Post on 19-Feb-2017
ofvv
Visionary Leaders Roundtable
Singapore November 17, 2015
DRIVING FUTURE GROWTH &
PROFITABILITY 2020
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
1 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Global events, market disruptors, and new industry alliances are all issues that are requiring
travel industry executives to constantly re-evaluate their plans to manage during uncertainty and
plan appropriately in preparation for future global tourism demand.
The Institute for Hospitality and Tourism Education and Research (IHTER), a division of the
Chaplin School of Hospitality and Tourism Management at Florida International University
(FIU) set its sights on addressing key issues faced by the hospitality industry by organizing the
3rd Edition of the Visionary Leaders Forum in Singapore.
Held on November 17, 2015 at Pan Pacific Singapore, this exclusive ‘invitation-only’ event
brought together senior hospitality leaders to speak candidly about the persistent issues that have
profound impact on their ability to stay current, competitive and profitable.
A unique aspect of the Visionary Leaders Roundtable (VLR) is the way in which participants are
engaged to help shape the agenda by identifying the topics for discussion. This collaborative
approach ensures that focus is placed on key industry issues of high interest to our participants
and the industry at large.
Coming together to brainstorm ideas for Revenue Optimization, the executives were separated
into three investigative groups. Each group was in turn tasked with exploring one of the three
assigned topics while guided by a moderator:
• Topic 1: Driving Growth through Better Customer Insight and Analytics, moderated by
Jameson Wong, Director of Business Development, Asia Pacific – ForwardKeys
• Topic 2: Direct Distribution vs. Third-Party Options - The Battle for Direct Sales,
moderated by Mike Hampton, Dean - Chaplin School of Hospitality and Tourism
Management, Florida International University
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
2 DRIVING FUTURE GROWTH & PROFITABILITY 2020
• Topic 3: Optimizing Profits from Total Revenue Management, moderated by Patrick
Andres, Managing Director, Asia Pacific - Rainmaker
This white paper delivers key outcomes on the issues and opportunities discussed within the
robust forum created through the Visionary Leaders Roundtable.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
3 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Driving Growth through Better Customer Insight and Analytics
The timing of the Fall 2015 Visionary Leaders Roundtable happened to coincide with the
announcement that Marriott International would be acquiring Starwood Hotels and Resorts and
the ensuing speculation about what such a merger would mean to Starwood’s robust loyalty
program, which undoubtedly brings with it a vast amount of data on its membership.
The leaders brought together to explore the topic of “Driving Growth through Better Customer
Insight and Analytics” came from a cross-section of areas within the industry – hotels, resorts,
cruise, and gaming. Facilitated by Jameson Wong, Director of Business Development, Asia
Pacific, ForwardKeys, the group’s conversation started with the simple question - “Do you think
one can shift to a proactive stance when it comes to using data?” The answer was not quite as
simple.
Key Issues and Opportunities It’s not just about the competition, trying to keep up with ever changing consumer expectation is
a real challenge. Consumers are not static, they are always changing as is their behavior, making
it hard to predict and anticipate. Imagine having customer data that can detect a behavior pattern
and predict future booking, buying and spending behavior. Or customer insight and data that
helps to predict future demand to enable pricing decisions irrespective of capacity.
Having deep customer insight that the hospitality and tourism industry can act on today and use
for forward planning is crucial. However, whereas the executives of this roundtable group
acknowledged both the access to and value of consumer data within their respective companies,
much of the concern came from the shared sentiment that they are not necessarily using all the
data they have available across the different departments, and that departments are not looking at
data in the same way. The roundtable group agreed that the use of analytics is not being
embraced as it could be.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
4 DRIVING FUTURE GROWTH & PROFITABILITY 2020
The executives in fact posed several questions among themselves as they delved into the topic,
including:
• How do we demonstrate what insights and analytics can do for the industry or for my
company?
• How do we get a grip on so many moving parts in order to have an integrated and holistic
view of the customer?
• Where within the organization should the management of such data reside?
Overcoming Silos and Mindsets?
