Function Space Revenue Management
Function Space Revenue Management Revenue Optimization Conference (ROC) April 22, 2015
IHG©
Agenda
The Concept @ IHG
IHG©
Group Price Optimization
2
Why Function Space RevMan? “Function Space will have the highest likelihood of success outside of traditional rooms revenue management” -2011 Survey by Sherri Kimes
IHG©
The Challenges Ownership – Sales, Catering Sales, F&B, RM
The Approach – Operational & Sales Driven vs Analytical
Function Space - What, When and How to use it
Function Space vs Function Space + Rooms
The Ancillary Revenues (Wifi, AV, Flowers)
IHG©
IHG’s Approach to Function Space RM Data Collection
Data Collection
Data Analyses
Data Analyses
Market Segment
Revenue Metrics
Pricing
Forecasting
Review
IHG©
Inventory / Space Mngt
Systems - Tools – SOPs - KPIs
Breaking the C&E Business…beyond Segments!!
Lunch Coffee Breaks
Product Launch/AGM
Event Type
Booking Class
Market Segment
Corporate/Trade Fair
Residential IHG©
Booking Type
Hotel Centric
Corporate / Brand Centric
How do we Segment the Market?
IHG©
•Age •Gender •Income •Occupation •Education
•City •State •Country •Region
•Lifestyle •Personality •Social class
Demographic
Psychographic
Geographic
Behavioural
•Occasions •Benefits sought •Usage patterns •Loyalty & Frequency of Purchase
IHG Market Segmentation
MEETING
CORPORATE ASSOCIATION TRADE FAIR GOVT / MILITARY INCENTIVES
CORPORATE
ASSOCIATION
TRADE FAIR
EXHIBITION GOVT/MILITARY
GROUP INCENTIVES
LEISURE GRPS LEISURE
INTERNAL
SOCIAL WHOLESALE
TOUR SERIES
IHG©
Revenue Metrics for C&E
IHG©
Day Part concept
Meeting Rooms 4 x 4 day parts = 16 day parts Ballroom
1 x 4 day parts =
Total
5 x 4 day parts
IHG©
4 day parts
= 20 day parts
Rooms Metrics vs C&E Metrics Occp%
Occp
RevPAST
IHG©
ADR
KPIs
RevPAR
RevPOST
C&E: Occupancy
OCC
=
Total Occupied Space in Square Meters by Day Parts Total Available Space in Square Meters by Day Parts
IHG©
C&E: RevPOST
RevPOST
=
Day Part’s Total Revenue Day Part’s Total Occupied Space
IHG©
C&E: RevPAST
RevPAST
=
Day Part’s Total Revenue Day Part’s Total Available Space
IHG©
C&E: Quick Calculator
RevPAST REVPAR
RevPAST/RevPOST OCC% REVPAR/ADR ==OCC
RevPAST/OCC=RevPOST REVPAR/OCC% = ADR
RevPOST ADR
OCC Occupancy RevPOST X OCC=RevPAST ADR X OCC (% ) = REVPAR
IHG©
C&E Metrics with Profitability
ProPOST
=
Day Part’s Total Profit Day Part’s Total Occupied Space
ProPAST
=
Day Part’s Total Profit Day Part’s Total Available Space
IHG©
Forecasting in C&E
IHG©
Yield Management in C&E
IHG©
Getting it Right
CUSTOMER SPACE TIME PRICE
IHG©
Intro to GPO
Group Price Optimization (GPO) streamlines and optimizes the Group selling activities
Client Focused
IHG©
Market Savvy
Performance Driven
Analytics Based
20
Group Price Optimization
Demand (Group & Transient) Price Sensitivity (Willingness to Pay)
Minimal Acceptable Rate
Analytics Engine
Supply (Capacity)
Profitability
IHG©
21
THANK YOU!!
Tarandeep Singh Director Revenue Analytics Asia Middle East & Africa
IHG©
IHG©
Agenda
The Concept @ IHG
IHG©
Group Price Optimization
2
Why Function Space RevMan? “Function Space will have the highest likelihood of success outside of traditional rooms revenue management” -2011 Survey by Sherri Kimes
IHG©
The Challenges Ownership – Sales, Catering Sales, F&B, RM
The Approach – Operational & Sales Driven vs Analytical
Function Space - What, When and How to use it
Function Space vs Function Space + Rooms
The Ancillary Revenues (Wifi, AV, Flowers)
IHG©
IHG’s Approach to Function Space RM Data Collection
Data Collection
Data Analyses
Data Analyses
Market Segment
Revenue Metrics
Pricing
Forecasting
Review
IHG©
Inventory / Space Mngt
Systems - Tools – SOPs - KPIs
Breaking the C&E Business…beyond Segments!!
Lunch Coffee Breaks
Product Launch/AGM
Event Type
Booking Class
Market Segment
Corporate/Trade Fair
Residential IHG©
Booking Type
Hotel Centric
Corporate / Brand Centric
How do we Segment the Market?
IHG©
•Age •Gender •Income •Occupation •Education
•City •State •Country •Region
•Lifestyle •Personality •Social class
Demographic
Psychographic
Geographic
Behavioural
•Occasions •Benefits sought •Usage patterns •Loyalty & Frequency of Purchase
IHG Market Segmentation
MEETING
CORPORATE ASSOCIATION TRADE FAIR GOVT / MILITARY INCENTIVES
CORPORATE
ASSOCIATION
TRADE FAIR
EXHIBITION GOVT/MILITARY
GROUP INCENTIVES
LEISURE GRPS LEISURE
INTERNAL
SOCIAL WHOLESALE
TOUR SERIES
IHG©
Revenue Metrics for C&E
IHG©
Day Part concept
Meeting Rooms 4 x 4 day parts = 16 day parts Ballroom
1 x 4 day parts =
Total
5 x 4 day parts
IHG©
4 day parts
= 20 day parts
Rooms Metrics vs C&E Metrics Occp%
Occp
RevPAST
IHG©
ADR
KPIs
RevPAR
RevPOST
C&E: Occupancy
OCC
=
Total Occupied Space in Square Meters by Day Parts Total Available Space in Square Meters by Day Parts
IHG©
C&E: RevPOST
RevPOST
=
Day Part’s Total Revenue Day Part’s Total Occupied Space
IHG©
C&E: RevPAST
RevPAST
=
Day Part’s Total Revenue Day Part’s Total Available Space
IHG©
C&E: Quick Calculator
RevPAST REVPAR
RevPAST/RevPOST OCC% REVPAR/ADR ==OCC
RevPAST/OCC=RevPOST REVPAR/OCC% = ADR
RevPOST ADR
OCC Occupancy RevPOST X OCC=RevPAST ADR X OCC (% ) = REVPAR
IHG©
C&E Metrics with Profitability
ProPOST
=
Day Part’s Total Profit Day Part’s Total Occupied Space
ProPAST
=
Day Part’s Total Profit Day Part’s Total Available Space
IHG©
Forecasting in C&E
IHG©
Yield Management in C&E
IHG©
Getting it Right
CUSTOMER SPACE TIME PRICE
IHG©
Intro to GPO
Group Price Optimization (GPO) streamlines and optimizes the Group selling activities
Client Focused
IHG©
Market Savvy
Performance Driven
Analytics Based
20
Group Price Optimization
Demand (Group & Transient) Price Sensitivity (Willingness to Pay)
Minimal Acceptable Rate
Analytics Engine
Supply (Capacity)
Profitability
IHG©
21
THANK YOU!!
Tarandeep Singh Director Revenue Analytics Asia Middle East & Africa
IHG©
