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S implify. E xecute. M easure. C oach. GM Conference 2014. PDSA Review. by Becky Robles and Nanci Milam. How to make the most of your Rev Gen meeting. How our meetings happen today. What is the PDSA?. Potential Demand Strategy Analysis Brand Agnostic tool for all of White Lodging*.

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  1. Simplify Execute Measure Coach GM Conference 2014

  2. PDSA Review by Becky Robles and Nanci Milam How to make the most of your Rev Gen meeting

  3. How our meetings happen today

  4. What is the PDSA? • Potential Demand Strategy Analysis • Brand Agnostic tool for all of White Lodging* * Currently only Hilton (GRO), Marriott and Hyatt Brands PDSA

  5. The Definition of Demand An economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service increases as its demand increases and vice versa.

  6. Why Measure Demand? • Tells you the number of customers in the market for that day, and what you and your competitors have the potential of booking. • When there is the highest demand, we have the opportunity to change mix to impact the overall ADR.

  7. Types of Demand • Constrained demand- the number of rooms you could sell, up to the number of rooms in the hotel. • Unconstrained demand- the number of rooms you could sell if your hotel was “elastic” and you could keep selling over the hotel’s capacity.

  8. In other words, if your hotel was made of Legos, you could keep building more rooms for all the unconstrained demand. Notice this property from Region 5 that is currently removing rooms since season is ending.

  9. Here in Regions 1, 6 and 19, we could continue to expand during Cattle Drive season when unconstrained demand grows.

  10. Unfortunately… Our hotels are not built using Legos, so when the unconstrained demand reaches a certain point, we need to make strategic decisions to maximize our rate potential.

  11. What’s In It For You to use the PDSA? • Better Communication with Revenue Manager • Easier, clearer, faster decision making • Takes the “emotion” out of decisions • Same form across brands, easier when you transfer hotels • Better forecasting potential • More opportunity to increase market share, rank and therefore bonus

  12. Demand Indicators

  13. Demand Indicators

  14. Group Section

  15. Group Section

  16. Group Section

  17. Group Section • Are the to-be’s realistic based on time to book/day of week etc? • Negative to-be’s can change the overall unconstrained occupancy, and therefore the demand indicator.

  18. Group Section

  19. Group Section • Booking Evaluation test should be run for • ANY group that hits an A or B day • ANY group that the group changes it to an A or B day. • Let us show you.

  20. Group Section • April 21st became a B day when this group was added in- sending the inquiry to a Booking Evaluation test.

  21. Contract Section

  22. Transient Section • How many transient rooms do you have the potential to sell – if you had unlimited rooms.

  23. Events • Spots for both last year and this year Events • Indicates the total unconstrained demand same day last year. • What might that tell us?

  24. Rewards Redemptions

  25. Total Occupancy Section

  26. Hotel Sell To Number • Authorized oversell on each day • Without oversells you will never get to a fill • It should be higher further out, and should not be flat lined- • Day of week matters….

  27. Rate Strategies-Marriott

  28. Rate Strategies-Hilton

  29. Competitive Pricing Section

  30. Questions you should be asking….. • Why do we have items closed (or restricted so heavily) when we are not forecasting a potential sell out? • Demand says we should have an A day- enough to sell us out- why are discounts open? • Are there any dates that your Group target rate is higher than your Retail Rate?

  31. Questions you should be asking….. • How do negative to-be’s impact the overall demand forecast? • Does your group target rate make sense with your overall retail rate strategy? • On Easter Weekend, do you feel the pricing is low enough to capture the “E” demand based on the comp set’s rates?

  32. What’s In It For You? • Better Communication with Revenue Manager • Easier, clearer, faster decision making • Takes the “emotion” out of decisions • Same form across brands • Better forecasting potential • More opportunity to increase market share, rank and therefore bonus • Have we shown you that capability?

  33. Questions?

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