Hotel Revenue Management: Today and Tomorrow Cornell Hospitality Report by Sheryl E. Kimes Vol. 8, No. 14, August 2008 www.chr.cornell.edu Advisory Board Scott Berman, U.S. Advisory Leader, Hospitality and Leisure Consulting Group of PricewaterhouseCoopers Raymond Bickson, Managing Director and Chief Executive Officer, Taj Group of Hotels, Resorts, and Palaces Scott Brodows, Chief Operating Officer, SynXis Corporation Paul Brown, President, Expedia, Inc., Partner Services Group, and President, Expedia North America Raj Chandnani, Director of Strategy, WATG Benjamin J. “Patrick” Denihan, CEO, Denihan Hospitality Group Michael S. Egan, Chairman and Founder, job.travel Joel M. Eisemann, Executive Vice President, Owner and Franchise Services, Marriott International, Inc. Kurt Ekert, Chief Operating Officer, GTA by Travelport Kevin Fitzpatrick, President, AIG Global Real Estate Investment Corp. Gregg Gilman, Partner, Co-Chair, Employment Practices, The Robert A. and Jan M. 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Kimes, Ph.D. About the Author Sheryl e. Kimes, Ph.D., is Singapore Tourism Board Distinguished Professor of Asian Hospitality Management at the Cornell University School of Hotel Administration, where she has also served as interim dean (sek6@cornell.edu). In teaching restaurant revenue management, yield management, and food and beverage management, she has been named the school’s graduate teacher of the year three times. Her research interests include revenue management and forecasting in the restaurant, hotel, and golf industries. She has published over fifty articles in leading journals such as Interfaces, Journal of Operations Management, Journal of Service Research, Decision Sciences, and Cornell Hospitality Quarterly. She has served as a consultant to many hospitality enterprises around the world, including Chevy’s FreshMex Restaurants, Walt Disney World Resorts, Ruby’s Diners, Starwood Asia-Pacific, and Troon Golf. 4 The Center for Hospitality Research • Cornell University executive SummAry otel revenue management needs stronger support from human resources policies, according Hto this survey of 186 revenue managers. At the same time, respondents to the survey anticipate that revenue management will extend to other areas of the lodging business, including spas and function spaces. The principal human resources issue involves career paths for employees involved in revenue management. At the moment, the route to promotions for revenue managers is not clear. Some may move up from a single hotel to a group or division, but others may simply find employment in another lodging chain to move up. Moreover, many executives pointed to the difficulty of finding qualified revenue managers. With regard to the extension of revenue management to other hospitality areas, respondents commented that an integrated approach will be necessary. Although revenue management is largely viewed as a technical or quantitative process, pricing strategy and competitive tactics have become strong elements in revenue management. In all categories, respondents living in Asia thought revenue management techniques and issues were in greater need of improvement than did the revenue managers in North America. The dichotomy was particularly pronounced regarding human resources issues, but was also noticeable for technical issues, such as forecasting, optimization, and overbooking, as well as pricing and distribution. Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 5 cornell hoSpitAlity report Hotel Revenue Management: Today and Tomorrow by Sheryl E. Kimes , Ph.D. Revenue management (RM) has been practiced in the hotel industry for over twenty years and has been adopted by nearly all of the major hotel chains and many independent hotels. That said, RM practices vary. Some hotels use highly sophisticated RM systems, while other hotels rely on simple spreadsheet models. Many hotels now employ revenue managers at the property level, some also have regional revenue managers, and nearly all chain hotels have a revenue management department or group at the corporate level. Although RM seems to be well established in the A request to complete the survey was sent to all mem- lodging industry, I was interested in finding out what RM bers of the INFORMS revenue management and pricing professionals think about current revenue management section, members of the revenue management career track practices and what they see as the largest challenges and advisory board of Cornell University and the Cornell-Nan- opportunities. To study this, I conducted an on-line survey yang Institute, and to at least ten different hotel, distribu- of hotel RM professionals in Asia and North America. This tion, and RM consulting firms. Posted on April 4, 2008, the study is a subset of a larger study done on RM professionals survey had attracted 186 responses by late May. In addition, in a variety of industries. an RM Roundtable was held in Singapore in late May 2008, 6 The Center for Hospitality Research • Cornell University Exhibit 1 improvement potential of rm techniques 3.0 