Podcast
Questions and Answers
What does 'Consortia' refer to?
What does 'Consortia' refer to?
- A type of discount rate
- A specific hotel brand
- Booking a reservation through a travel agent (correct)
- A room type classification
What does BAR stand for?
What does BAR stand for?
Best Available Rate
What does SMERF stand for?
What does SMERF stand for?
- Standard Market Evaluation of Rates for Forecasting
- Sustainable Management Education Resource Framework
- Special Minimum Educational Rate Funding
- Social, Military, Educational, Religious, Fraternal (correct)
What is SRP?
What is SRP?
What does MCAT represent?
What does MCAT represent?
What can MSEG be described as?
What can MSEG be described as?
What is a Global Indicator?
What is a Global Indicator?
What does data cleanliness refer to?
What does data cleanliness refer to?
What type of business should not be included in a BAR rate?
What type of business should not be included in a BAR rate?
How does data cleanliness affect hotel operations?
How does data cleanliness affect hotel operations?
Why does Hilton offer discounts?
Why does Hilton offer discounts?
What types of discounts does Hilton offer?
What types of discounts does Hilton offer?
What is a Merchant Channel?
What is a Merchant Channel?
What is an Opaque Channel?
What is an Opaque Channel?
Name a corporate marketing program.
Name a corporate marketing program.
How does GRO help manage discounts?
How does GRO help manage discounts?
What does LRA stand for?
What does LRA stand for?
What is a Group Ceiling?
What is a Group Ceiling?
How are group rates built in R&I?
How are group rates built in R&I?
What does Transient Protect mean?
What does Transient Protect mean?
When deciding your group ceiling, what should you reference?
When deciding your group ceiling, what should you reference?
What reports help in evaluating group strategy effectiveness?
What reports help in evaluating group strategy effectiveness?
How do you establish your group rate?
How do you establish your group rate?
What is FPLOS?
What is FPLOS?
What does LRV represent?
What does LRV represent?
What does GRO need to optimize decisions?
What does GRO need to optimize decisions?
What does 'Linked' refer to?
What does 'Linked' refer to?
How does GRO choose a BAR price?
How does GRO choose a BAR price?
What does 'Fixed' refer to?
What does 'Fixed' refer to?
What does 'Qualified' mean?
What does 'Qualified' mean?
What does 'Yieldable' mean?
What does 'Yieldable' mean?
What does 'Uncertainty' refer to?
What does 'Uncertainty' refer to?
What does 'Semi-Yieldable' mean?
What does 'Semi-Yieldable' mean?
What are 'Exceptions'?
What are 'Exceptions'?
What is an information manager?
What is an information manager?
What are 'Influences'?
What are 'Influences'?
What is a Demand Override?
What is a Demand Override?
What does 'Override' mean?
What does 'Override' mean?
What is a Wash Override?
What is a Wash Override?
What does 'Cost of Walk' refer to?
What does 'Cost of Walk' refer to?
What are the four components of the revenue optimization cycle?
What are the four components of the revenue optimization cycle?
At what level does GRO forecast?
At what level does GRO forecast?
What is the end goal of revenue management?
What is the end goal of revenue management?
How does GRO indicate the highest BAR is restricted due to LRV?
How does GRO indicate the highest BAR is restricted due to LRV?
How does GRO indicate the highest BAR is restricted as a result of LRA demand?
How does GRO indicate the highest BAR is restricted as a result of LRA demand?
Which forecast groups should you verify if doubts arise about a BAR restriction?
Which forecast groups should you verify if doubts arise about a BAR restriction?
How often should you perform a forecast review for the next 365 days?
How often should you perform a forecast review for the next 365 days?
How often should you use the information manager to manage exceptions?
How often should you use the information manager to manage exceptions?
How often should you perform a forecast review for booking windows?
How often should you perform a forecast review for booking windows?
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Study Notes
Revenue Management Terms and Definitions
- Consortia: Refers to booking reservations through a travel agent.
- BAR: Stands for Best Available Rate, which is applied when a guest does not qualify for discounts and books the retail rate on Hilton.com.
- SMERF: Acronym for Social, Military, Education, Religious, Fraternal segments in business.
- SRP: Special Rate Plan, the lowest price level Hilton uses to track business.
- MCAT: Classification consisting of one or more SRPs.
- MSEG: Classification that includes IBT (Internet Best Rate), Rack, or Leisure rates.
- Global Indicator: Classification including transient, group, perm, and non-revenue categories.
- Data Cleanliness: Ensuring historical data accuracy by coding reservations correctly.
Business Management Considerations
- Business Exclusions from BAR: Qualified business, CNRs (Corporate No-Show Rates), and LNRs (Leisure No-Show Rates) should not be included.
- Impact of Data Cleanliness: Accurate data allows Ground Revenue Optimization (GRO) to make optimal decisions, leading to realistic performance results and strategic focus.
- Purpose of Discounts: Hilton provides discounts to cater to a diverse audience, ensuring competitive room sales beyond just BAR.
- Discount Types Offered by Hilton: Includes the Hhonors program, Online Travel Agents (OTAs), corporate marketing, and team travel.
Pricing and Room Management
- Merchant Channel: Platforms such as Expedia and Hotels.com, enabling customers to compare hotel rates and features before booking.
- Opaque Channel: Booking sites where hotel identities are hidden until after a non-refundable purchase is made.
- Corporate Marketing Programs: Examples include Advanced Purchase, Bed and Breakfast, and Romance Package offers.
- GRO's Role in Discounts: Discounts above Last Room Value (LRV) are available for purchase; those below are closed out.
- Last Room Value (LRA): Ensures discount rates are available when BAR rates are sold.
Group and Transient Reservations
- Group Ceiling: Indicates the number of rooms available for the sales team to sell to groups.
- Transient Protect: Rooms reserved for transient guests at potentially higher rates; these cannot be allocated to groups.
- Group Rate Establishment: Based on seasonal trends and specific day of the week demand.
Revenue Optimization Strategies
- Full Pattern Length of Stay (FPLOS): Represents stay restrictions and allows varying price points for guests arriving on the same date.
- Revenue Management Cycle: Consists of the four components: Forecast, Optimize, Control, and Monitor.
- Monitoring Techniques: Utilize STAR reports and Cognos MOS reports to assess group strategy effectiveness.
- Forecasting Level: GRO forecasts at the group level due to the broad nature of SRPs and the diversity of MCATs.
Operational Guidelines
- Forecast Review Frequency: Monthly for a full year and weekly for booking windows; daily for managing exceptions.
- GRO Indicators: Teal bubbles indicate restrictions due to LRV; blue circles with white exclamation points signal LRA demand restrictions.
- Conclusion Aim of Revenue Management: Focuses on maximizing REVPAR (Revenue Per Available Room) and REVPAR index to enhance total revenue outcomes.
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