Group business is a good revenue potential for many hotels, yet most have yet to realise this as applying revenue management principles and best practices to non-room revenue streams has always been too complex to achieve.
IDeaS’ FSRM helps hotels increase group and function space profits.
To help hotels manage this revenue IDeaS Revenue Solutions recently launched its new solution, Function Space Revenue Management (FSRM), which it described as the first of its kind for the hotel industry.
IDeaS said the innovative solution would capitalise on non-room revenue streams and increase group and function space profits for hotels worldwide.
Sanjay Nagalia, chief operating officer of IDeaS, said, “Meetings and events often account for 40% to 60% of revenues for many hotels, yet profits are left behind when function space goes unsold or undersold.”
He added that the new revenue solution “empowers sales organisations to optimise profits across all function space revenue streams, and drive better revenues company-wide.”
A 2011 survey by Sherri Kimes, professor of operations management at Cornell University and a leading revenue management academic, recognised function space as the area with the highest likelihood of success outside of traditional rooms revenue management.
IDeaS said that by shifting the paradigm away from “rooms-only” revenue management, the FSRM is empowering sales organisations to evaluate not only group business, but also revenue impact on an entire hotel including rooms, food and beverage and function space.
The solution features include a forecast validation dashboard, demand calendar, and price evaluation tools.
Some key functions of the solution:
- Forecasts and validates expected demand, by day and day parts, using advanced analytics to increase group profit by optimising the total profit contribution from various revenue streams.
- Helps maintain targeted profit per available space time (ProPAST) levels through evaluating demand-driven displacement and making demand-based changes to free sell restrictions on function-only business.
