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

Ipads Replacing Restaurant Menu, Staff

By Bruce Horovitz, USA Today

Summary:

This article is about a new food chain: Stacked and how they will be implementing there 3 new restaurants in California all equip with Ipads for their 60 table tops. Using these ipads customers will be able to design and order their meal right on the spot. They will not only be able to design their meal from the ipad they will also be able to order from it too. 

The co-founder of stacked said that they came up with the idea of ordering from your table before the ipad came out. The ipad just confirmed their decision to do it.

There are a few restaurants that have started to use the ipads and have seen a positive outcome. 

In Bone’s restaurant in Atlanta they have used ipads for the selection of their wines and the co-owner Richard Lewis has seen a 20% increase in wine sales. 

In past surveys that made by the national restaurant association has found that younger people between the ages of 18-34 tend to go restaurants that favor high tech gear.

The owners went into detail how they would be mounted to the tables so that they were out of the way and not susceptible to theft.

Reflection:

I think that this is such a cool idea.  I think with the technology era that we are in it is important to incorporate technology in our day-to-day experiences when we are out. I definitely think that Stacked is ahead of the crowd for becoming a trendy restaurant. I also think that these ipads and the concept will become very big in a short period of time. There are many reasons why I think that having Ipads as your menu is cost effective and efficient. I think that it eliminates the cost of having to print a menu all together.  You will also be able to change the menu with the seasons and it will not cost a lot.  Having the ipad eliminates mistakes that might have been made with a waiter.  Not only are your guests able to order on these ipads they would be able to have gaming apps that they could play with there table so that waiting for their food does not seem as long as a wait and it is enjoyable. I am so excited to see what restaurants around Florida try a concept like this, but with the average age so old I don’t know how lucky we will be.

Hospitality Technology Trends Website

http://www.usatoday.com/money/industries/food/2011-02-16-ipadcafe16_ST_N.htm

Marriot Says No To Adult Movies in New Hotels

Marriot Says No to Adult Movies in New Hotels

Summary:

One of the nation’s leading hotel groups, Marriot, has stated they will be removing access to in room adult movies in the next several years.  The decision that was made corresponds with the new in-room entertainment technology for their new hotels.

Marriot is replacing their old menu based selection videos, along with the adult content videos to an internet-based video-on-demand. Technology in the hospitality industry is rapidly changing the decision was based after years of many discussions. The two main topics that were discussed was whether the availability of profitable adult films in guest rooms is appropriate and whether safeguards exists to prevent children from seeing it.

Studies have shown in recent years that revenue from in-room pay-per-view movies has shrunk. The study also implied that the business traveler was chinking into the hotel with their own entertainment; netflix, ipad, laptop, or slingbox.

According to Colliers PKF Hospitality Research, “found that hotels collect 39% fewer pay-per-view movie rentals than they did a decade ago.”

In room movie rentals is becoming a declining source of income for hotels. Researchers think that by providing the family friendly image of the hotel will help create a positive image of the brand. Omni brand hotels have been adult film free since 1999 the ownership made a stance and stated, “That is not how we want to make our money.”

Reflection:

I really found this article intriguing. I thought that pay-per-view was a good source of additional revenue per room.  I know that with the rapid rate in technology becoming mobile, the in room technology is dying. I really recognized it after I read this article and the statistics from the Collier PKF Hospitality Research.

I think by implementing the new web based video on demand will be the new face of in-room entertainment. Even though we are able to bring these small devices to watch our own movies on I think that guest would spare a few bucks to watch it on a 32’ flat screen. 

The idea of going porn-free with Marriot is a great idea. I think that promoting a family friendly image would be quite more profitable. I also think it is another marketing approach that Marriot could take.  If you really think about it there are no hotels that market to their audience that they have in-room adult entertainment. I think you could really market the family friendly environment and play off that.

I think that Marriot is making a good decision to remove adult film in room pay-per-view. I think they could profit greatly just by remarketing the new on-demand video they will be providing.

http://www.usatoday.com/money/industries/travel/2011-01-21-hotelporn21_ST_N.htm

Wow Bao Sets Path for Mobile Success

Wow Bao Sets Path for Mobile Success

         Summary:

Since Wow bao has introduced its mobile initiatives, at the 2010 National Restaurant Show, Wow bao have experienced positive responses form its mobile platform.  A market research firm Nielsen, “predicts that by 2014, 142.1 million consumers approximately 53.9 % of American mobile phone users will be accessing the Internet via mobile browsers.”  This is what called for the mobile platform initiative.

Wow Bao recognized this and thought it would be smart and proactive to add mobile engagement to their customer innovative technologies. They also have decided to go with online ordering and in-store kiosks.  They also partnered with Mocapay , “a mobile consumer engagement platform,” to enable its Asian fare restaurant.  What this platform provides is exclusive offers and secure-payment options for the menu items. The company that Wow Bao chose provided flexibility and scalability; it was also an inexpensive offer.

Wow Bao utilizes Mocapay to strengthen customer loyalty, engage customers; Mocapay has also enabled Wow Bao to directly issue comp cards in real time. This great mobile platform also creates, monitors and measures mobile marketing campaigns in real time. Which helps Wow Bao receive important feedback such as redemption rates and purchasing behavior, on top of finding their target customer.  They feel that adding this mobile platform has expanded their business and they are able to provide better customer support.

Reflection:

I think that this article was great because I learned about new technology that can be accessed right now to help current restaurants. The mobile platform is such an awesome idea. The numbers don’t lie; the rate that mobile phone users and Internet users from there phone is rapidly growing. I wish that more companies could read this article and get on it. I am in the tech savvy generation and I like the idea of ordering my food right from the app on my phone and even paying for it right there.

The only place that I have seen this particular platform was at Chipotle. I have the app I place my order what time I want to pick it up and my credit card info and I am ready to go. Besides the promotions and deals that the article was describing I think it gives leverage to those restrants that already have a mobile platform. I know for a fact I think about ordering Chipotle for take out 9 out of 10 over another restaurant just because the convenience. I don’t only think that it is convenient for the customer I also think it is convenient for the business to. You are avoiding major take out line when all the food is pre-ordered and pre-paid for. I think if more restaurants did this it could be extremely profitable to your company.

Alexander,Geoff, Managing Partner, Wow Bao. Wow Bao Sets Path for Mobile Success.Hospitality Technology. 1/18/2011. http://hospitalitytechnology.edgl.com/top-stories/Wow-Bao-Sets-Path-for-Mobile-Success66076