Company’s Profile

About Temple Gate Hotel

 4-Star Property
 70 bedrooms
 Legends Restaurant
 Preacher’s Bar
 Event spaces

Revenue Management at Temple Gate

 Optimisation of product pricing to maximise profits
 Departments Involved- Reservations, front desk, finance, operations
 99% Focus on room sales
 Revenue Management- Science, Creativity & Teamwork

Revenue Distribution
 Rooms- 60%
 Food & beverage- 35%
1. Food- 25%
2. Beverage- 10%
 Events- 5%
Revenue Distribution Cont.
 Rooms
1. Groups- 45%
2. Corporate- 20%
3. Leisure- 25%
4. OTAs- 13% to 14%
Levers of revenue management
 Distribution Channels
 Market Segments
 Rates
 Technology- AVVIO & ALOHA.
Distribution Channels
 Direct/ Website
 Agents
 Groups
 OTAs
Market segments
 Groups
 Leisure
 Corporate
 OTAs
 FITs
Rates Types
 Published Rates
 Local Privilege Rate (For corporate rates)
 Packaged Rates
 Opaque Rates
 Complementary
Rate Bands are used on weekdays & weekends
Technology- AVVIO & ALOHA.
Revenue Growth Strategies
 Minimum Length of stays
 Groups/Agents
 Overbooking
 Minimise OTAs
 Choose wisely- Groups
 Increase customer loyalty
 Incentivise staff
 Better service
Important KPIs
 Occupancy%
 RevPar
 ARR
 Food cost, food margins,
 labour/payroll costs,
 linen costs.

Performance Management
Performance Review
 External Benchmarking
1. Organization names not revealed
2. Irish Hotels Federation- local Midwest branch

 Internal benchmarking  Key Performance Index

1. Year on Year growth
2. Segment growth
3. Comparisons – Budget, EBITDA, Cost lines, payroll, revenue.
4. Cash flow
5. Profit & loss accounts

Performance Review Cont..

 Digital partner reports
1. Web page reports,
2. Webpage reports,
3. google analytics,
4. market segmentation reports,
5. competitor reports,
Budgets
 4 Quarters- November, February, May, August.
 Aggregation of
1. Review of market segments
2. Review of distribution channels
3. Forecasts
4. Washdown
5. Projected occupancies
6. Projected Rates
7. Total events
8. Comparisons

Expenses
 Opex- Operating expenses
 Capex- Capital expenditure
Creditors & Debtors
 Blocks of 30, 60, and 90 days.
 Payables/ receivables accounts, preferred to be closed within 30-45
days.
 Key Performance Index
1. Year on Year growth
2. Segment growth
3. Comparisons – Budget, EBITDA, Cost lines, payroll, revenue.
4. Cash flow
5. Profit & loss accounts

 Investment Appraisals & ROI

1. Capex budgets guide investments.
2. Planned years in advance
 Return on Investments
1. Calculation Methods- Average Rate of Return 7 Payback

 Non- Financial Performance

1. Customer satisfaction- Priority
 2. Front line skills training
3. Rewards & recognitions
4. Handwritten customer feedbacks
Cost saving initiatives-
Not to the detriment of the quality.
1. Incentivize staff
2. Heating & Kitchen- LPG to Natural gas
3. Normal to LED bulbs
4. Boiler upgrade
Quality issues were common in Bulbs & Natural gas.

Revenue & Performance management

How are they linked to each other?

Revenue Management
 RevPar Performance Management
 Occupancy  EBITDA
 ARR  Cash Flow
 TrevPar  Profit & loss account
 All Expenses  Budgets
 Market segments  Cost savings
 Distribution channels