Travel Distribution India 2008

Revenue Maximization (RM)

November 26, 2008Taj Lands End, Mumbai

www.lemontreehotels.com

The Lemon Tree Hotel Company

• Lemon Tree Hotels: India’s fastest growing, upscale, full service, moderately priced hotel chain

• Red Fox Hotels: Economy hotel brand, under development

RM Intersects Distribution, CRM & Operations

Controlling Costs Is Critical To Bottom Line Success

Distribution Strategy

• Maintain rate parityMaintain rate parity

• Dynamic pricing and packagingDynamic pricing and packaging

• Explore new distribution avenues Explore new distribution avenues

RM In Hotel Development

Operation

Development

Site Selection

Distribution

Optimization

Profitability

Ratios

ROIReven

ue m

an

ag

em

en

t

Purchase Influencers

Location

Brand/Flag

Services

Facilities/Amenities

Price

Static

Dynamic

Determinant(can’t be changed)

Static (can be changed)

Incremental

Filter/Stimulant

Pricing Considerations

Target: REVPAR OptimizationD

em

an

d

Focus: Occupancy

Focus: ARR

• Understand competition

• Drive severe cost control

• Pursue REVPAR, not ARR

RM Today: Strategic Not Tactical

Market

Unqualified Customer

Prospective Customer

Customer

Satisfied Customer

Repeat Customer

Sell

Fulfill

Care

Customer Is King

Value to the customer

Valu

e t

o t

he e

nte

rpri

se

Effective RM

Optimized Revenue

Performance Costs

• Leverage your brand Leverage your brand

• Invest in effective technologyInvest in effective technology

• Build successful partner relationshipsBuild successful partner relationships

Key Drivers: RM Success

www.lemontreehotels.comtarun.lakhanpal@lemontreehotels.com

Thank You