In recent years, revenue management has become the lynchpin of any successful hotel business operating in the Middle East. Intense interest in revenue management has been triggered by the maturation of the region’s hospitality industry and the increasingly competitive marketplace. For many years, the Middle East was considered to be a small, fast-growing market fuelled by strong demand, under supply, rising rates and high occupancy — but those days have gone.Rapid development and the emergence of major international hotel operators in all of the sectors have created a very different business environment. If the rules of the game have changed then hoteliers need to implement new disciplines and methodologies to retain their market share.

Therefore, the need for robust revenue management strategies is greater than ever before. “The hospitality industry in the Middle East has evolved tremendously after the downturn in the economy,” explains ResNet World managing director, Saahil Mehta. “Prior to the downturn, several hotels were under construction in anticipation of the growth in both business and leisure tourism in the region. “With the downturn we witnessed a combination of a reduction in demand, lower ADR, and lower occupancy levels, resulting in a decrease in revenue. With this in mind, it is no surprise that revenue management has become a top priority. The truth of the matter is that if you ignore it, you will slowly start to trail behind.”

TIME FOR CHANGE
Although revenue management is now being taken more seriously by hoteliers across the region, the discipline is still in its infancy. By all accounts, only a handful of hotel operators have successfully managed to implement a comprehensive revenue management strategy that has been fully embraced in all areas of the organisation.

In reality, most hotels are midway through a process of change whereby the accountability and the principles Correctly positioning and integrating revenue management into the organisational structure is the key to success. Revenue management is the glue that binds departments together and success is predicated on sales, reservations and marketing all appreciating its value. “If a hotel company is starting on the revenue management journey, they should be aware that it is not a quick fi x to make extra revenues during high demand times,” explains Jumeirah’s group director for revenue management, Stefan Wolf. “Rather it’s a transformation of a company to improve its long-term profi tability. If revenue management is already part of the organisation, its function needs to be truly understood and supported to be able to have a meaningful impact.” In short, for a strategy to work, the entire organisation must be behind it. Whilst this may be easily achievable in individual properties, panregional organisations have a mammoth task ahead of them.

The implementation of a new culture is by far the greatest challenge for operators who are looking to introduce robust revenue management procedures.

“A great revenue management strategy needs to be built on a firm foundation,” explains IDeaS senioraccount manager, Guy Barnes. “A strong culture must be in place that secures buy-in from all of the departments across the organisation — and do so vertically from the CEO down to the housekeeper.”

NEW TECHNOLOGY
By combining historical data like reservations, booking patterns and rate structures with future predictions of economy, seasonal data and demand, revenue management systems offer an opportunity to take a fresh look a hotel’s productivity.

In the past, a hotel’s performance and trend data has been viewed undynamically, making it hard to fully interrogate the relationship between different data sets. In effect, managers were forced to build a picture of an organisation’s performance from data produced departmentally and identify key correlations by hand.

Technology systems like Opera Revenue Management System (ORMS) by Micros-Fidelio have transformed hotel data analysis and forecasting. Within a year, ORMS can increase room revenue by 4-7% by instantly identifying ineffi ciencies and providing remedies – with some surprising results. “We recently had a customer who started analysing their rate structures and realised that they were never actually selling their deluxe rooms at the indicated price!” says Micros-Fidelio’s Oliver Menzel. “Their deluxe rooms were mainly occupied by guests paying for a standard room, who had been upgraded free of charge. Such a discovery is
vital, as it will allow the management to review both their selling strategy and pricing on deluxe rooms.”

Essentially, a successful revenue management strategy is characterised by how dynamically an organisation can interact and interpret market data from four sources: market segmentation, forecasting, pricing and inventory allocation. “What makes a uccessful strategy is how artistically one interplays with these four components to optimise the potential revenue,” explains Ròya International’s hospitality consultant, Turab Saleem.

“For example, every month of the year has its own dynamics and each day of the month also needs to be looked at separately. You then have to apply your in-depth market understanding. If you can effi ciently trace economic metrics, airline performance, currency fl uctuation, performance of competitive destinations and understanding of competition, then you can effectively plan your revenue management policies to maximise the potential revenue.”

Of course, automated systems cannot replace real-life business instinct, but they can identify potential opportunities and ensure that the relevant data is submitted to the right person at the right time. This is the philosophy behind IDeaS own revenue management solution, which delivers pricing, forecasting and optimisation services via software as a service (SaaS). “Accurate demand forecasting should provide sales and marketing with a specifi c understanding of when and where there is business
need,” says Barnes. “IDeaS v5i solution can suggest when to advertise promotional rates or even alert you to any signifi cant changes taking place as they happen.”

