News for the Hospitality Executive
HSMAI Greater New York Chapter Reports on NYC Hotel Business,
Revenue Management as a Discipline
NEW YORK CITY, NY (March 15, 2010) -- The hotel business in New York City has begun to turn the corner as Sean Hennessey, CEO of Lodging Advisors, told the Greater New York Chapter of the Hospitality Sales & Marketing Association International (HSMAI) that based on an analysis of STR data, he forecasts that New York City hotel RevPAR turned positive in February 2010, the first time since September 2008.
RevPAR, the revenue per available room, refers to the revenue generating effectiveness of a hotel property. It is calculated by multiplying the average daily room rate (ADR) by the occupancy rate.
Hennessey is forecasting RevPAR to be $132 for the month of February 2010, up from $124.38 for the month of February 2009. "This improvement was due to double-digit occupancy growth, all the more impressive because the market has seen a steady stream of new hotels opening during the past year," said Hennessey.
"There remains substantial unmet demand for accommodations in New York City. ADR, which Lodging Advisors forecasted to turn positive in the second half of 2010, are likely to turn positive sooner, given the current pace of improvement," Hennessey added.
This comes at a time when Revenue Management is gaining recognition throughout the hospitality industry. Revenue Management, a relatively young discipline, was the focus of the recent HSMAI Greater New York Chapter luncheon seminar.
"Fifteen years ago Revenue Management was not even recognized as a discipline," said George Kurth, Director of Sales and Marketing for the Fitzpatrick Hotel Group.
"It has become more strategic and less tactical over the years, less about managing systems and more business intelligence and executive communication," said Alison Shewell, Director of Revenue for The Peninsula New York.
"Last year, our Revenue Management department was moved physically from Reservations to Sales and Marketing, one floor up," confides Benjamin Sinclair, Director of Marketing for the St. Regis.
Evolution of revenue management inside different organizations seems to have taken different paths at different speeds from collaborative colleague to full blown membership on the executive team. Revenue management leads to review and directing of new income streams in addition to room revenues.
Shewell suggests that Spa Services, Food & Beverage outlets and Catering are likely candidates. Smith Travel Reports has introduced a Spa report which further affirms its place in contributing to the bottom line.
The other subject of focus at the HSMAI Chapter event was Social Media,
another fast growing discipline for the hotel industry.
Sinclair encourages hoteliers to "find the right fit for developing your brand voice. Whether you are setting up the brand for adoption by the next generation of consumers or reinforcing the message directed at the current one, it is critical to construct a coherent message for using the tool of social media from the corporate offices to the hotel property."
|Also See:||What NYC's Revenue Managers Want You to Know; Insights from the HSMAI NYC Revenue Managers Summit / April 2006|
|Revenue Management: Too Tactical and Not Strategic Enough; Highlights from HSMAI's Revenue Management Strategy Conference / June 2005|