The general trend has been to collect and analyze data to try to
make sense of past history and patterns. Access to real-time data
across multiple interactions including customer call centers,
emails, surveys, website visits, social media, mobile apps and
guest feedback has enabled analysts to gain insight and
understand the customer enough to build predictive models that
forecast the needs and behaviors of their guests.
However, one of the challenges the group identified is getting
organizational buy-in in order to optimize such analytics and insight.
The group explored three recommendations for communicating how critical such buy-in would be:
1) Involve the operations team and engage non-revenue staff.
2) Build a business case for the units to understand what it is worth to the company.
3) Provide user-friendly tools and appropriate training.
An example involving housekeeping illustrated how different experiences can be tracked and delivered.
Operational teams, strongly supported by training, demonstrate and impart their importance to the
organization. Emphasis on integration within the operations team would require the use of tools and
avoidance of any a manual process in order to make such data collection and/or delivered customer
experience one of ease.
“It’s not clear what we are wanting to do with
all this data…
Figuring that out is a start .”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
5 DRIVING FUTURE GROWTH & PROFITABILITY 2020
The need for acceptance and training among department heads and leaders was also highlighted. One of
the participants shared a best practice in that member of the senior management team within his/her
particular organization have to be advocates in a demonstrated effort to break the silos.
Complexity of Data and Making Sense of It While working with credit card companies to drill down to identify high spenders, one of the executives
noted that with so much data at hand, it is now difficult to determine what data is useful and how to use it.
Given the design of the roundtable, it is not surprising to find such openness among participants.
Very basic data was identified
as important to collect; these
include:
• Quality email addresses of people who have opted in, plus the related value and date of
contact
• Geographic location/city of guests
• Total value of the guest.
“In identifying the most valuable data and to understand who the most profitable target customer segments are for the organization, you first determine the desired
business outcome, define where the revenue is coming from, and then work one’s way from there.”
“Even as organizations grapple to identify how best to mange and use data they own, the group was not hesitant to share that they still lack data on their own guest who
book through traditional and online travel agencies (OTAs). To drive onboard revenue, cruise lines extend targeted offers onboard in the jewelry, liquor, clothing, and sundries shops. The opportunity exists for them to start shaping the experience of the guest’s
trip before he/she is onboard thereby making it a more personalized experience. When travel agents have booked the guests, cruise lines do not have key data points and
are unable to utilize this information. Hoteliers have also identified similar shortcomings when guest book through OTAs.”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
6 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Beyond Transactional Data, Guest Data is Crucial Information to Understand
The group acknowledged that the technology already exists to understand the data and support
decision-making to cater to an ever-more complex sales, and operations matrix. “As Directors of
Revenue Management, we are not report writers, we’re story tellers” shared one of the
participants. With a move away from standard reporting, they want to see more user-friendly
dashboards that graphically report company, and customers’ stories. These dashboards highlight
the whole customer journey and identify key profit touch points. Highly visualized and
customized dashboards support a continued commitment to breaking down silos for other
departments in order to everyone achieving the same goals.
The Action Plan
Assuming that everyone is turning data into insight, these actions require commitment to the
steps that will have actual revenue impact. The suggestions below list actions that incorporate
what some leaders are already doing within their organizations:
1. Identify the top 3 drivers to impact revenue and loyalty.
2. Create teams that use the data and work with all the stakeholders, ensuring that they are
multidepartment/cross-functional teams.
3. Establish a process that ensures all negative feedback receives quick 100% response.
4. Build Key Performance Indicators (KPIs) for deployment at property level to engage the
teams.
5. Place value behind actions.
6. Define and communicate next best actions, particularly for the operations team.
7. Incorporate dashboards that report only what are important to each unit head.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
7 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Direct Distribution vs. Third-Party Options
The Battle for Direct Sales
Hoteliers today need to be more than just excellent hosts to their guests. No longer can the
importance be focused solei on services and amenities that delight to encourage return visits. In
this digital age, successful hospitality companies must be deeply connected and entrenched in the
digital ecosystem where travel distribution thrives. Navigating the ever-changing digital
landscape is increasingly complex for many hospitality brands, but for online travel agencies
(OTAs) and third-party digital marketers, it’s business as usual.
