue
Other Revenue
Arrivals
Cancellation / no show
• Detail
Monthly
o Day of week
o
Use of Customer Data
• Revenue Management practices
o
Business on-the-book and pick up
Business OTB & Pick up
• On book and daily pickup
o
o
o
o
o
By Market Segment
By Distribution Channel
By Room Type
By Rate Code
By Company / Travel Agent / Block
• Reservations Pace
Use of Customer Data
• Revenue Management practices
o
o
Business on-the-book and pick up
Forecasting
Forecast
• Extract and keep the data on a daily basis to
obtain the trend and pace
Forecast
Current
HistoricalPick Up
Trend
On Book
Forecasting
• Estimate a forecast base on current on book
plus historical pick up pace / current trend
Segmentation Forecast
Pick Up
Wholesales
On Book
Pick Up
Corporate
On Book
Pick Up
BAR
On Book
Daily Segmentation Forecast
Pick Up
Pick Up
On Book
On Book
Pick Up
Pick Up
On Book
On Book
Pick Up
Pick Up
On Book
On Book
15 Dec
16 Dec
Wholesales
Corporate
BAR
Daily Room Type Forecast
Pick Up
Pick Up
On Book
On Book
Pick Up
Pick Up
On Book
On Book
Pick Up
Pick Up
On Book
On Book
15 Dec
16 Dec
Suite
Club
Rooms
Use of Customer Data
• Revenue Management practices
o
o
o
Business on-the-book and pick up
Forecasting
Hotel performance
Hotel performance
• Hotel performance in various dimensions
o
o
o
o
Market segment
Channel
Room type (paid / stayed)
Membership
Use of Customer Data
• Revenue Management practices
o
o
o
Business on-the-book and pick up
Forecasting
Hotel performance
• Marketing Strategies formation
o
Product and service redesign
Product / Service Redesign
• Customers’ preferences
o
o
Bed type requirement
Smoking vs non-smoking
• Rate code materialization
o
Benefits included package
• Country of resident / Nationality
Use of Customer Data
• Revenue Management practices
o
o
o
Business on-the-book and pick up
Forecasting
Hotel performance
• Marketing Strategies formation
o
o
Product and service redesign
Distribution strategy forming
Distribution Strategy
• Booking channel performance breakdown
o
o
o
By market segment
By country of guest origin
By room type
Use of Customer Data
• Revenue Management practices
o
o
o
Business on-the-book and pick up
Forecasting
Hotel performance
• Marketing Strategies formation
o
o
o
Product and service redesign
Distribution strategy forming
Sales administration
Sales Administration
• Company / Travel Agent Performance in various
dimensions
o
o
o
o
o
Room nights
Rooms Revenue (Average Daily Rate)
Food & Beverage Spent (Average F&B Spent)
Other Expenses
How it’s business level compares to previous
year
Corporate Account Contract
• Other Areas to review :
o
o
o
o
Demand by room type
Number of upgrades
Loyalty programme / FFP membership
Booking channels
Tailor-make the contract offer
Account Production
• Group multiple profiles with an unique ID
6045912
Room Night
Room Rev
F&B Rev
Other Rev
Jan
9
4,843
258
1,709
Feb
23
9,188
308
1,285
Mar
2
780
17
203
Apr
3
1,620
113
355
• Add second level filter such as
o
o
o
Buying room type
Booking channel
Loyalty programme membership
May
3
1,220
133
622
Jun
0
0
0
0
Sales Administration
• Sales Manager Portfolio
o
o
o
Total Room Nights
Rooms Revenue, F&B Revenue & Total Revenue
Top Accounts (Increase / Decrease)
Information Checking
• Reservations Errors
o
o
o
Complimentary Rooms with Rooms Revenue
Corporate / Wholesale Rate without Profile linked
Missing or invalid codes used
Benefits of Using Guest Data
•
•
•
•
Free of charge
Primary data
Relevant to your business
Up-to-date
Reminder
Thank You