2.5 2.0 1.5 1.0 Forecasting optimization overbooking Group corporate pricing business account decisions decisions where the participants (comprising senior executives from worked as analysts. About 57 percent of the respondents Carlson, Fairmont, IDeaS Advantage, IHG, Langham, Mar- worked in North America, and the rest in Asia. The respon- riott, Millennium Hotels, Minor Group, Raffles, Revenue dents had considerable revenue management experience, Management Solutions, Swissôtel, and SynXis) conducted with 41.3 percent having more than five years of experience extensive discussions on the survey results. Selected com- (and 4.7% having more than fifteen years). At the other end mentary from the discussion is included in this report. of the scale, about one-fifth had been working in RM for less Survey respondents were asked to assess six technical than two years. The respondents were highly educated, with revenue management issues, three pricing and distribution 78 percent reporting that they held a college degree. About issues, and six people and management issues, as well as one-quarter of the respondents held a post-graduate degree. consider customer satisfaction and the extension of RM Technical Issues to other hotel departments and hospitality industries. For each question, respondents were asked to state whether Respondents were asked to use a three-point scale to evalu- they considered the methods to be well established, in need ate the need for improvement in the following six technical of some improvement, or in need of major improvement. aspects: (1) forecasting, (2) optimization, (3) overbooking, They could also indicate that the method or issue was of no (4) group decisions, (5) corporate account decisions, and (6) concern to them. In addition, the survey posed three open- pricing on the following scale: 1 = the method is well-estab- ended questions, addressing major trends, major issues, lished; 2 = the method is in need of minor improvement; and the future of RM. Finally, the survey recorded various and 3 = the method is in need of major improvement. demographic statistics including each respondent’s job I found little difference in the respondents’ ratings for position, amount of RM experience, level of education, and the six technical issues. Overbooking was considered the geographic location. most developed area (average improvement score of 1.75), Demographic Profile while corporate-account decisions (1.93) and group deci-sions (1.90) were rated as somewhat less developed areas. About a quarter of the respondents (26%) served in an ex- Almost one-fifth (18.7%) thought that techniques for mak- ecutive position in RM while just over half (53.3%) worked ing corporate account and group decisions were in need of as a revenue manager. About 21 percent of respondents major improvement (see Exhibit 1). Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 7 n e e d f o r i m p r o v e m e n t Exhibit 2 comparison of Asian and north American views of revenue management technical issues 3.0 Asia north America 2.5 2.0 1.5 1.0 Forecasting optimization overbooking Group corporate pricing business account decisions decisions I did, however, find statistically significant differences average, Asian respondents rated pricing and distribution between responses from Asia and North America (Exhibit issues as needing more improvement (average rating of 1.97) 2).1 Asian respondents were more likely to believe that the than did North Americans (average rating of 1.66). Educa- various technical aspects of RM were in need of improve- tion, amount of experience and job position did not have a ment (average improvement score of 2.05) than were the statistically significant effect on responses. North American respondents (average improvement score Human Resources Issues of 1.73). Given that the Asian and North American respon- dents were similar with respect to education, experience, With regard to the six human resource (HR) issues, respon- and job levels, I suspect that the variations in their responses dents indicated a considerable need for improvement. The occurred because of the slower development of revenue items are: (1) hiring, (2) training, (3) retention strategies, management in Asia as compared to North America. This (4) career path development, (5) department in which RM is matter was not, however, explicitly addressed in this study. located, and (6) RM organization. Career path development Education had a statistically significant effect on at- was rated as the area most in need of improvement (2.31), titudes toward group and corporate account decisions, as followed by retention (2.10), training (2.05), and hiring follows: more educated respondents were more likely to feel (2.03). Forty-two percent of respondents rated career path that these two areas were in need of improvement. In addi- development as in major need of improvement, followed by tion, more experienced respondents and those working in training (30%) and retention (24%). higher-level positions felt that pricing was in more need of Again, Asian respondents rated these