Kimes Sheryl E. and Chase Richard B.
Journal of Service Research
In Revenue Management the biggest emphasize is on RevPar which is a function of ADR and Occupancy. The RevPar metric become popular because it’s easy to calculate and compare. However, the lack of complexity also creates some pitfalls, which are described below. The need for more complex method created a new metric called GOPPAR (Gross Operating Profit Per Available Room). In following article I will explain the mathematics and advantages of this metric.
This is the most important article I’ve analyzed so far and I strongly recommend it to read it. Based on 4,000 hotels in Europe and 10 year period, the authors proved that hotels achieved higher RevPar when they positioned their ADR higher that their direct competitors. Moreover, the consistent relative pricing over time didn’t affect the RevPar what means that variable pricing which is the core principle of nowadays Revenue Management is questionable.
Cathy Enz, Linda Canina, Jean-Pierre van der rest
The Center of Hospitality Research. Cornell University.
The following report provides a financial analysis of Intercontinental Hotels Group (IHG). Suitable ratios regarding profitability, liquidity, efficiency and gearing have been calculated and compared vis-à-vis one of its major rivals, Marriott International in order to provide an understandig of IHG’s relative financial position. Secondly, the report provides a discussion regarding some of the shortcomings of IHG’s financial statements from an investor’s point of view and highlights some of the non-tangible considerations that should be taken into account when investing in the hotel industry. Finally, the report puts forward conclusions stemming from the above mentioned sections.
The reason why I didn’t analyze any new articles in the past few weeks is fact that there were some mayor changes in my life. I changed my job, I changed the country and I even changed my religion All of those matters are somehow interconnected and all of them hardly affected my future. Fortunately, in the good way.
From Sep 1st I became Sales&Revenue Analyst for EMEA region for Hilton Worldwide. I moved to England and I became Buddhist.
However, none of those affected in any negative way my interest toward Revenue Management and I am going back to reading and analyzing interesting pieces of academic knowledge.
I hope this blog will grow and will be more popular in the future so I could gain some feedback from the readers.
I decided to develop myself and learn SQL what I believe is a desired skill for Revenue Analysts. Therefore I will not be able to analyze any new article for the next two weeks.
Afterwards, I will create and post some procedures (SQL code with explanation) that will help your hotel in accessing and analyzing data from your Property Management System.