THE HUMAN TOUCH
Behind all technology is a good manager. Technological solutions are simply tools, powerful though they may be, to inform the decision making process of a dedicated and accountable revenue manager. Their business acumen and ability to drive proactive change throughout the organisation is integral to the success of any strategy. Testament to this idea is the revenue management strategy of City Seasons Group, where revenue mangers are positioned “on the ground” in individual properties in order to foster better understanding of thediscipline within the organisation and facilitate the overarching strategy of the group.

“I believe that our revenue managers must be as close to the market as possible because dependable market knowledge is now more essential than ever before,” explains City Seasons Group managing director, Thomas Tapken. “They must be aware of shifts in booking patterns and fully understand the competition on a daily basis.” “But it’s also about educating the wider team and getting everybody actively involved in revenue management practices. Sales, marketing, communications and the rooms division manager all need to work together to create targeted measurable campaigns which are appropriate to the business needs of the some way off the ideal scenario, but we will get there in time.”

The need for talented managers behind the technology and good corporate awareness of the discipline has not escaped the attention of the solution providers. Most package consultancy and training services into their software products to avoid hotels investing in a one-time system implementation with the unfounded expectation that nothing further will be required. “I believe that it is important to focus on people and behaviours first, followed by the underlying processes,” explains Total Revenue Solutions director Jennifer Keen. “My number one piece of advice is always to foster engagement from your team from the very beginning,
otherwise you could be in for a very long and uphill battle! “It is critical that the revenue management team can drive action, not
just analysis, and have the ability to turn data into recommendations.

Also, the revenue management strategy needs to be given time — it needs to be a long-term strategy supported by short-term tactics. It would be hard to achieve all of this without an engaged and motivated team.”

A PROFITABLE FUTURE
The emergence of revenue management in the Middle East has been well-timed. The discipline has triumphed as the right solution able to respond to recent changes in the industry. At a time when hoteliers need to maximise their revenues and improve their effi ciency, revenue management is able to deliver concrete results.

Momentum is likely to continue as revenue management fi rmly roots itself in the region’s business culture and, as the discipline s adopted into other departments, hoteliers will continue to see some impressive results in the long-term. “Traditionally, revenue management has focused on rooms because they generate the majority of a hotel’s revenue,” explains Ròya International’s
Saleem. “In most cases, there has been relatively little focus on other areas of the hotel business, including areas such as banqueting, restaurants, spas and health clubs.“But, these areas are very interdependent because success in one area can increase demand in another. It is therefore essential to apply revenue management techniques to all of these revenue generating areas in order to maximise the potential revenue in the long-term.”

The revenue management revolution has only just begun and its full capability is yet to be realised. As the discipline creeps into other hotel departments, it will gain momentum and likely establish itself as a fundamental business standard. If hoteliers can “stick to their guns” and adhere to their yield management strategies in the long-term, then the required cultural changes and interdepartmental buy-in will follow. “The most important thing is to see it through” says Jumeirah’s Wolf. “Once a strategy has been identified, agreed and implemented, there might be initial adverse market reactions, but if it is the right strategy for your hotel, and if it has buy-in from all the relevant stakeholders, then the results of this strategy will eventually speak for themselves.”

Social media works best when it is closely aligned to the culture and values of a hotel. There’s no use forcing the open culture of social media on a hotel where the guests will not embrace it. Social media should be a service, so selecting platforms to participate in must involve thinking through how your social media activity will provide better service. Therefore, rather than each hotel trying to participate in the same list of social media websites, the selection process outlined here will help you choose the platform to suit your property and your guests. We must approach social media with the end goal in mind. Decide on objectives, and from there, pick tactics.

RETURN ON OBJECTIVES IS THE NEW ROI

New media marketing channels differ so much that it is nearly impossible to do a side-by-side comparison on effectiveness. At best, we create a different set of success measurements for each platform. That’s fine, but it makes highlevel marketing strategy decisions much harder. What services and websites are worth investing your time and money on? To assist you with these decisions, I encourage you to evaluate ‘Return On Objectives’ (ROO) instead of Return on Investment (ROI). For example, if service is a top strategic focus for you, it is possible to quickly compare the diverse range of social networks — and to see which ones are allowing you to serve your guests in the best possible way. So, what social media objectives are you measuring for?