areas as much improvement. more in need of improvement than did North Americans Pricing and Distribution (mean score of 2.37 for North America vs. 1.82 for Asia). The top issues for both groups were similar, but Asian Respondents were asked to use the same three-point scale to respondents were more likely to think major improvement evaluate the following three pricing and distribution issues: was needed, particularly in career paths, retention strategies, (1) competitive pricing, (2) rate fence development, and hiring, and training, all of which scored above 2.40 (Exhibit (3) distribution management. Mean improvement scores 4). Once again, education, amount of experience, and job for these three items again were not substantially different. position did not have a statistically significant effect on Competitive pricing was rated at 1.70, rate fence develop- respondents’ view of the human resources issues in revenue ment at 1.82, and distribution management at 1.83. Again, management. though, differences between Asian and North American Customer Satisfaction respondents were statistically significant (Exhibit 3). On In contrast to human resources, respondents indicated that 1 One-way ANOVAs were used to test for statistical significance. All customer satisfaction issues were reasonably well established significant differences presented are at the p < 0.05 level. 8 The Center for Hospitality Research • Cornell University n e e d f o r i m p r o v e m e n t Exhibit 3 comparison of Asian and north American views of revenue management pricing and distribution issues 3.0 Asia north America 2.5 2.0 1.5 1.0 competitive rate-fence Distribution pricing development management Exhibit 4 comparison of Asian and north American views of revenue management human resources issues 3.0 Asia north America 2.5 2.0 1.5 1.0 hiring training retention career Department organization paths location (improvement rating of 1.60), although the disparity contin- need of improvement. Asian respondents saw this as an area ued between Asian respondents, who were more likely to see needing significantly more improvement (2.47) than North this as an issue, and North Americans (1.87 for Asians and American respondents. 1.44 for Americans). Only 5.3 percent of respondents rated Trends customer satisfaction issues as needing major improvement. Extension of RM Practices Nearly 70 percent of the respondents answered the question regarding the latest trends in revenue management. By far The extension of RM practices to other hotel departments the most mentioned trend was the extension of RM into and to other industries was considered to be an area in need other parts of the hotel such as function space, spa, and food of considerable improvement (2.29). Nearly one-third of and beverage (45.6% of all comments). The second most respondents (32.7%) felt that RM extension was in major mentioned trend was improvement in human resources Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 9 n e e d f o r i m p r o v e m e n t n e e d f o r i m p r o v e m e n t Exhibit 5 trends in revenue management 60 50 40 30 20 10 0 customer non-traditional human pricing and technical none applications resources distribution stated Exhibit 6 representative comments on trends in revenue management trend representative comments For Asia Pacific, more application of non-room revenue management (e.g., F&B, spa). The gambit of revenue management would and should eventually include all aspects of revenue earning within the organization—be it hotel, airline, or function space management, as well as non-traditional Applications (49%) balance the cost and revenue output to maintain these centers Revenue management in my hotel is focused on rooms, as other revenue generating departments operate on a smaller scale. However, I think that the trend in general is for revenue management to be involved in other operating departments like food and beverage and spa. Due to the sophistication of many new yield systems and RM tools, plus the analytical and strategic skills needed for a successful revenue manager, the future will see more revenue managers from business and finance majors than from the traditional hotel and travel and tourism programs. hr issues (21%) Lack of talent. Revenue management will be taken seriously in hotel industry, especially the room revenue management, revenue manager position will be also important to the management team. To be more involved in channel management, especially online channels. pricing and Distribution (11%) Moving away from fixed corporate rates to retail rates. Revenue management trends would change in our country as compared to the West as customers are getting used to internet vis a vis making reservation through a travel agent or a mediator. 360-degree optimization, where we manage guest revenue based on their total profitability for a resort. technical (11%) More sophisticated computer models to take the guess-work out of the process. Evolution to more fact-based decisions. Systems’ “friendliness” now exceeds “accuracy.” We need to be more scientific in several areas, forecasting and incrementality in particular. 