HSMAI President & CEO Bob Gilbert interviewed Kelly Wood, Vice President, Global Sales Organization, North America for the Ritz-Carlton Hotel Company on business acumen for sales people, technology, and more.

BG: What trends have you seen in the past year that is changing the roles and responsibilities of hotel sales people?

KW: The best salespeople are those that have become very business savvy and understand the hotel model, its costs and the impact a sale of either a group contract or the negotiation of a business travel RFP will have on the hotel. The best sales people are also not transaction based and consider long term implications when working with their customers. The ability to effectively balance the long and short term needs of their customer and that of their own hotel, and company, allows for a dialogue with their customer that is much more consultative allowing both the customer and salesperson to move focus away from the basic rates, dates and space. Technology would be the second big trend and it has the ability to replace a human, face-to-face sales model which is what this business was built on.

BG: Which one do you think has had the biggest impact on how your company sells and does business with your various customer stakeholders - and why?

KW: It's a draw. Being able to engage in real time, personal conversation will never be replaced by technology. Tools are critical to effective decision making and often provide the data to have intelligent and thoughtful conversations with customers. I also think being able to understand the big picture of the hotel business model. The model has changed. The recent economic crisis fundamentally changed the ability for many hotels to be profitable, end the year with positive NOI/cash flow and for owners to be able to pay their bills. The ability of a hotel sales person to understand this and make good business decisions without simply being dictated to by revenue management personnel and tools changes the conversations and thought process sales people will have with customers.

BG: How has measuring sales person productivity changed today from how it was done five years ago?

KW: It used to be simply a function of exceeding room nights or revenue, but sales people are held much more accountable for F&B and ancillary revenues, shop scores, sales training, overall hotel RevPar or YOY revenue growth, future bookings/cross over goals and ADR growth.

BG: Do you think social media can be leveraged as an effective sales tool?

KW: I think it is a great way to converse/engage with customers and provides one more way to create meaningful and dynamic relationships with customers. Some are better than others and if not managed correctly actually can damage the image and reputation of the hotel, brand and sales person.

BG: What trend are you predicting for the upcoming year that could have the highest positive impact on your sales people?

KW: Increasing technology and e-channels as a way of transacting group business

By Tammy Farley, Principal, The Rainmaker Group, and member of the HSMAI Revenue Management Advisory Board

The past 18 months has been one of the most turbulent and challenging times for the hospitality industry, but all signs indicate we are over the worst of it and headed into a period of healthy recovery. One of the clear messages from leaders in the industry is that revenue management was crucial for survival during this challenging time. As a result, many companies have realized the importance of this function and are beginning to elevate it within their organizations; as they do so, the job description is growing and evolving. No longer is the revenue manager simply a 'controller' of inventory or a 'setter' of rates. The future role of the revenue manager is very different and quite frankly, the future is now!

In order to talk about the future, it is worth taking a quick look at the past. Hotels have been practicing revenue management (initially called yield management) for well over 20 years. Many companies have invested significant resources, both human and financial, in sophisticated systems but at the end of the day, it is not about systems, it's about culture and organizational commitment. In a large number of organizations, the revenue manager came from either reservations or the front desk and their primary focus has been forecasting occupancy, setting room rates and managing group business. Going forward, this will simply not work. Successful revenue managers now have advanced degrees and/or experience in business or finance and are corporate leaders in pricing strategy who seek to maximize the profit of the enterprise.

While the revenue manager has been at the center of pricing decisions for many companies, they are often charged with making decisions they are not empowered to enforce. This is where things must change; the revenue management function must have a seat at the executive table....and this is where things get complicated! Not only must a revenue manager be analytical, evaluate market conditions and understand existing demand to make pricing decisions, but they must also be able to interpolate this data in the context of corporate strategy and brand standards in order to determine the best tactical actions to take. Getting it "right" is critical to the success of the profitability of the organization, which means finding the right revenue manager is essential!