The leaders of this discussion topic, facilitated by Mike Hampton, Dean – the Chaplin School of
Hospitality and Tourism Management at FIU, engaged in a lively group discussion and
acknowledged the current state of the hotel distribution scene and the role OTAs play in the
distribution landscape.
In discussing the hard truths - the challenges to keep pace with the speed and savviness of OTAs
in exploiting technology and customer insight to reach consumers at opportune moments and
then using of effective messaging to influence buying decisions - executives in this group
identified several key issues and corresponding opportunities for hoteliers to think about and act
on.
Key Issues & Opportunities
Create Customer Value in the Digital Age
Hoteliers are finding it harder to justify the increasing costs of doing business with OTAs. The
‘Billboard Effect’ alone, which is the marketing and advertising benefits that hotels experience
when they are listed on online travel agencies is no longer sufficient. Some industry insiders
would even argue that the ‘Billboard Effect’ is dead or at best, a diminishing value proposition.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
8 DRIVING FUTURE GROWTH & PROFITABILITY 2020
As hoteliers work to level the online playing-field with OTAs, the bigger issue and opportunity
lies in the way in which we engage customers across the multiple channels and customer touch-
points, regardless of the channel in which they started their journey, or whichever channel
through which they have ended up booking.
The executives emphasized that hotels must rethink their distribution strategy and leverage omni-
channel marketing that considers all forms of both traditional and digital content marketing to
provide a seamless brand experience. This marketing strategy should use various communication
platforms, including social networks and mobile devices.
Differentiating the Brand.com Experience
How do hospitality brands level the playing field and gain back more control over distribution to
own the customer relationship in the long-term?
It was acknowledged that OTAs have extensive funds to support aggressive advertisement
expenditures both digital and traditional to drive booking activity. Hotel brands however, should
be positioned to offer distinct advantages beyond price for customers booking direct.
In most instances booking directly with a hotel via phone or website, offers consumers ease of
receiving loyalty points and special treatment, also direct recourse in the event of an issue. A
brand’s website should be the most cost-effective distribution channel that also preserves rate
integrity and customer loyalty.
Commanding Mindshare In the digital age, probably the most effective way to compete for consumers is to ensure that
every encounter with the brand is reinforced and aligned with distinguishing features of the
brand experience to build strong connections with consumers. With an omni-channel approach, a
customer’s journey should be fluid and effortless. Supported by systems and technologies, the
brand’s customer experience strategy should be focused on streamlining and simplifying the
customer experience, thereby making it easy and pleasant to do business with.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
9 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Taming Rising Customer Acquisition Costs A driving force for many hotels is to transfer a portion of business from OTAs and third-party
sellers to direct sales. This is less about shifting share and more about being profitable in the
midst of rising commissions and distribution cost. Commissions paid to OTAs and third-party
sellers in Asia can be as much as 25% or more for some independent hotels and smaller hotel
groups. At this rate, coupled with rising labor and real estate cost, running a profitable hotel
business can be a huge challenge.
Given the pressures to control hotel distribution cost, a question raised during the roundtable was:
“Can an alternative compensation model based on value not volume work for hospitality brands
and could this be a positive approach for collaborative channel partners who deliver value-based
bookings?” Given that this topic requires a deeper discussion and more time to deliberate, it will
certainly be one that continues to be explored through other Visionary Leaders programs.
Distribution Strategy: A C-Suite Talking Point?
Another pertinent question raised by this group was: “As rising distribution costs threaten a
hotel’s ability to deliver profits to owners and stakeholders who built the asset and bear the risk,
should distribution strategy be a regular topic on a C-Suite agenda?”
The group was not able to walk away with a definitive answer nor recommendation; however,
they did emphasize the need to provide ongoing education to its executives throughout the
organization on the travel distribution landscape and hotel distribution strategy.
“If indeed the ‘Billboard Effect’ does exist, having a positive brand experience will surely be a winning strategy
to capture returning customers.”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
10 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Stand Your Ground and Protect What’s Yours The rising cost of customer acquisition and the commanding presence of OTAs are being dealt
with in a bold and brave manner by some hoteliers. Executives in this group shared examples of
hotel companies in Asia who did more than push back when they were not in agreement with an
OTA’s practices. In one case, on discovering that the pricing on a major OTA’s site for hotels
located in a popular resort city in Asia was actually lower than the hotels’ very own websites, the
hotels chose to close-out their inventories to send a strong message to the OTA that quickly
addressed the issue and remedied the situation. Another hotel group, of 200 plus properties,
made it clear that as a practice they would limit OTA bookings and only sell through them on
their terms. Because their hotels were in high-demand locations, the OTA had little choice but to
comply to have inventory in these cities to sell.