10 The Center for Hospitality Research • Cornell University percentage of respondents commenting Exhibit 7 issues facing revenue management 70 60 50 40 30 20 10 0 competition customer non- people pricing and technical none traditional distribution stated related activities (18.4%), followed by more of a focus on application of RM approaches to non-rooms departments profit instead of revenue (10.7%) and advancements in pric- was becoming increasingly important and necessary. As I ing and distribution (10.7%). Exhibit 5 shows the percentage explain below, the roundtable participants held similar views. breakout, and Exhibit 6 gives representative comments on By contrast, survey respondents thought technical, pricing, revenue management trends. and customer satisfaction issues associated with RM were Issues Facing Revenue Management considered to be fairly well established or in need of only minor improvement. A similar percentage of respondents (72%) commented on Human Resources Issues the major issues that they see facing RM (Exhibit 7). Hu- man resources issues were seen as the greatest issue facing The four HR issues that respondents said were in need of RM (63.0% of comments), followed by technical RM issues improvement are obviously interrelated (to review, career (13.0%) and economic and competitive issues (11.1%). Ex- path development, training, hiring, and retention strategies). hiibit 8, on the next page, gives representative comments on I will, however, address each in turn. the issues facing revenue management. Career path. Respondents and roundtable participants Future of RM alike commented that most hotel companies have not yet developed a clear career path for employees working in Again, 70 percent of respondents offered projections on the revenue management. This may be partly related to the de- future of revenue management. Just over 30 percent antici- partment in which the position is located and the newness of pate an increased reliance on technology, while just under 30 the RM field. Succession planning (or career paths) is a key percent mentioned that they thought RM applications would human resource issue pertaining to revenue management. be seen in other departments of the hotel, such as function Some roundtable participants mentioned that departments space, spa, and food and beverage. Just under 15 percent such as sales and marketing or finance had well established stated that they thought that the human resources function human resources practices to develop staff and to define of revenue management would evolve into a much more career path opportunities within the organization, but such organized structure (Exhibit 9, on the next page). Exhibit 10, practices seem to be lacking for RM departments. also overleaf, gives representative comments on the future of Consider a property level revenue manager, for instance. revenue management. Clear guidelines are absent on how that person is to progress Discussion through his or her career. The manager could move to a larger hotel, be given responsibility for several hotels, or This study found that the most critical issues facing revenue jump to a regional level job or perhaps even to a corporate management are related to human resources, and that the level position. Without a clear path to follow, it is difficult Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 11 percentage of respondents commenting Exhibit 8 Sample comments regarding issues facing revenue management topic representative comments Personnel! As our data access improves, we need more analytical people than we have now and have had in the past. We need to establish career options, and make the discipline more appealing to non-traditional people. Finding and keeping the best people. People (63.6%) I think that there is not enough training established to become a successful revenue manager. There is basic training through schools, hotel chains, but it’s lacking continued training to truly get your arms around profit optimization. All management within an organization (including hotels) need to understand revenue management and embrace the culture. Some major issues I see are that being able to forecast out further, as well as be able to make the right long term group decisions. Forecasting accuracy. Technical (13.1%) System issues that prevent proactive yielding and accurate forecasting. For example, the need for direct connectivity for tour operators. Optimal mix is a challenge as this is a debatable measure based on market conditions. However, without careful monitoring high revenue displacement can occur. Uncertain economic slowdown and effect on reduced travel and group meetings. Increased competition all bidding on the same group business which may and can cause a driving of the group rate downward. Competition (11.2%) Proper forecasting techniques are required. In a declining economy, with declining demand, it may be tougher for a revenue manager to show an ROI on the position. Revenue management must move beyond just slowing days down when they get