The next slide presents side-by-side hotels.

Each has $10 million in Gross Reservation Revenue and 114 units.

Standard industry analytics show you that …..each has an ADR of $330, Occupancy of 70 ½% & RevPAR of $232.

Any hotel executive would have too believe that his/her hotel was performing satisfactorily and taking market share.

But because of Channel Mix and the Merchant Model method that assumption would be far from the truth.

See the analysis on the next page…..

Game Changing Analytics

Channel Mix & the Merchant Model creates this hidden $600k difference in Profit!

Standard Industry Analytics combines Revenues paid

directly by guests with revenues paid by Merchant Model vendors in the NET

AMOUNT.

Why?

Standard Industry Analytics

Unless your hotels competitive set uses the exact same channel mix the Standard Industry Metric result is scientifically flawed.

In a data driven society it is important that metrics used are accurately reported.

In an industry where a several dollar difference in Average Daily Rate causes executives to take note, the above is close to shocking! The Merchant Model must be accounted for in this calculation.

KEYADR = Average Daily RateRRC = Revenue Report CardVar. = Variance

More so then ever before, we’ve become a data driven society. Much of this has come about because of what has been defined as the “big data

era” of computing. Advances in computing and internet capability, in the last decade, have changed our lives and our ability to look at and analyze data in large

quantities. In turn, it empowers us to see things we could never see before in defining the companies we do business with.

In the hotel industry, “new” computer capability enables the hotel executive to look at hotel reservation-vendors in a whole new way.

Hoteliers no longer need to define and categorize “Vendors” by what they appear to be at face

value (i.e. “wholesalers”, on-line travel agents, etc.) but rather can be viewed by the ways in which they have historically filled our hotels.

Key Performance Indicators enable us to classify vendors by attributes that complete the puzzle and fill the hotel optimally.

Big Data enables us to see things we could never see before in our reservation vendors

Key Performance Indicators that are now uncovered, provide us with a reliable road

map of how each vendor fills our hotel. The end result provides us with the ability to pick and choose vendors through a Vendor Mix, who optimally fill our rooms and raise hotel

profitability.

We add actual channel-by-channel cost to the equation

The introduction of complete wage & promotional cost provides….

Return on Promotional Investments Return on Sales & Marketing Labor

Channel-by Channel COST

• Tens of millions of dollars are being spent to develop revenue software, in outsourcing revenue management

to consultants and in educating revenue managers.

• Each software algorithm, each revenue consultant and each revenue manager has a varied “algorithm” used to

reach optimal revenues.

• Until today no company has provided an independent evaluation of optimization performance.

• Optimization performance is calculated after all wage, benefits, promotional expenditures and the merchant model effect is removed from each channel. Based on

the channel mix used and a weighted factor applied an optimization score is calculated each week.

• The best use of optimization scores are to compare them to the same period in historic results, season over

season results and in comparison to a hotels competitive set.

• Growth in optimization over prior year results means higher profitability and deposits to the bank.

Revenue Report Card LLC maintains your optimization evaluation for 4 months and generates all reports.

$1,195 is a onetime initial programing fee. This fee is credited toward the software purchase

$95 per week is paid to process hotel data weekly and email reports to designated executives.

1. The service can be cancelled at any time.2. All information handled will be held in strict confidence and controlled.3. Initial set-up requires limited interaction with your revenue manager, sales director and controller.4. An automatic credit card charge for weekly billing will be generated on the 1st day of each month.

Your vendors will be set up in KPI driven Revenue Channels

Each Revenue Channel is supported by a Channel Ledger

Each vendor will be kept in your vendor dictionary

Each ChannelCan Contain

OneOr More

PromotionalInvestments

Sales,Marketing &Reservation

RelatedLabor is AllocatedBased on

TimeDevoted

Each Promotional Investment is tracked

Individual PromoInvestments

Amount earned for each dollar spent

Revenue ChartOf Channels

MerchantModel

AdjustedADR

Overall COST

Overall Profitability

MerchantModel

AdjustedRevPAR

Additional Information – 1 of 3 pages

Additional Information – 2 of 3 pages

Additional Information – 3 of 3 pages

Thank you!

Contact us at:Sales@RevenueReportCard.comor (786) – 897 - 0652