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Eclipse Economics: How the 2024 Total Solar Eclipse is Shaping U.S.
On April 8th, the next total solar eclipse will occur, with a significant number of U.S. cities in the path of totality. This is the first total solar eclipse visible in the U.S. since 2017. Outside of knowing not to stare directly at a solar eclipse (you know that right?), the other thing most hoteliers…
Hotel Development – Looking Beyond Traditional Metrics
Evolving Market Environment With the U.S. construction pipeline hitting a record high in the fourth quarter of 2023, and recent positive sentiment about deal activity, the industry could see increased competition for hotel assets later this year. As a result, it is critical for key stakeholders to look beyond traditional metrics to make more informed…
Maximizing vs. Optimizing: Navigating Hotel Commercial Strategy for Long-term Success
In commercial strategy, the concepts of “maximize” and “optimize” play a crucial role in the success of a hotel. Although both terms refer to strategies aimed at improving profitability and asset value, they do it in different ways, each with its own implications. Maximizing Revenue: A Narrow Focus Maximizing revenue, often measured by metrics like…
Proactive vs. Reactive Approach in Hotel Commercial Strategy
In our dynamic industry, the challenge of adopting a proactive versus a reactive approach in commercial strategy is more important than ever. Traditionally, commercial strategy teams have primarily responded reactively to shifts in the market, focusing on managing rates and filtering inbound business. However, this approach is no longer effective as we focus on increased…
The Essence of Commercial Strategy: Asking the Right Questions to Grow Profit Contribution
The purpose of commercial strategy is to streamline revenue generation efforts and be effective in capturing the highest profit contribution available with the least investment possible. To execute this successfully, the commercial strategy team has to focus its limited resources on the highest value activities by surgically targeting opportunities based on the highest profit contribution.…
The Value of Optimal Business Mix
Based purely on a cost-per-channel assessment, a hotelier might think that he or she should fill their hotel only with bookings from Brand.com with its high profit margins, but most hotels fill up with a mixture of demand from all channels, some from direct channels and some third-party channels. Most hotels have traditionally managed segment…
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