LETAP Management
A Division of LETAP Hospitality, LLC

Revenue Development

Today the key to room revenue management is to have a comprehensive
understanding of demand AND all electronic distribution channels.

By having this understanding and the ability to execute a strategy you will allocate room
supply to the right people, at the right time and… at the right optimal rate.
This will result in a much more efficient method of selling rooms and driving revenues.

As the demands in this area continue to grow and evolve, it becomes more apparent that
it is not feasible to handle revenue management via human assessment alone. At some point
a computer system needs to be part of the equation.
But …revenue management will always be both…an art and a science, requiring
both expert human resources and advanced technological systems to maximize profits.

This is what our Director of Revenue Management does:

• Drives top line growth and enhances bottom line profitability
  

• Determines how to maximize performance in electronic distribution channels
  

• Oversees all Central Reservation Office and property management systems.
  

• Optimizes prices and allocates room availability to reflect shifting demand.
  

• Ensures acceptance of the most valuable business.
  

• Accurately predicts demand for future dates.
  

• Determines the proportional mix of market segments within overall demand.
  

• Determines what lengths of stay should be available to each market segment for every
  upcoming arrival date.
  

• Focuses on demand that is much stronger or weaker than expected during our most
  critical booking periods.
  

• Determines how different kinds of special events change demand.
  

• Decides whether a group booking should be accepted for future dates when no other
  rooms are reserved yet.
  

• Determines a guest’s value to our business when room rate is less important than other
  factors.
  

Today… we practice a traditional form of revenue management which is focused on the day-
to-day responsibilities which include the fundamentals of revenue management -forecasting,
unconstrained demand assessment, inventory management, displacement analysis and
distribution strategies such as channel management.
That approach takes a narrow point of view of revenue management that includes…
only ONE point in time and ONLY on room Rate to increase revenue to increase RevPAR.

In the future… what we believe could be a better approach is to use a more liberal form of
revenue management which focuses on the concept of one-to-one management.
Simply put this means that if we had a means to identify the guest or client that would bring in
the most revenue overall and work on the concept of revenues per available guest RevPAG.
Then we could create offers based on the value of each individual customer.

The ideal result of course would be that we would enjoy even higher revenues than today’
traditional approach.

At present expect us to obtain the best possible revenues for each of our hotels. And expect
us to solve the puzzle on how to push the “threshold” to even higher levels of achievement.