These stories of hoteliers who stood their ground to protect their investment and profits may be
rare and extreme, but it does beg the question: As hotel operators and owners of real physical
assets, do you have enough clout to demand better business terms with OTAs and third-party
sellers to improve profits?
The Path Forward: Focus on the Customer, not just Channels
While the competition for direct sales continues to intensify, OTAs continue to strengthen and
grow their share of online hotel bookings through acquisition, savvy marketing and clever use of
technology.
Just as the title of this discussion topic suggests, the travel marketplace can be perceived as a
battleground with hospitality brands facing off against OTAs in an effort to gain back more
control of distribution to protect their rightful share of customer direct bookings and profits.
Whether it is competition with other brands, OTAs or third-party sellers, the group reinforced
that the focus should be on the customer and customer’s booking preference. Customers, like
brands, have their own unique style and distinction. Focusing on what makes them valuable as
customers and how to appeal to them throughout their customer journey is emphasized as key.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
11 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Optimizing Profits from Total Revenue Management
The executives on this topic also came from a cross-section of hotel categories: full-service
luxury; 5, 4 and 3 star properties; limited service brands and integrated resorts with casino
operations.
Patrick Andres, Managing Director, Asia Pacific – Rainmaker who facilitated the group
discussion on ‘Optimizing Profits from Total Revenue Management’ (TRM) began by asking the
executives where they believe the industry in Asia is in terms of total revenue management
practices. The group gave the industry a rating of 2-3 (5 being very good and in control and 1
being new to the concept), but said that it really does vary, with upscale hotels showing better
progress in applying TRM, while casino/integrated resorts are further ahead.
When asked if 2-3 is a considered good the general consensus was, while there is still much to be
done in the area of TRM in Asia, the industry is moving forward and involving more people
from various departments to join the effort to optimize revenue.
Key Issues & Opportunities
Unlocking the potential of TRM through collaborative team effort
Getting ‘all hands on deck’ to pull together towards a common goal takes a great deal of
coordination and continuous education to keep everyone in sync and aware of how their roles
and the decisions they make impact the bottom line. As stated by the executives, the industry
continues to take steps in a move towards driving TRM within their organizations, and by
incorporating into the mix more revenue streams to be optimized.
“I am spending more time teaching colleagues how to prioritize their time and effort, and providing training and education on the impact of their daily decisions.”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
12 DRIVING FUTURE GROWTH & PROFITABILITY 2020
As TRM requires finding the most profitable mix of business and customers segments for the
entire hotel and measuring total guest spend, maximizing profits across the entire asset is the key
objective. The push factor to adopt TRM is driven largely by Asia’s high real estate development
costs and owners’ expectations for an optimal ROI.
Adding Meetings & Events Into the TRM Mix
Revenue management for Meetings & Events was
acknowledged by the group of executives to be a
problematic area in Asia due largely to having
insufficient quality data for analysis. While
historical data identifying booking patterns and
how business from corporate meetings and events are trending does exist, it is difficult to make
big decisions because the existing dataset can be is relatively small.
Optimizing profits from group segments with meetings & events may be the next area of focus
for many following food & beverage (F&B). Since many hotels in Asia are typically built as
large, full-service hotels, with ample meetings and events space, more attention and effort to
bring group and meeting space revenue management into the practice of TRM is inevitable.
The Role of RM in Future Hotel Development Projects In 2013 during the inaugural Visionary Leaders Roundtable session, the executives discussing
TRM stressed the need to involve Revenue Management teams in the early stages of hotel
development, enabling them to provide greater leverage to hotel operators and owners. The
discussion at that time centered on trends in mixed-use development and the various life cycles
of a hotel property. It was noted then that thinking about revenue optimization should begin at
the genesis of the hotel development itself.
