Global Asset Solutions · 22 Jul
With the advent of the 'new normal', hotel owners and operators must begin considering the various financial and operational scenarios in their forecasts extending into 2021. Accurate forecasting is notoriously tricky, even in "business as usual" scenarios. Often, some operators need more pressure to deliver detailed break-downs forecasts, and they rarely extend more than three months in the future. The objective of a forecast plan is to ask the hotel operator to propose tangible actions: to increase the performance of specific areas of the hotel, to manage the production of the personnel, to schedule productive activities, and to increase customer satisfaction.
Global Asset Solutions · 17 Jul
As hotels begin to re-open, it is crucial that they're mindful of their Break-Even Point (BEP) to understand their cost levels and to determine what RevPAR level is necessary to re-open. COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the breakeven threshold.
Global Asset Solutions · 3 Jul
Global Asset Solutions and Origin World Labs present a study for hoteliers, revenue managers and owners with key market trends by region for Summer 2020. As hotels begin to re-open, revenue managers need to decide their pricing and rate strategy. As there is no historical data to refer to, revenue managers will need to pay attention to their entire market and look beyond their comp set.
Global Asset Solutions · 25 May
Three weeks ago, Marriott International announced they had experienced a data breach, putting the personal data of 5.2 million guests at risk (1). While this number dwarfs in comparison to the data breach of 500 million Marriott and Starwood guests in late 2018 (2), the message is clear: hotels are a target for threats and need to focus on protecting their employees' and guests' data. With the advent of COVID-19, your company's cybersecurity is at higher risk. As employees worldwide switch to working from home, the dangers associated with mobile devices, remote access to core business systems, and poor online practices are increasing. Meanwhile, as seen in Figure 1, hackers have been heightening their malicious efforts knowing that businesses are more vulnerable now (3).
Global Asset Solutions · 11 May
Our industry is currently at a standstill. There is no previous precedent, no historical data to refer to. Revenue Management (RM) systems do not have reliable data to process: they will not work. Most of your positions as Revenue Managers probably did not exist yet during the 2008 Financial Crisis. And you did not expect to handle nor know how to deal with a crisis of this extent. How do you move forward? How can a hotel use RM effectively in a market with little supply and nearly no demand? Here is the solution.