No longer can a good reservations manager be moved into revenue management with an expectation of automatic success. The revenue manager is now a corporate leader, formulating a cross-departmental strategy for profit optimization. This means knowing what other departments are doing and interacting with them on a routine basis. That's a radical departure from a few years back when revenue management operated as a silo, independent from marketing, sales and finance. The revenue manager should chair a weekly profit optimization meeting with representation from each of these areas - which requires someone with strong leadership and communication skills. In these meetings, they will need to present complex analysis and recommendations in a digestible way. It has often been said that the best revenue managers are "geeks who can speak," and there is really a lot of truth to that; when meeting with senior executives they need to be able to remove emotion and 'gut feel' in favor of informed decisions based on data turned into information.

And, they need to be able to know when to say "No," no matter who the audience is! In fact, at the 2011 HSAMI Revenue Optimization Conference (ROC), Paul Wood, VP of revenue management for Greenwood Hospitality Group stated in a panel, "The personality of revenue managers is going to change. We're no longer robots you can stick in a dark cave," he said. "People are realizing revenue management is not just a science or an art - it is both. We're going to be the key asset for the hotel."

The challenge is finding this resource. Hotel companies have struggled to find qualified revenue managers and as the role and responsibilities have shifted drastically, the task is now even more difficult. This is compounded by the rapidly increasing complexity in the industry. There are more distribution channels than ever before; flash sale sites seem to crop up overnight making it nearly impossible to keep up with the competitive landscape. There is more data available than ever before, and it's critical to know how to monetize it! Then, there's Customer data...how, where and when do you collect it and once you have it, what do you do with it? That's the Holy Grail!

In Great by Choice, a new book from Jim Collins and Morten Hansen, the two authors suggest that even in the most tumultuous business conditions, we can choose to be great. They are certainly correct in their position that we have entered an extended period of uncertainty and turbulent disruption that might well characterize the rest of our lives. The question then is, what is required to perform exceptionally well in such a world? In their research they learned that the most successful business leaders displayed "three distinctive behaviors: fanatic discipline, empirical creativity and productive paranoia." And the businesses that succeeded didn't simply succeed: They delivered returns that were a minimum of 10 times the industry index over a 15-year period.

Perhaps the one behavior that can most define the future of revenue management is fanatic discipline; that is, consistency of action. Collins and Hansen recommend that "the way you implement that is through the 20-mile march. Number one, you set a progress standard for yourself. Secondly, you [have] a lower boundary, what you must hit, and an absolute commitment to hitting it in bad times and good times. Then there is an upper boundary, and you have the discipline to hold back and not just maximize growth because you can, because that is going to expose you to possible storms coming your way down the road. Then the fourth characteristic is that you must hit it. It's not about good intentions: They don't really count here. It is about hitting it. So those are the principles of a 20-mile march."

Revenue management as a discipline has come a long way since its early days of inventory control. Every hotel company is practicing revenue management in some form or fashion today, whether manual or automated, intentional or accidental. Hotels serve demand streams from numerous channels that generate revenue streams of varying margins. These complex business processes are being supported by sophisticated, yet disconnected operational systems. Having the most talented revenue manager is not enough, if we burden them with the time consuming tasks of manually collecting and processing data from these complex information systems. We need to equip him with the analytical tools that integrate various systems and derive valuable insights from data by applying sophisticated algorithms.These insights coupled with the analytical frameworks will provide the arsenal he needs to effect change and get the necessary buy-in.

Going forward, winning companies will be those who invest time and capital in the right resources, both human and technology. So if the future is now, the winners will have the right revenue managers to lead the way.

This topic will be addressed as part of the 10-part 2011 Revenue Management Webinar Series produced by the HSMAI University in partnership with HNN, and sponsored by IDeaS. Each month a webinar covers one aspect of cutting edge revenue management in today's economy in conjunction with articles written by members of theH SMAI Revenue Management Advisory Board. If you're not able to attend a live program, archives are available. Also, some of these and other timely revenue management topics were the focus of the HSMAI Revenue Optimization Conference on June 20, 2011. Presentation recordings are now available in the ROC 365 Conference Archive.