“Beyond guest rooms, food & beverage revenue management is now becoming more commonly practiced according to the executives in this discussion group.”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
13 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Often by the time the Revenue Management teams are brought into the picture, it is too late for
input, as commitments have already been made to the type of hotel that is being developed. In
the past, they were simply presented the hotel and given the mandate to manage and optimize the
revenue. At the 2015 roundtable however, it was encouraging to hear positive examples of
Revenue Management executives today being consulted on various aspects of proposed hotel
development projects, including hotel restaurants and function space.
It is important to note that while we are seeing more Revenue Management executives being
invited to share their thoughts on future hotel development projects, not all are equipped with the
level of knowledge in this particular area to make a credible contribution. Also, as revenue
management becomes more involved during the early-stages of hotel development, there will be
corresponding accountability for insight being shared.
Convergence, Coherent Communication and Collaboration
The group felt that before we can truly
optimize profits across all revenue sources,
there are fundamental issues that need to
be addressed:
• Revenue management (RM) is rapidly evolving in Asia Pacific and getting more complex
with the explosive growth of online distribution and channel partners. Because of this, we
are seeing the convergence of sales, marketing and revenue management. So in this
scenario, where should RM sit in the organization?
• As the discipline of RM matures with more RM executives reporting directly to General
Managers and CEOs, will the Director of Revenue Management of the future be more of
a strategist and business consultant to the organization by asking the right questions and
providing needed information/recommendations on areas for improvement?
“Revenue Management (RM) has been stuck in the back office for too long, and now we need people in RM with credibility to sell the value of RM to optimize profits.”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
14 DRIVING FUTURE GROWTH & PROFITABILITY 2020
There was consensus that not all RM executives are ready for such an elevated role and that
different organizations may require a different reporting structure depending on a number of
factors including, the company’s culture, leadership style and existing talent. They also felt that
there is a need for revenue managers who are more commanding, yet collaborative and
persuasive communicators to inspire change. Aside from better qualitative consumer insight and
tightly integrated technology and systems, the real challenge and opportunities also lie in the
development of corporate culture and changes in organizational mindset that support
profitability.
Old Habits Die Hard – Replacing the old with the new
With rising distribution cost shrinking hotels’ profit margin, the executives engaged in a lively
discussion on contributing factors that can harm or help to improve profitability. The growing
share of business from OTAs was said to be adding more pressure to realize higher profits.
Although breaking any habit is difficult, it
can be done. It starts with a change in
mindset of the people involved and the
conditions that encouraged this type of
practice in the first place.
Forming New Progressive and Proactive Habits and Practices:
• Keep up with fast developing ‘game-changing’ trends – search, social mobile and
channel convergence
• Leverage Online Reputation Management and semantics analysis for pricing decisions
• Implement robust demographic segmentation and buyer behavior analysis to personalize
offers and target profitable customer segments.
“ Over-‐dependency on OTA business was described by one participant as being like a drug. Starts out as a ‘quick fix’ to fill rooms in desperate moments, but left unchecked you can get hooked, lose control
and open the doors to adverse consequences”
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
15 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Changing Mind-Sets and Orchestrating a Win-Win Internal Relationships While there is still more work to be done to unlock the full potential of TRM, success stories are
emerging.
One executive stated that, “Where we have been successful is, in not just looking within each
department in isolation, but in coming to terms with what’s best for the whole organization”.
This is a very healthy perspective that if adopted throughout the industry, we should see a
transformational change in attitudes, behavior and profits.
Moving from TRM to Total Profitability Management
Just as the industry starts to make headways in TRM, a new “buzz word” according to one of the
participants is being suggested. Total Profitability Management (TPM) shifts the focus to the
bottom-line and profits for owners, asset managers and hotel operators.
Profit, according to the Encyclopedia Britannica, is defined as "the excess of total revenue over
total cost during a specific period of time." In economics, profit is the excess over the returns to
capital, land and labor (interest, rents and wages). When we focus on profits, it does not negate
the value of top-line revenue, but it does add another dimension to how we assess the value of
our customers.
