Learn. Perform. Achieve! June 2023: Revenue Management Strategy, Costs & Profit

PERFORM, PERFORM 2023 Choice Hotels

Every month we highlight opportunities for leaders and managers to improve the performance of their teams. Plus, we are pleased to announce Operator Certifications (HOST/Extended Stay Essentials) completions and acknowledge the achievement of those who are now operator certified.

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Revenue Management – Strategy vs Tactics

Written by Erica Garcia, SR. Revenue Manager at Choice Hotels

Strategy Vs. Tactics: What’s the difference?

Let’s break it down. In chess, strategy refers to the big-picture plan, while tactics are the specific moves you make to achieve that plan. The same applies to the hotel business. Your strategy is the overarching plan to achieve a specific goal, while tactics are the actions you take to execute that strategy.

Now, why is it so important to differentiate between strategy and tactics?

The answer is simple. Many hotel owners and managers tend to focus solely on tactics without considering their overall strategy. While tactics are essential, they can be rendered less effective if they’re not aligned with your strategic goals. That’s why it’s essential to understand the difference between strategy and tactics and how they contribute to your hotel’s bottom line.

So, what does this look like in practice? Let’s dive into some real-world examples:

Maybe you want to increase occupancy and index above your fair share by targeting more discounts and corporate business. To achieve this, you could open up more opaque rates or offer length-of-stay promotions with higher discounts than usual. You could also train your front desk staff to ask lead-generating questions like “What brings you into town?” to uncover future corporate opportunities.

Or perhaps you want to improve ADR growth over weekends when demand is typically higher. In this case, you could limit the number of discounts that book each day, push more to your retail rates, and upsell guests to higher-priced rooms. Creating an incentive for your front desk team to push more retail rates for walk-ins or call-ins can also help.

Finally, you could maximize RevPAR performance by optimizing revenue for your bulk room types using dynamic pricing. This involves adjusting room rates based on unique demand patterns. And a great tactic to support this strategy is to take advantage of ChoiceMAX’s room-type pricing option, which expands on the price-generating ability of ChoiceMAX and enables more of your room classes to be priced at their maximum potential. This can save you time and potentially increase your revenue growth.

Like a game of chess, hotel owners and managers must know when to make strategic moves and when to use specific tactics to win the hotel game. While tactics are essential for achieving short-term success, they’re only effective if they’re aligned with a solid strategy. By combining strategies and tactics, you can drive performance and improve your bottom line.

So, are you ready to level up your hotel game? It’s time to start thinking strategically!

Check out this training on ChoiceU.com as well!

Revenue Management – Strategies for Success

ChoiceMAX: Your Revenue Management Solution

Lowering Operating Costs to Increase Profit

No doubt you have a lengthy list of items that make up your hotel’s operating costs. With so many operational costs to juggle, staying profitable requires a detailed plan. During this video, which was recorded at the 2023 Choice Hotels Convention, learn easy, quick, actionable strategies for lowering operating costs from a panel of successful hotel leaders who do it best.

“Attending the education sessions at the 2023 Choice Hotels Convention was a beneficial experience for me. Thanks to the wide-ranging, comprehensive, and engaging presentations by Choice University; including those performed live on the ‘ChoiceU Talks’ stage; I learned a great deal about topics ranging from profitability to operational challenges to mental health, including important subjects like how to access and use benchmarking tools, attracting, and retaining employees, and breakfast optimization strategies. I feel more equipped than ever to tackle the challenges of the hotel industry and drive success for my business.”

Brent Jackson, President of Jackson Hotel Management.

Watch this Choiceu Talk video now on ChoiceU TV

Your Key To Profit – Unlock a New Level of Success!

Your business is profit. Our business is you. This is the mission behind the ‘Your Key to Profit’ program. This program is your one-stop shop for cost savings programs, best practices, profitability calculators, and much more to help impact your bottom line. During this video, which was recorded at the 2023 Choice Hotels Convention, learn the tools of ‘Your Key to Profit’, experiences from your fellow franchisees about the program, the 5 major components in the profitability roadmap, and how profitability ties into the overall guest experience. By the end of the session, the ‘Your Key to Profit’ website will be at the top of your bookmarks!

Watch this Choiceu Talk video now on ChoiceU TV

Choice University is excited to announce that we have launched our LinkedIn page. Our goal is to work together to help hotel leaders and their team members achieve their goals through learning.

Please give us a follow on LinkedIn to stay connected to Choice University through our LinkedIn Page!

Operator Certifications (HOST/ExtendedStay Essentials) Earned in May!

Congratulations to the following individuals who earned their operator certification last month!

Nisha Patel AL203 Sleep Inn
Madan Ghimire AR229 Econo Lodge
Lundy Tol CA701 Mainstay Suites
Teresa Quiroz CAE04 Quality
Nicholas Green CAE45 Quality
Dolly King CAG24 Ascend
Ana Ventura CAG68 WoodSpring
Karun Randhawa CNA43 Comfort Inn
Jorge Arevalo FL096 Quality
Mo Patel FL555 Quality
Heidi Willis FL799 Mainstay Suites
Troy Wimberly FLE81 Comfort Suites
Maria Zafra FLF20 WoodSpring
Yogesh Patel GA271 Quality
Mohammad Khan GA843 Comfort Inn
Saikumar Shankaiahgari IA078 Quality
Jordan Locke IA152 Mainstay Suites
George Monaco IL030 Quality
Paramveer Singh IN123 Quality
Devon Ponder KS236 Comfort Suites
Kultar Dhaliwal KS241 Quality
Shautay Wade KS334 Mainstay Suites
Tallika Patel KS336 Comfort Inn
Rashmi Patel LA248 Comfort Inn
Charlotte Long LA472 Mainstay Suites
Craig Salmon MD291 Sleep Inn
Karan Patel MI242 Comfort Suites
Heather Carter MI521 WoodSpring
Latoya Harlan MI558 WoodSpring
Kelly Nelson MO086 Sleep Inn
Lori Filippini MT029 Comfort Inn
Raj Gandhi NJ312 Clarion
Mark Terrill OH257 Clarion
Shalin Vakharia OH837 Mainstay Suites
Robert Rivera OR021 Quality
Deseray Burnett OR339 Ascend
Tracey Goss PA234 Quality
Dory Kumar PA887 Mainstay Suites
Mital Patel SC018 Sleep Inn
Marlena Flinkingshelt SC026 Mainstay Suites
Dhara Trivedi SC425 Quality
vinney chaudhari SD070 Quality
Mohanbhai Patel TN245 Econo Lodge
Vasu Patel TN287 Mainstay Suites
Kayla Byers TN310 Comfort Suites
Shirley Pan TX761 Comfort Suites
Kenia Estrada TXC63 Sleep Inn
Aashish Chopra TXG03 Mainstay Suites
Daniel Norton TXI11 Comfort Suites
Diego Vega UT177 Comfort Inn
Jason Stanfill VA865 WoodSpring
Sarah Lumbra VT031 Comfort Inn
Kareana Haskins VT073 Comfort Inn
Chris Moore WI366 WoodSpring
Kenny Patel WI460 Mainstay Suites
Nitin Talwar WV022 Quality