Tammy Farley co-founded The Rainmaker Group in 1998. Rainmaker today is an industry-leading provider of revenue management and profit optimization systems to owners/operators in the multifamily housing and gaming/hospitality industries. She devotes her time to increasing revenue and delivering greater profitability for clients. Tammy is a highly respected resource for innovative revenue management practices and project consulting, particularly in the casino hotel and resort markets. She has spearheaded successful revenue management implementations internationally for over 18 years and maintains close professional relationships with clients such as Caesars Entertainment, The Cosmopolitan of Las Vegas, Wynn Las Vegas and Omni Hotels & Resorts to name a few. Tammy is a member of HSMAI's Revenue Management Advisory Board.

The Revenue Management Advisory Board leverages insights, emerging trends, and industry innovations to guide the development of products and programs that optimize revenue for hotels. www.revmanagement.org

* Chris K. Anderson, Ph.D., Professor, Cornell University

* Christopher Crenshaw, CRME, Vice President, Marketing Intelligence, Loews Hotels

* Kathleen Cullen, CRME, Corporate Director of Revenue Strategies, Heritage Hotels and Resorts

* Sloan Dean, CRME, Vice President of Sales & Marketing, Interstate Hotels & Resorts

* Jon Eliot, CRME, CHA

* Tammy Farley, Principal, The Rainmaker Group

* Fred Heintz, CRME, Director of Group Strategy, Marriott & Renaissance Hotels of New York City

* Jay Hubbs, Director Hotel Supplier Relations, Expedia Partner Services Group / Hotwire

* Burl Hutchison, CRME, Manager of Revenue Optimization, Sabre Hospitality Solutions

* Warren T. Jahn, Jr., Ph.D., Manager, Revenue Systems Training AMER, IHG

* Klaus Kohlmayr, Senior Director, Consulting, IDeaS Revenue Optimization

* Orly Ripmaster, CRME, Senior Analyst, STR Analytics

* Scott Roby, CRME, Vice President, Revenue Management, Evolution Hospitality

* Chinmai Sharma, Vice President, Revenue Management, Wyndham Hotel Group

* Susan Spencer, Market Director - N. America, ChannelRUSH

* Trevor Stuart-Hill, CRME, President, Revenue Matters

* Paul Wood, CRME, CHBA, Vice President of Revenue Management, Greenwood Hospitality Group

By Jon Eliot, CHA, CRME and co-chair of the HSMAI Revenue Management Advisory Board

The Hospitality Sales & Marketing Association International's (HSMAI) Revenue Management Advisory Board recently held their annual strategic planning retreat. The meeting was an opportunity for the board members to discuss the current state of the revenue management discipline and strategize for 2012. This board's work helps to deliver on one of HSMAI's three pillars, to assist members in optimizing revenue through education and building community.

The Advisory Board took some time to review its 2011 performance. "We had a very successful year in 2011 with an outstanding conference, a series of relevant articles and webinars, our first Chief Revenue Officer roundtable, a record number of nominees for the Revenue Management Professional of the Year award, as well as a significant increase in Certified Revenue Management Executives (CRME). We are looking forward to continued momentum and improving on our success in 2012," said Scott Roby, outgoing Advisory Board chair.

To guide program planning for 2012, the advisory board conducted an informal survey of leaders in the field of hotel revenue management, uncovering their top of mind concerns, and important issues facing the industry today. Some of the key areas identified as needing attention by the industry and its members include:

* managing pricing in a competitive environment with multiple channels,

* growing revenue management talent,

* having a more strategic approach to revenue management,

* providing more revenue management training, and

* developing key skills for professionals in the field moving forward.