Driving Customer Value, Engagement and Loyalty
In Customer Relationship Management (CRM) knowing your customer is key and having good
data, insight, and information is vital. Information you can act on to drive performance is the
lifeblood of any business and that goes double for business in the digital age.
Asked if they had deep knowledge and understanding on the total value of their customers,
where they come from, what their buying preferences are etc.…would that fundamentally change
their attitude and approach to RM today, the executives agreed that having better customer
insight would help them make better decisions on the type of customers to target for acquisition
and tactical campaigns. They also felt that having a single point access to customer
demographics, spending preferences and purchase history from various data repositories (PMS,
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
16 DRIVING FUTURE GROWTH & PROFITABILITY 2020
CRS, POS, CRM, etc.) that is fully integrated into a single platform from which to create
customer profiles would be extremely valuable, but is currently lacking.
Implementing CRM strategies and initiatives like loyalty programs alone will not deliver
dramatic improvements in profit. If done correctly, it will have a positive impact on the bottom-
line because you will know the value of each customer, which in turn can help to allocate the
appropriate amount of resources (time, money, people and effort) to extract the full potential
value of that customer relationship.
How Can We Accomplish More With Less?
An underpinning issue that this group raised throughout the session was centered on the critical
need to be more strategically focused on areas of priority. Capital and labor are costly and
increasingly scarce, while we can make more money, we can’t make more time. Productivity
gains are vital to improve the bottom-line. We also need to be more focused and prioritize what
we can do to drive better results with limited resources. The question then would be, where could
we strip out wasted effort that benefit just a few, and relocate it to other areas with potential to
drive the multiplier effect?
This is an excellent question that needs more time to explore in greater detail. It’s definitely a
topic in itself for future programs and forums produced by FIU.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
17 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Conclusion
Change is constant, and this was reinforced at the 2015 Visionary Leaders Forum held in
Singapore. The topics discussed this year were; Driving Growth through Better Customer
Insight and Analytics, Direct Distribution vs. Third-Party Options - The Battle for Direct Sales,
and Optimizing Profits from Total Revenue Management. All of these topics focused on how
information is constantly changing and we as revenue optimizers need to look towards the future
and be ready for the changes. Revenue management in the Asia Pacific market is rapidly
changing and maturing with new online distribution, channel partners, and the RM’s reporting
relationships.
The role of revenue management worldwide is also changing and expanding. The revenue
manager’s role is not just to create profits for the company, but also to create value for the
customer to maintain relationships and earn repeat business. Customers expect more value for
their purchases. Revenue Management is not just the job of the few but also the job of all. The
increased use of total revenue management and now total profitability management by hoteliers
means that now the non-revenue management positions including operations are responsible for
revenue generation and increased customer value. There are roadblocks though, analytics and
insight is only as good as the data we receive. Organizations must have buy-in to optimize data
and analytics, some team members still want to keep the status quo and maintain things the way
they are because they have always been that way is a constant issue. Finally, if demographic data
is missing, as it generally is when dealing with OTAs, your ability to properly forecast
TRM/TPM can be compromised and your ability to identify customer needs are limited.