busy. Exhibit 9 Future of revenue management 35 30 25 20 15 10 5 0 more competition more non- people pricing profit technology none centralized important traditional and stated distribution 12 The Center for Hospitality Research • Cornell University percentage of respondents commenting Exhibit 10 Sample comments regarding the future of revenue management topic representative comments Technology will be more advanced. The human element to interpret and intervene will remain the same. Automated system with major human influence. More organizations will be using a revenue management Technology Improvements system as it will be more and more affordable. More will be practicing dynamic pricing. (31.0%) Complexing and outsourcing may have to become a serious consideration as RM resources become more scarce and more hotels open. For ease of inter-company transfers, best practices and consistency of tools will have to be improved and more streamlined. RM will encompass all aspects of revenue earnings and growth of the organization. It will be directly answerable and responsible for results Non-Traditional Applications The role of revenue management will continue to expand to catering, restaurants, spas, etc. (30.0%) More hotels realize the importance of revenue management and moving from traditional room revenue management to total hotel revenue management. Revenue management and sales will likely overlap more than it does today. More of a team effort vs. being a single body entity in the business process of the hotel. Perhaps director level; executive level positioning on the management team. Remaining the same: lack of connection to HR Issues (15.0%) the overall guest experience. I believe that the industry is placing a greater emphasis on revenue management whereby it is becoming such a vital role within hotels that revenue managers will soon be considered executive committee members, if they already are not... I think it will be an even larger area for hotels and will help drive more profit to the bottom line. I think it will have even more of a presence than it does now. I think it will become more on the property RM Will Become More Important level rather than some corporate office. I think the key is, whether tomorrow or ten years from now is to (12.0%) have someone monitoring your revenue. Will stay about the same as changes in the hotel industry in general are very slow compared to other industries. However, revenue management will continue to increase its importance. for some revenue managers to plan their career. Some seek management was largely perceived to be focused on num- other job opportunities altogether. bers and driven by spreadsheets and analysis. They further The consensus was that hotel companies need to de- considered that the challenge and importance of the revenue velop several career paths for revenue managers to follow. manager’s role involve analyzing data to make a business For example, one route might be to start as a revenue man- case for recommended strategies and to align the strategies ager at a small hotel, and then to move to a similar position with business goals. They agreed that this job description is at a larger and more complex hotel. The next move would not adequately communicated, nor is it yet appreciated by be to a cluster where the manager would have responsibility executive management, as reflected in remuneration levels. for several hotels and eventually to a regional level posi- Revenue managers have traditionally risen from the tion. Another route might be to start as a revenue manager reservations department, but the scope of the position has at the property level, then become director of sales and then changed and revenue managers now require sound analytic possibly move to a general manager position. Regardless of and leadership skills, including an ability to perceive and the actual steps, it is essential that hotel companies develop adjust to market conditions and to make effective decisions a reasonably clear career path for its revenue managers. Fail- that can be translated into actions. “Revenue managers need ure to do so is likely to lead to the loss of key RM personnel. a level of assertiveness,” observed Greg Albertini, regional Hiring and training. Many respondents mentioned vice president revenue strategy, Asia Pacific, with Marriott how difficult it is to find qualified revenue managers. Round- International. “They need to bring an entrepreneurial spirit table participants discussed at length the attributes of the to the job,” agreed Klaus Kohlmayr, managing director of ideal revenue manager, with the realization that revenue IDeaS Advantage. Given this desired skill set, it is no wonder Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 13 RM professionals believe that the most important issues facing revenue management are related to human resources. that many hotels have difficulty in attracting and keeping developing the revenue managers themselves. Without a qualified revenue managers. systematic approach to addressing these issues, hotels will Based on the study results