"The discipline of revenue management continues to evolve in and outside of the hospitality industry," commented Sloan Dean, incoming co-chair. "We want to continue to provide opportunities and resources to aid in moving the conversation forward so those in the industry are equipped to make more profitable decisions. We've come a long way as a field, especially over the past 5 years; however, we must continue to evolve and accelerate as a practice and as leaders. There is still a lot to be learned from various best practices within the industry and from revenue management in other industries such as financial services, consumer goods, advertising/media, etc. In that spirit of best practice and knowledge sharing, the HSMAI team is committed to a continued acceleration of RM as a practice within the hospitality industry."

HSMAI offers a number of programs to help educate hospitality professionals on key topics in revenue management. The annual Revenue Optimization Conference will be held June 25, 2012 in Baltimore, MD. This conference is an opportunity for revenue management professionals to come together to network, meet with vendors, and learn from experts on a variety of topics that are relevant and timely. "The 2011 conference set a record for attendance, and we expect to exceed that next year. The advisory board's goal is to present a valuable, educational experience for all attendees along with providing things they can take back and implement immediately," said Jon Eliot, incoming co-chair. "We expect this year's event to be even bigger and better."

In addition to the annual conference, HSMAI will host a number of other programs throughout 2012, including:

* Article and Webinar Series. Beginning January 2012, and going through December, each month a webinar will cover various aspects of cutting edge revenue management in today's economy in conjunction with articles written by members of the HSMAI Revenue Management Advisory Board. If you're not able to attend a live program, archives are available. This series is presented in association with the HSMAI University and HNN. A significant discount is offered for the full webinar series.

* LAB (Learning About Business) sessions. These "virtual brown bag" programs, free to HSMAI members, provide a more informal, interactive forum to discuss issues faced in revenue management, presented via a conference call.

* Professional Certification. Through HSMAI, revenue management professionals can earn the Certified Revenue Management Executive (CRME) designation. This achievement recognizes an individual's experience and knowledge in the field. The Evolving Dynamics of Revenue Management: A Comprehensive Revenue Optimization Road Map for Hotel Owners, Operators and Practitioners, published by the HSMAI Foundation is used as the study guide for the CRME. A review course will be offered in conjunction with the 2012 Revenue Optimization Conference.

* Revenue Management Professional of the Year. Once again, HSMAI will select an outstanding individual as Revenue Management Professional of the Year. This award is in recognition of exceptional achievement in the field of revenue management. The finalists and winner will be recognized at the June 25th conference. Nomination forms will be available in March 2012.

* Local chapter programs. The Revenue Management Advisory Board will provide tools to local HSMAI chapters to aid in conducting events with a revenue management focus.

* Chief Revenue Officer Roundtable. For the second consecutive year, HSMAI will invite top revenue management leaders in the industry to come together for a roundtable discussion on the state of the discipline and what the future may hold. Results of the session will be published.

"We want to make sure our programs are accessible and useful for not only those with revenue management in their title, but to others who must interact with and depend on the revenue management function," commented Dean. "HSMAI has included Optimizing Revenue as one its three pillars because it is an important piece to the overall sales and marketing picture."

Eliot adds, "We have a strong board representing many perspectives of the revenue management landscape. The Advisory Board is looking forward to a great 2012 as we strive to be the voice of the industry in revenue management, while providing value to association members."

More information about HSMAI and the programs offered can be found at www.hsmai.org. The 2012 HSMAI Revenue Management Advisory Board consists of leaders in the field:

* Chris K. Anderson, Ph.D., Professor, Cornell University

* Bonnie Buckhiester, President & CEO, Buckhiester Management USA Inc.

* Sheila Cosgrove, Director, Revenue Management Ops & Planning, Intercontinental Hotels Group

* Christopher Crenshaw, CRME, Vice President, Marketing Intelligence, Loews Hotels

* Kathleen Cullen, CRME, Corporate Director of Revenue Strategies, Heritage Hotels and Resorts

* Sloan Dean, CRME, Vice President of Sales & Marketing, Interstate Hotels & Resorts

* Kent Duncan, CRME, Vice President, Sales & Revenue Strategy, Marcus Hotels & Resorts