Once you have identifi ed your objectives, you can match them to one or more of the following social networking options that are most popular today: TripAdvisor (peer review sites) Facebook (social networking) Blogging (information sharing) Twitter (microblogging) YouTube (video sharing sites) Photobucket (photo sharing sites) Foursquare (location-based site) Meetup.com (events) Below is a review of the pros and cons of each site…

MANAGING YOUR TIME IN SOCIAL MEDIA
We’ve reviewed some of the major social networking options. So how do you allocate your time among a
myriad of social media options? It’s simple — follow the data! Take a careful look at your metrics. What’s working? What’s not? As I said at the beginning of this article, you will probably have to use Return on Objectives to do the apples-to-oranges comparison. But in the end, numbers don’t lie. If a trendy new site isn’t producing the results you’re looking for, then stop spending so much time on it.

Some networks naturally consume more time than others. Writing a blog post takes longer than posting a tweet. Producing a You-Tube video will take longer than moderating a group on a website. But if the additional time investment gives you higher overall ROI, then it’s worth it. It comes back to Pareto’s 80/20
rule — find the select few social media activities that produce tangible results for you, and try to focus
your time there. Since this is highly variable on your property, follow these action steps to create a unique plan for you:
1. Develop a new set of objectivesbased metrics for measuring social media activity in a way that is relevant to your hotel.
2. Compare past statistics with your new metrics. (If you have not been gathering suffi cient data, then take a week or two to do that).
3. Use insights from your comparison to develop a list of social media top performers – for you.
4. Create a personalised social media management routine based on this data.

MISTAKE 1: NO STRATEGIC PURPOSE FOR TAKING PART

Whenever a new marketing channel opens up online, it’s easy to feel a little unsure on the approach you should take and how you shouldparticipate. The past few years have seen a lot of buzz around new tools such as Facebook and Twitter, and many businesses have jumped in without thinking about their participation strategically.When it comes to social media, strategic thinking helps with deciding the platforms and interaction procedures that can further your organisation’s larger objectives. Without this type of guidance, it’s easy to get lost and lose direction.Commitment to the programme might fade when business results are not being realised. Overcome this mistake by asking yourself a question: “What are our big objectives right now? How can social media help us with these?” Best practice example: Starwood Hotels http://twitter.com/StarwoodBuzz

MISTAKE 2: NOT LISTENING

Social media is not just about broadcasting. Entering a social network and only pumping out marketing messages will cause you to be ignored at best, and could ultimately lead to you alienating your fans and causing negative word-of-mouth. Before starting any social media programme, spend a little bit of time listening to what people are already saying about you and your industry. Maybe they’re not specifi cally mentioning your brand name, but it’s very likely they’re talking about things that directly affect you: topics such as your competitors, your city, your area, and your industry niche are all important to monitor. When you spend some time getting a feel for online sentiment in these areas, it provides you with a better level of insight and the ability to create a more engaging social media campaign. Best practice example: Hyatt Concierge http://twitter.com/HyattConcierge

MISTAKE 3: NOT INVOLVING PEOPLE ON THE FRONT LINES

Ideally, social media interaction will not be exclusively handled by one person on your team. It is much better for you to get as many people involved as possible. This does not mean having everyone update Facebook, for example. It does mean setting up policies and systems that enable your staff to submit story ideas and interesting things they come across in their daily work. Having “ears on the ground” will provide you with a wealth of information that makes your social media presence far richer. It’s impossible for one person sitting in an office to be completely aware of everything that goes on around the hotel and in the surrounding community. To overcome this challenge, enlist your staff. Best practice example: Hotel Max http://twitter.com/hotel_max

MISTAKE 4: NOT STAYING TRUE TO YOUR ORGANISATIONAL CULTURE

People should be able to get a sense of what you are like as a company when interacting with you in social media, so let your personality come through a bit. Your offl ine experience must be consistent with your online presence. This means everything from graphic design to social media postings and updates that resonate with your target audience. This consistency is very important for how your brand is perceived. Think through your brand positioning, and what that means in terms of how you will take part in social media. Best practice example: Joie de Vivre Hotels http://twitter.com/JDVHotels

MISTAKE 5: THINKING IT’S ALL ABOUT YOU

As much as you may like to think it, not everyone is going to want to follow you online just because you’re special. The reality is that very few people just go into social media to follow every hotel they see. There needs to be something remarkable about your product if you want to build a loyal online fan base. You must publish more than just special offers and promotions to build an engaged audience. Maybe you want to talk about lifestyle issues or other things that are important to your guests. These messages need to be consistent with your organisation and target market. Best practice example: RSHotel http://twitter.com/RSHotel You must be aware of these issues, but don’t let them scare you off. Social media is a big trend and hotels using this have a distinct advantage over their competitors. Learn more in our report “10 Reasons You Cannot Ignore Social Media”: www.resnetworldarticle.com

The PCI-DSS exists to safeguard customers from fraud and information theft involving online transactions. The rigorous standards dictate 12 specific requirements ranging from firewall configurations to data storage. These standards were founded in 2004 by major credit card companies including Visa, Discover, MasterCard and American Express.

