What's the Secret to Omni's 10-Year, Record-High RevPAR?

Summary:  As the online market continues to expand rapidly hoteliers are having to find new innovative ways to implement revenue management strategies. Omni hotels and resorts have been able to implement these new techniques and have seen the conclusive positive results.

Omni noticed a reduction in business travel and had to change their rates to keep competitive in 2010 they reduced discount rates, which improved their overall ADR dramatically.  Omni owes it all to the revolutionary revenue management system from The rainmaker group, which helped Omni to achieve a record high RevPar index. Omni found that other systems utilize a broader price-setting process to recommend the most competitive rates, but Rainmaker’s solution is more micro-focused.

Omni has installed this management system brand wide. Each of the Omni hotels is equip with a revenue management team that is familiar with the system. They work with it to make sure they are capturing as much rate as possible. Lesli Reynolds, VP of distribution systems and revenue strategy for Omni Hotels & Resorts, states that they are now able to make data based decision not gut based.  With this revenue management system in place they are able to maximize and capture RevPar everyday of the week.

Reflection: I think this revenue management system is incredible. I would recommend every hotel brand to look for systems like this to implement into their hotels. Having a group of skilled revenue management individuals with this system could make your hotel extremely profitable and there would be no money left on the table.

I like the idea that in the article Lesli Reynolds describes that the revenue management team is no longer making the gut based decisions. They have all the data and numbers from previous weekends and seasons, to base the RevPar on. It is no wonder they hit a record high. I think that the systems will become more and more popular and other brands may catch on but not quick enough. I think that this is a big trend that we should start top see in the near future.

I can’t believe that they are able to capture a large amount of RevPar everyday of the week even on Wednesdays.  I am really looking forward to seeing more companies like The rainmaker group come out and see what other types of information these systems will be able to gather to help increase the ADR for these hotels.

http://hospitalitytechnology.edgl.com/news/What-s-the-Secret-to-Omni-s-10-Year,-Record-High-RevPAR-70755