* Jon Eliot, CRME, CHA

* Tammy Farley, Principal, Rainmaker Group/The

* Neal Fegan, CRME, Executive Director of Revenue Management, Fairmont Raffles Hotels International

* Rhett Hirko, CRME, Director Of Revenue Analytics, Hyatt Hotels & Resorts International Opertaions

* Jay Hubbs, Senior Director, Hotel Supplier Relations, Expedia Partner Services Group / Hotwire

* Burl Hutchison, CRME, Director of Revenue & System Optimization, Sabre Hospitatlity

* Klaus Kohlmayr, Senior Director, Consulting, IDeaS - A SAS Company

* Mark Molinari, CRME, Corporate Vice President of Revenue Management and Distribution, Las Vegas Sands

* Orly Ripmaster, CRME, Senior Manager, STR Analytics

* Scott Roby, CRME, Vice President, Revenue Management, Evolution Hospitality

* Chinmai Sharma, Vice President, Revenue Management, Wyndham Hotel Group

* Susan Spencer, Market Director - N. America, ChannelRUSH

* Trevor Stuart-Hill, CRME, President, Revenue Matters

* Paul Wood, CRME, CHBA, Vice President of Revenue Management, Greenwood Hospitality Group

By Jon Eliot, CHA, CRME and co-chair of the HSMAI Revenue Management Advisory Board

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The Hospitality Sales & Marketing Association International’s (HSMAI) Revenue Management Advisory Board recently held their annual strategic planning retreat. The meeting was an opportunity for the board members to discuss the current state of the revenue management discipline and strategize for 2012. This board’s work helps to deliver on one of HSMAI’s three pillars, to assist members in optimizing revenue through education and building community.

The Advisory Board took some time to review its 2011 performance. “We had a very successful year in 2011 with an outstanding conference, a series of relevant articles and webinars, our first Chief Revenue Officer roundtable, a record number of nominees for the Revenue Management Professional of the Year award, as well as a significant increase in Certified Revenue Management Executives (CRME). We are looking forward to continued momentum and improving on our success in 2012,” said Scott Roby, outgoing Advisory Board chair.

To guide program planning for 2012, the advisory board conducted an informal survey of leaders in the field of hotel revenue management, uncovering their top of mind concerns, and important issues facing the industry today. Some of the key areas identified as needing attention by the industry and its members include:

* managing pricing in a competitive environment with multiple channels,

* growing revenue management talent,

* having a more strategic approach to revenue management,

* providing more revenue management training, and

* developing key skills for professionals in the field moving forward.ÂÂÂ

“The discipline of revenue management continues to evolve in and outside of the hospitality industry,” commented Sloan Dean, incoming co-chair. “We want to continue to provide opportunities and resources to aid in moving the conversation forward so those in the industry are equipped to make more profitable decisions. We’ve come a long way as a field, especially over the past 5 years; however, we must continue to evolve and accelerate as a practice and as leaders. There is still a lot to be learned from various best practices within the industry and from revenue management in other industries such as financial services, consumer goods, advertising/media, etc. In that spirit of best practice and knowledge sharing, the HSMAI team is committed to a continued acceleration of RM as a practice within the hospitality industry.”

HSMAI offers a number of programs to help educate hospitality professionals on key topics in revenue management. The annual Revenue Optimization Conference will be held June 25, 2012 in Baltimore, MD. This conference is an opportunity for revenue management professionals to come together to network, meet with vendors, and learn from experts on a variety of topics that are relevant and timely. “The 2011 conference set a record for attendance, and we expect to exceed that next year. The advisory board’s goal is to present a valuable, educational experience for all attendees along with providing things they can take back and implement immediately,” said Jon Eliot, incoming co-chair. “We expect this year’s event to be even bigger and better.”

In addition to the annual conference, HSMAI will host a number of other programs throughout 2012, including:

* Article and Webinar Series. Beginning January 2012, and going through December, each month a webinar will cover various aspects of cutting edge revenue management in today's economy in conjunction with articles written by members of theÂHSMAI Revenue Management Advisory Board. If you’re not able to attend a live program, archives are available. This series is presented in association with the HSMAI University and HNN. A significant discount is offered for the full webinar series.