With the certification, Genares and gReserve offer thousands of hotels and their customers a secure CRS with seamless GDS and PMS connectivity. With the percentage of reservations booked online growing every day, Genares recognizes the vital importance of getting ahead of the security curve.

“Security and peace of mind are hallmarks of the hospitality industry, whether that means electronic door locks or a guaranteed wake-up call,” said Genares President Eugene Harris. “Genares extends that security to hotels and their customers online. Certification of gReserve exhibits our commitment to providing not only state-of-the-art tools to manage customer reservations, but also the ability to use them in confidence.”

For more information about Genares and gReserve PCI-DSS compliance, contact Sara Wilkins at swilkins@genares.com or visit the web site at www.genares.com.

About Genares Worldwide Reservation Services
Genares Worldwide Reservations Services Ltd. was launched in 2004 by former Lexington Services Corp. founders and executives. As the first new central reservation system (CRS) to come to market since 1999, Genares’ gReserve web-based CRS and related services are provided on an ASP basis and designed for properties ranging from small independents to large chain hotels worldwide. The lodging industry’s only privately held reservations technology provider created by hoteliers for hoteliers, Genares’ services include: seamless GDS and Internet connectivity, a private-label Internet booking engine, a web-based CRS with two-way XML property management system interfaces, and private-label voice reservations/call center services. Genares is headquartered in the Dallas/Fort Worth suburb of Las Colinas, Texas, and has sales representation worldwide, with offices throughout Europe and Asia. The company is owned by Ricky A. Wilkins, Michael G. Wilkins and Eugene Harris. For more information, visit www.genares.com

“We are excited to partner with one of the most successful GDS technology providers in the world to bring a full suite of internet marketing and CRS tools to a region hungry for growth and revenue expansion,” said Saahil Mehta, Managing Partner of ResNet World.

The Genares platform was developed in 2005 and is considered the fastest-growing reservations service provider in the world. The Genares system is an open-ended platform that is continually upgraded and completely customizable.

“We have developed a truly integrated central reservation system that incorporates the latest technology while simplifying functionality and ease of use,” said Eugene Harris, President of Genares. “We are pleased to partner with ResNet World and feel that this agreement reinforces our reputation as a leading provider of reservations services.”

For more information on Genares, visit their Web site at: www.genares.com. For more information about ResNet World, visit: www.resnetworld.com.

About Genares Worldwide Reservation Services
Genares Worldwide Reservation Services Ltd. was launched in 2004 by former Lexington Services Corp. founders and executives. As the first new central reservation system (CRS) to come to market since 1999, Genares’ gBooker web-based CRS and related services are provided on an ASP basis and designed for properties ranging from small independents to large chain hotels worldwide. The lodging industry’s only privately-held reservations technology provider created by hoteliers for hoteliers, Genares’ services include: seamless GDS and Internet connectivity, a private-label Internet booking engine, a web-based CRS with two-way XML property management system interfaces, and private-label voice reservations/call center services. Genares is headquartered in the Dallas/Fort Worth suburb of Irving, Texas, and has sales representation worldwide, with offices throughout Europe and Asia. The company is owned by Ricky A. Wilkins, Michael G. Wilkins and Eugene Harris. For more information, visit www.genares.com.

I speak to hoteliers on a daily basis and it is no surprise that the main topic of discussion is the existing economic climate and the effects of the current recession on revenues. The good news is that today’s recession will undoubtedly be followed by tomorrow’s economic upturn. So, in today’s climate, hoteliers should work on diversifying their revenue channels to ensure they maintain fair market share as economies rebound and occupancies start to increase.

The single most important way to gain revenue opportunity is through the proper utilisation of the hotel’s Central Reservation System (CRS). Whether your customer wants to book through a travel agent, a thirdparty website, or directly with you, your CRS will provide that capability 24 hours a day. Those who practise well thought out electronic distribution strategies will not only maximise revenue now, but will also position themselves to outperform their competition in the future. Those who delay and react to the economic upturn will be left behind. One of the most important decisions a hotel can make is the selection of their CRS partner. The key word to consider when making this decision is ‘partner’.