The participants in the 2015 Visionary Leaders Forum in Singapore agree that continued change
in revenue management including TRM and TPM will continue. The field of revenue
management is still new and while data is plentiful, being able to access, understand, and utilize
all of it can be difficult. Industry leaders recognize the importance, but also see the roadblock
and are working to make changes.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
18 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Sharing their insight and perspective at the 2015 Visionary Leaders Roundtable:
• Shirley Alexander, Lead Consultant, Learning & Development – MacroVision
Hospitality
• Patrick Andres, Managing Director, Asia Pacific - Rainmaker
• Simone Champagnie, Executive Director - Institute for Hospitality and Tourism
Education and Research at FIU
• Henry Chew, Manager, Customer Intelligence – Resorts World Genting
• William Chua, Director of Revenue Generation & Distribution – HPL Hotels & Resorts
• Siv Forlie, Vice President - Revenue Management - Shangri-La International Hotels
• Pierre-Charles Grob, Managing Director, Asia – FASTBOOKING
• Mike Hampton, Dean - Chaplin School of Hospitality and Tourism Management, Florida
International University
• Rosmalia Hardman, Chief Marketing Officer – PT Lippo Karawaci Tbk
• Jeannette Ho, Vice President, Revenue Management and Analytics - FRHI Hotels &
Resorts
• Carmen Lam, Vice President, Sales & Marketing, Asia Pacific – FRHI Hotels & Resorts
• Michael Lee, Consultant – Banyan Tree Lifestyle Services
• Josephine Lim, Managing Director SEA – Preferred Hotels & Resorts
• Jurgen Ortelee, Vice President, Revenue Performance – Pan Pacific Hotels Group
• Jagdish Sandhu, Vice President, Revenue Management, Distribution and Sales –
Travelodge Asia
• Fanie Swanepoel, Vice President, Revenue Optimization – Marina Bay Sands
• Christine Tan, Senior Vice President, Strategic Sales & Account Management, Asia
Pacific – FASTBOOKING
• Christine Toguchi, Managing Director – MacroVision Network Pte Ltd & Consultant to
the Institute for Hospitality and Tourism Education and Research at FIU
• Sean Treacy, Managing Director, Singapore & South East Asia – Royal Caribbean
Cruises
• Jameson Wong, Director of Business Development, Asia Pacific – ForwardKeys
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
19 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Presenting Partners
Thank you to our presenting partners, FASTBOOKING, ForwardKeys and Rainmaker who
actively engaged participants throughout the roundtable and played a vital role in the success of
FIU’s 2015 Visionary Leaders Roundtable in Singapore.
FASTBOOKING offers leading edge e-commerce solutions for hotels to boost their direct sales strategy. Our solutions based on a cutting-edge cloud platform and our proven expertise in digital marketing enable hotels to boost brand visibility and promote online sales through online and mobile channels. Our local experts offer daily support to hoteliers, in more than 90 countries, to help them leverage our solutions and retain their independence.
Founded in 2000, FASTBOOKING is now part of AccorHotels group, as the specialist for digital solutions dedicated to independent hotels. (www.fastbooking.com)
ForwardKeys is the world’s leading travel intelligence company. With more than 70 million global booking transactions processed daily, ForwardKeys is able to provide historical and future data as well as monitor and anticipate true traveller demand. ForwardKeys works with national tourism organisations, hotel chains, investment firms, as well as other tourism-focused businesses around the world by providing them with the freshest insights. ForwardKeys has been featured by leading publications around the world, such as the Economist, BBC, Travel & Tourism News Middle East and TTG, among others. (www.forwardkeys.com)
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
20 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Based in Atlanta, with offices in Las Vegas and Singapore, Rainmaker is the market leader in profit optimization solutions for the hospitality and gaming industries. Its software and consulting services help hotel, resort and casino hotel operators secure those customers who will increase their overall profitability. The first company to incorporate “total guest value” into its revenue optimization model, Rainmaker leverages cutting-edge research and innovation to offer highly sophisticated systems that guarantee the highest possible profits. All our solutions help hotels and casinos better price their rooms to maximize overall profitability, better determine the value of distribution channels and how to engage different channels when appropriate, enhance the reservation process, implement a streamlined sales process, while better controlling marketing and promotional spend. Our products are used by some of the leading global hotel chains and casino operators including Omni Hotels, Rosewood Hotels, Movenpick Hotels, Best Western, Destination Hotels and Resorts, Hard Rock Hotels and Casinos, Luxe Hotels, Genting’s Resort World, MGM Resorts, Caesars Entertainment and Trump Resorts, to name but a few. For five years running, Rainmaker has been ranked on the Inc. 5000 list of America’s fastest-growing privately held companies. (www.LetItRain.com)
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
21 DRIVING FUTURE GROWTH & PROFITABILITY 2020
About Florida International University’s Chaplin School of Hospitality and Tourism
Management:
Florida International University's Chaplin School of Hospitality & Tourism Management has
been distinguished as one of the top hospitality programs in the U.S. More than 2,500
undergraduate and graduate students from across the United States and around the world choose
FIU for its outstanding reputation, advantageous campus locations, expert faculty, rich
curriculum, and fast-track career opportunities in the international hotel, foodservice and tourism
industries. In August 2006 FIU unveiled the first US School of Hospitality and Tourism in
Tianjin, China. The Marriott Tianjin China Program is FIU's largest international program, with
a capacity for up to 1,000 students. For more information about Florida International University's
School of Hospitality and Tourism Management, visit http://hospitality.fiu.edu/.