and the roundtable discus- continue to have difficulty in attracting and retaining strong sion, I believe that the hotel industry has the following three revenue managers and their revenue performance will suffer. ways to attract the right sort of people into RM: (1) develop Extending Revenue Management more and better internal training programs to help develop employees who are interested in working in RM, (2) offer The survey respondents considered the extension of RM to revenue managers higher salaries, and (3) develop struc- other parts of the hotel to be both a great need and a trend. tured career paths for revenue managers. Improved training Given that function space, food and beverage, and spas can help both existing and new employees by giving them provide a substantial amount of revenue to many hotels, it the necessary skills, and educational institutions could focus seems appropriate to apply to these areas the same sorts courses on revenue management to prepare graduates to of RM practices that have been used for rooms. However, take on the challenge of a revenue management position. participants at the roundtable said they were unlikely to Along that line, higher salaries will attract more qualified apply RM to other departments until they had exhausted the applicants for revenue management positions. When solid revenue opportunities available from rooms, since the profit remuneration is combined with improved training and a potential from rooms is much higher than that from food clear career path, the industry should see higher perform- and beverage and meeting space. ing revenue managers and improved profitability. A more Function space. Some chains have begun to develop structured career path will not only help attract qualified function space RM systems that are integrated with room applicants, but should also entice them to stay within the systems. Other hotels have even hired space revenue manag- company. ers to oversee this function. The key with function space RM Retention. Retention is strongly related to the lack of is to measure occupancy and revenue performance of each a clear career path and to revenue managers’ salaries. If a meeting room, gather information on the different market revenue manager cannot see a clear career path, he or she is segments, their booking patterns, and their revenue contri- more likely to seek out other opportunities. In addition, if butions, and to develop appropriate prices and length-of- salary growth is limited, successful revenue managers may stay controls.2 search for and accept other, better paying jobs. Roundtable Restaurants. Restaurants have also begun to use RM. participants thought that the lack of a clear career path ap- As with other RM applications, one of the first steps is to pears to be a contributing factor to the migration of rev- identify peak demand periods and to determine ways in enue management staff to other organizations, as revenue which to maximize the revenue potential during those managers forge their own career paths by seeking new job times.3 opportunities. In summary, hotel chains and hotel managers need to 2 For a detailed discussion on how to apply RM to function space, see: concentrate on addressing the HR issues associated with Sheryl E. Kimes and Kelly A. McGuire, “Function Space Revenue Man- RM. Understandably, the focus so far has largely been on agement: A Case Study from Singapore,” Cornell Hotel and Restaurant acquiring or developing technical systems for using RM. Administration Quarterly, Vol. 42, No. 6 November 2001), pp. 33-46; or Eric Orkin, “The Emerging Role of Function Space Optimisation in Hotel While the technical systems are still not perfect, they are well Revenue Management,” Journal of Revenue and Pricing Management, Vol. developed and are considered by most RM professionals to 2, No. 2 (2003), pp. 172-174. be fairly well established or in need of only minor improve- 3 For a detailed discussion on how to apply RM to restaurants, see: Sheryl ments. What is needed in the future is more emphasis on E. Kimes, “Restaurant Revenue Management,” Center for Hospitality Research Report, Vol. 4, No. 2 (Cornell University, 2004). 14 The Center for Hospitality Research • Cornell University Spas. Another possible extension is to spas. As with Although I tried to distribute the survey as widely as pos- function space and restaurants, the initial task is to identify sible, the sample is self-selected and not representative. busy and slow demand periods and to develop pricing and Survey respondents may be different from those who did not duration controls to help maximize revenue. Spa revenue complete the survey or who never saw it. In addition, some management could take the form of offering higher prices of the respondents may not have fully understood the ques- during peak demand periods,4 reducing the amount of time tions asked of them. Despite these limitations, I believe these between customers, or using price and promotion to build results are of use to RM professionals and to those who work demand for off-peak times.5 with