A CRS provider must be willing to work with you to ensure revenue opportunities are maximised. This means listening to you, understanding your needs and most importantly, rolling up their sleeves and actually working for you in the electronic reservation market. CRS providers are often guilty of signing hotels, providing them minimal training and then fi ling their paperwork in a drawer. If the most common communication from a CRS provider is in the form of a monthly bill, there is truly something wrong with that partnership.Choosing a CRS provider is not always an easy decision. There are some top tips to ease the selection process in the box opposite, but the most important issue is to ensure that your provider is ready to work for you and earn your business. And don’t forget: this is a buyer’s market. Be willing to pay a fair price, but be clear about what you expect from your provider before you sign a contract. They are the experts, so be willing to rely on them to follow up on the promises they make. Look for companies you trust with your future and always remember…the future is bright!

Hoteliers today are exposed to new internet booking channels on a frequent basis and often find themselves spread thin in their efforts to effectively manage and properly yield these revenue streams.

One of the most important booking channels for your property that is usually overlooked is your very own website booking engine. This channel represents your most profitable booking channel and is the fastest growing revenue stream in the industry today. Every hotel should pay attention to this valuable booking tool and spend the time necessary to ensure it is one of the top producers in revenue.

This year begins a period of economic recovery for our industry as a whole. The climb will not be easy but there is indeed light at the end of this long tunnel.

With this recovery it is very important that hoteliers practice proactive sales techniques now to ensure they maintain their fair share of their respective markets. Focusing on your most profitable booking channel is one step closer to ensuring success in the future.

Identifying the need for a website booking engine is obviously the easy part. Choosing and utilising the right technology among the many options available can on the other hand be more daunting. Here are a few simple guidelines you can follow that will ensure you choose the right solution for your property.

1. Understand first that it is your property that sells a room.
Ensure that your website is rich with content and pictures that will allow you to showcase your property to potential customers. We live in a consumer world that is driven by visual stimulation that in more times than not can be the difference between securing a reservation or losing a potential customer.

2. Ensure that your website is properly marketed on the internet.
Today more than ever it is vitally important that you utilise proper web marketing techniques to ensure that potential customers find your property — even when they are not necessarily looking for it. There are a multitude of options available to you to assist you with web optimisation
techniques. These can range from complete website design servicesthat include SEO services to pay per click web advertising that will enhance your current site’s placement in search engines.

3. Make your booking engine accessible on your website.
Make sure your booking engine is visible on every page of your website. A clearly visible booking engine on every page of your website will increase your chances of receiving a booking at your property.

4. Don’t pay more than you should for your booking engine.
There is always a ‘balancing act’ that takes place between quality and cost when it comes to your booking engine. As stated earlier, your property and the quality of your website are very important factors in this channel’s success. Once a guest clicks on the ‘book now’ button you want their mind already made. This translates to choosing a booking engine that visually compliments your website and is easy to navigate. If the potential customer’s mind is already made up and your booking engine is easy to use, then the reservation is much more likely to be made. This means that you don’t have to pay thousands of dollars to develop or purchase an overpriced technology. Look for options that will cost a low, fixed price per booking or similar and focus the majority of resources on getting customers to your site first.

5. Don’t be afraid to let the experts help you with web marketing.
Not everybody is an expert in web marketing techniques. There are many options available to hoteliers, at many different price levels, to assist with the web marketing process. If you feel you are lacking in this area then find a fair priced solution for your property that will ensure you maximise the revenue associated with this channel.

6. Be bookable at every step
Once the potential customer is ready to book, it is crucial that they find the ‘book a room’ option with ease to complete the process, otherwise they could easily venture to another site which will cost you.

CGS Infotech has received ISO 9001:2000 certification and offers comprehensive website design and optimization packages at many levels.   CGS Infotech’s mission is to “Create a New Level of Success” for its clients and partners worldwide.

Rubicon satisfies its customers’ need for Competitive Rate, Demand Analysis and Display Position information through its MarketVision® product. Rubicon offers the broadest and deepest collection of market information in the travel industry today.

The tool is extremely user friendly and provides a simple way for users to compare rates of their competitors and stay competitive within their market share.  ResNet World for will serve as the only authorized dealer of AnyRate in the Middle East and India regions.