* LAB (Learning About Business) sessions. These “virtual brown bag” programs, free to HSMAI members, provide a more informal, interactive forum to discuss issues faced in revenue management, presented via a conference call.

* Professional Certification. Through HSMAI, revenue management professionals can earn the Certified Revenue Management Executive (CRME) designation. This achievement recognizes an individual’s experience and knowledge in the field. The Evolving Dynamics of Revenue Management: A Comprehensive Revenue Optimization Road Map for Hotel Owners, Operators and Practitioners, published by the HSMAI Foundation is used as the study guide for the CRME. A review course will be offered in conjunction with the 2012 Revenue Optimization Conference.

* Revenue Management Professional of the Year. Once again, HSMAI will select an outstanding individual as Revenue Management Professional of the Year. This award is in recognition of exceptional achievement in the field of revenue management. The finalists and winner will be recognized at the June 25th conference. Nomination forms will be available in March 2012.

* Local chapter programs. The Revenue Management Advisory Board will provide tools to local HSMAI chapters to aid in conducting events with a revenue management focus.

* Chief Revenue Officer Roundtable. For the second consecutive year, HSMAI will invite top revenue management leaders in the industry to come together for a roundtable discussion on the state of the discipline and what the future may hold. Results of the session will be published.Â

“We want to make sure our programs are accessible and useful for not only those with revenue management in their title, but to others who must interact with and depend on the revenue management function,” commented Dean. “HSMAI has included Optimizing Revenue as one its three pillars because it is an important piece to the overall sales and marketing picture.”

Eliot adds, “We have a strong board representing many perspectives of the revenue management landscape. The Advisory Board is looking forward to a great 2012 as we strive to be the voice of the industry in revenue management, while providing value to association members.”

More information about HSMAI and the programs offered can be found at www.hsmai.org. The 2012 HSMAI Revenue Management Advisory Board consists of leaders in the field:

* Chris K. Anderson, Ph.D., Professor, Cornell University

* Bonnie Buckhiester, President & CEO, Buckhiester Management USA Inc.

* Sheila Cosgrove, Director, Revenue Management Ops & Planning, Intercontinental Hotels Group

* Christopher Crenshaw, CRME, Vice President, Marketing Intelligence, Loews Hotels

* Kathleen Cullen, CRME, Corporate Director of Revenue Strategies, Heritage Hotels and Resorts

* Sloan Dean, CRME, Vice President of Sales & Marketing, Interstate Hotels & Resorts

* Kent Duncan, CRME, Vice President, Sales & Revenue Strategy, Marcus Hotels & Resorts

* Jon Eliot, CRME, CHA

* Tammy Farley, Principal, Rainmaker Group/The

* Neal Fegan, CRME, Executive Director of Revenue Management, Fairmont Raffles Hotels International

* Rhett Hirko, CRME, Director Of Revenue Analytics, Hyatt Hotels & Resorts International Opertaions

* Jay Hubbs, Senior Director, Hotel Supplier Relations, Expedia Partner Services Group / Hotwire

* Burl Hutchison, CRME, Director of Revenue & System Optimization, Sabre Hospitatlity

* Klaus Kohlmayr, Senior Director, Consulting, IDeaS - A SAS Company

* Mark Molinari, CRME, Corporate Vice President of Revenue Management and Distribution, Las Vegas Sands

* Orly Ripmaster, CRME, Senior Manager, STR Analytics

* Scott Roby, CRME, Vice President, Revenue Management, Evolution Hospitality

* Chinmai Sharma, Vice President, Revenue Management, Wyndham Hotel Group

* Susan Spencer, Market Director - N. America, ChannelRUSH

* Trevor Stuart-Hill, CRME, President, Revenue Matters

* Paul Wood, CRME, CHBA, Vice President of Revenue Management, Greenwood Hospitality Group

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