them. Golf. Golf represents another fertile ground for RM Conclusion application. Walt Disney World Resorts has developed an RM system for its golf courses in Orlando, and Troon Golf, RM professionals believe that the most important issues a large U.S. golf management company, uses RM at many of facing revenue management are related to human resources. its courses.6 As with other departments, the first step is to HR issues such as career path development, training, and identify busy and slow demand periods and develop pricing hiring and retention strategies were considered to be in and other strategies for each. For example, a golf course major need of improvement. Over 60 percent of respondents may be able to charge a higher greens fee on busy weekend identified HR issues as the greatest concern for RM in the mornings, may be able to enforce a minimum party size future. Asian respondents thought all aspects of revenue during these times, might decide to use marshals to help management needed more improvement than did manag- regulate the speed of play, or might offer discounts during ers from North America. This difference of opinion over the slow times.7 need for improving revenue management was significant. Study Limitations RM professionals also indicated their belief that revenue management should be expanded to other hotel depart- As with any study, this one is not without limitations. Most ments such as function space, restaurants, and spas. Along to the point, I surveyed only RM professionals, since I was that line, expansion of RM was seen as the strongest RM interested in how they viewed the current state and future trend. Many respondents talked about the need for a more of RM. While non-RM professionals were not included in holistic view of RM. Rather than focus only on maximizing this study, it would have been interesting to see how their rooms revenue, they thought that RM should be used to responses vary from those working in RM. maximize total hotel revenue. Finally, respondents expected that RM systems would 4 Lisa M. Starr “Squeezing the Sponge,” DaySpa, July 2007, pp. 54-62; and become more centralized and automated as RM assumes an Leslie Lyon, “Spa Revenue (Yield) Management,” 4Hoteliers.com, January even larger role within the hotel. This implies that hotels will 2008, www.4hoteliers.com/4hots_fshw.php?mwi=2735. need to continue to invest in both their RM systems and in 5 Ibid. For a detailed discussion on how to apply RM to spas, see: Sheryl E. the RM professionals who manage them. Kimes and Sonee Singh, “Spa Revenue Management,” Cornell Hospitality In summary, RM professionals and hotel executives Quarterly, forthcoming, 2009. 6 should concentrate on improving the human resources ac-“Troon Unveils Management System,” Golf Course News, July 2002; tivities associated with RM and should begin to think about Trent Bouts, “Racking Up,” Golf Business, 2007, how to apply RM to other parts of the hotel. At the same 7 For a detailed discussion of how to apply RM to golf courses, see: Sheryl time, they should be thinking of and investing in ways to E. Kimes, “Revenue Management on the Links: Applying Yield Manage- further automate some of the more routine functions of RM. ment to the Golf-Course Industry,” Cornell Hotel and Restaurant Adminis- I plan to conduct this survey on an annual or biennial basis tration Quarterly, Vol. 41, No. 1 (February 2000), pp. 120-127. to track changes towards RM over time. n Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 15 ExecEdPathAd_chr-2c_ƒ.qxd 12/7/06 9:15 AM Page 1 Cornell Short Courses and Certifications for Hotel Industry Professionals: Anheuser-Busch The General Managers Program The Professional Development Program Tackle strategic hotel management issues and find Study and share experiences with peers from around the world relevant, specific solutions. Work with a global network in these intensive hospitality management seminars led by of managers and top Cornell faculty in an intensive Cornell faculty and industry experts. learning experience. Intensive three-day courses are held on the Cornell University Ten-day programs are held on the Cornell University campus in Ithaca, New York in June-July; in Brussels, Belgium campus in Ithaca, New York in January and June and at in June and at the Cornell Nanyang Institute in Singapore in the Cornell Nanyang Institute in Singapore in July-August. January and July-August. The Online Path The Contract Programs Available year-round, choose individual courses or Programs delivered by Cornell faculty for your company. Many combine courses to earn one of six Cornell Certificates. hotel and foodservice management topics available, both “off Interact with an expert instructor and a cohort of your the shelf” and custom developed to your needs and delivered peers to develop knowledge, and to effectively apply to your management team on the Cornell campus or anywhere that knowledge in your organization. in the world. Complete program information and applications online: www.hotelschool.cornell.edu/execed/chr PHONE: +1 607 255 4919 EMAIL: exec_ed_hotel@cornell.edu 16 The Center for Hospitality Research • Cornell University ExecEdPathAd_chr-2c_ƒ.qxd 12/7/06 9:15 AM Page 1 Cornell Hospitality Reports Index www.chr.cornell.edu 2008 Reports Vol. 8, No. 6 Questioning Conventional Vol. 7, No. 16 Customer Satisfaction Wisdom: Is a Happy Employee a Good with Seating Policies in Casual-dining Vol 8, No. 13 New Beats Old Nearly Employee, or Do Other Attitudes Matter Restaurants, by Sheryl Kimes, Ph.D., and Every Day: The Countervailing Effects of More?, by Michael Sturman, Ph.D., and Jochen Wirtz Renovations and Obsolescence on Hotel Sean A. Way, Ph.D. Cornell Short Courses and Certifications for Hotel Industry Professionals: Prices, by John B. Corgel, Ph.D. Vol. 7, No. 15 The Truth about Integrity Vol. 8, No. 5 Optimizing a Personal Wine Tests: The Validity and Utility of Integrity Vol. 8, No. 12 Frequency Strategies and Cellar, by Gary M. Thompson, Ph.D., and Testing for the Hospitality Industry, Double Jeopardy in Marketing: The Anheuser-Busch Steven A. Mutkoski, Ph.D. by Michael Sturman, Ph.D., and David The General Managers Program The Professional Development Program Pitfall of Relying on Loyalty Programs, by Sherwyn, J.D.Michael Lynn, Ph.D. Vol. 8, No. 4 Setting Room Rates on Priceline: How to Optimize Expected Vol. 7, No. 14 Why Trust Matters in Top Tackle strategic hotel management issues and find Study and share experiences with peers from around the world Vol. 8, No. 11 An Analysis of Bordeaux Hotel Revenue, by Chris Anderson, Ph.D. Management Teams: Keeping Conflict relevant, specific solutions. Work with a global network in these intensive hospitality management seminars led by Wine Ratings, 1970–2005: Implications for Constructive, by Tony Simons, Ph.D., and of managers and top Cornell faculty in an intensive Cornell faculty and industry experts. the Existing Classification of the Médoc Vol. 8, No. 3 Pricing for Revenue Randall Peterson, Ph.D. and Graves, by Gary M. Thompson, Ph.D., learning experience. Enhancement in Asian and Pacific Stephen A. Mutkoski, Ph.D., Youngran Intensive three-day courses are held on the Cornell University Region Hotels:A Study of Relative Pricing Vol. 7, No. 13 Segmenting Hotel Bae, Liliana Lelacqua, and Se Bum Oh Strategies, by Linda Canina, Ph.D., and Customers Based on the Technology Ten-day programs are held on the Cornell University campus in Ithaca, New York in June-July; in Brussels, Belgium Cathy A. Enz, Ph.D. Readiness Index, by Rohit Verma, Ph.D., campus in Ithaca, New York in January and June and at in June and at the Cornell Nanyang Institute in Singapore in Vol. 8, No. 10 Private Equity Investment Liana Victorino, Kate Karniouchina, and the Cornell Nanyang Institute in Singapore in July-August. January and July-August. in Public Hotel Companies: Recent Past, Vol. 8, No. 2 Restoring Workplace Julie Feickert Long-term Future, by John B. Corgel, Communication Networks after Ph.D. Downsizing: The Effects of Time Vol. 7, No. 12 Examining the Effects of The Online Path The Contract Programs on Information Flow and Turnover Full-Spectrum Lighting in a Restaurant, Vol. 8, No. 9 Accurately Estimating Intentions, by Alex Susskind, Ph.D. by Stephani K.A. Robson and Sheryl E. Time-based Restaurant Revenues Using Kimes, Ph.D. Available year-round, choose individual courses or Programs delivered by Cornell faculty for your company. Many Revenue per Available Seat-Hour, by Gary Vol. 8, No. 1 A Consumer’s View of combine courses to earn one of six Cornell Certificates. hotel and foodservice management topics available, both “off M. Thompson, Ph.D., and Heeju (Louise) Restaurant Reservation Policies, Vol. 7, No. 11 Short-term Liquidity Sohn Interact with an expert instructor and a cohort of your the shelf” and custom developed to your needs and delivered by Sheryl E. Kimes, Ph.D. Measures for Restaurant Firms: Static peers to develop knowledge, and to effectively apply to your management team on the Cornell campus or anywhere Measures Don’t Tell the Full Story, by Vol. 8, No. 8 Exploring Consumer 2008 Industry Perspectives Linda Canina, Ph.D., and Steven Carvell, that knowledge in your organization. in the world. Reactions to Tipping Guidelines: Ph.D. Implications for Service Quality, by Industry Perspectives No. 2 Sustainable © Ekaterina Karniouchina, Himanshu Hospitality : Sustainable Development in the Hotel Industry, by Hervé Houdré Vol. 7, No. 10 Data-driven Ethics: Mishra, and Rohit Verma, Ph.D. Exploring Customer Privacy in the Complete program information and applications online: Vol. 8, No. 7 Complaint Communication: 2007 Reports Information Era, by Erica L Wagner, www.hotelschool.cornell.edu/execed/chr Ph.D., and Olga KupriyanovaHow Complaint Severity and Service Vol. 7, No. 17 Travel Packaging: An PHONE: +1 607 255 4919 EMAIL: exec_ed_hotel@cornell.edu Recovery Influence Guests’ Preferences Internet Frontier, by William J. Carroll, Vol. 7, No. 9 Compendium 2007 and Attitudes, by Alex M. Susskind, Ph.D. Ph.D., Robert J. Kwortnik, Ph.D., and Norman L. Rose Cornell Hospitality Report • August 2008 • www.chr.cornell.edu 17 www.chr.cornell .edu