About FIU:
Florida International University is recognized as a Carnegie engaged university. It is a public
research university with colleges and schools that offers more than 180 bachelor’s, master’s and
doctoral programs in fields such as engineering, computer science, international relations,
architecture, law and medicine. As one of South Florida’s anchor institutions, FIU contributes
$8.9 billion each year to the local economy. FIU is Worlds Ahead in finding solutions to the
most challenging problems of our time. FIU emphasizes research as a major component of its
mission. FIU has awarded over 200,000 degrees and enrolls more than 54,000 students in two
campuses and three centers including FIU Downtown on Brickell, FIU@I-75, and the Miami
Beach Urban Studios. FIU’s Medina Aquarius Program houses the Aquarius Reef Base, a unique
underwater research facility in the Florida Keys. FIU also supports artistic and cultural
engagement through its three museums: Patricia & Phillip Frost Art Museum, the Wolfsonian-
FIU, and the Jewish Museum of Florida-FIU. FIU is a member of Conference USA and has over
400 student-athletes participating in 18 sports. For more information about FIU, visit
http://www.fiu.edu/.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
22 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
23 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Authors
Simone Champagnie, M.I.B.A. Executive Director, Development Chaplin School of Hospitality & Tourism Management Florida International University
Simone Champagnie joined the Chaplin School of Hospitality and Tourism Management at Florida International University (FIU) in 2012 as Executive Director of the Institute for Hospitality and Tourism Education and Research. In this role, Ms. Champagnie led all activities associated with business enterprise, including developing revenue-generating training & development programs and services in alignment with the overall strategic goals of the Chaplin School of Hospitality & Tourism Management. With her team, she established and expanded the institute's reach in the US, China and Asia-Pacific, which includes the launch of the Visionary Leaders Roundtables and the school's Culinary Arts Academy. She also ushered the Kovens Conference Center into becoming a sustainable profit-center for the University. Before entering the field of higher education, she spent over ten years in the international travel and tourism sector, working with companies such as American Express and Air France, and serving in volunteer leadership positions with the Society of Incentive Travel Executives and the South Florida chapter of Meeting Professionals International. Ms. Champagnie received her undergraduate degree in Tourism Management from the University of the West Indies, Jamaica, and completed her Master’s degree in International Business Administration at Nova Southeastern University.
Institute for Hospitality & Tourism Education & Research A division of Chaplin School of Hospitality and Tourism Management, Florida International University
24 DRIVING FUTURE GROWTH & PROFITABILITY 2020
Nathan Dodge, MBA Visiting Professor, Chaplin School of Hospitality & Tourism Management Florida International University
Nathan Dodge serves as faculty at Florida International Universities Chaplin School of Hospitality and Tourism Management in Miami Florida. Professor Dodge currently teaches introduction to hospitality, revenue management, senior seminar, and facilitates the undergraduate internship course. Professor Dodge has pricing and database experience from Alamo Rent-A-Car’s Europe/Middle East/Africa sales and marketing department.
Christine Toguchi Managing Director MacroVision Network Pte Ltd Project Consultant for IHTER at Florida International University
Christine Toguchi is a passionate leader who has dedicated over 20 years in Asia Pacific, EMEA and the USA to support the knowledge and skills development of tourism professionals and future leaders in hospitality management. She is a creative thinker with proven strategic execution skills in Customer Relationship Management, Loyalty, Multi-Channel Distribution, Revenue Optimization and Sales & Marketing. As managing director of MacroVision Network, she spearheads the development of programs for thought-leaders and produces learning & networking events that inspire new thinking and creative leadership. She is currently executing key initiatives for FIU to support the development of IHTER’s Learning and Development Academy in China and the Visionary Leaders Council in Asia.
Christine is a Chartered Marketer with an Executive Masters Degree of Business Administration (International Marketing) and holds a Graduate Diploma in Social Psychology & Counseling. She is also WSQ- certified with an Advanced Certificate in Training and Assessment.