January 15, 2021
Siegel Sez
This is our first Siegel Sez of the year and, of course, it would be great to be forward looking. We have vaccines that are starting to be administered. There are now conversations full of optimism knowing there will be a recovery though nobody is sure when it will actually start. Knowing that until groups and citywide conventions happen again it will be a slow full recovery. The good news is the conversations are now all about when, there is light at the end of the tunnel and thankfully it is not an oncoming train.
Then last week happened at the nation’s capital in Washington, D.C. Like everybody here in the States, I have my views, but I am a bit reserved about sharing them. I have nothing against those that use social media to share their views, it is just not my thing. No matter what side of the political fence you are on there is no way you could not have felt the pain as to what happened in Washington, D.C. especially as I kept getting nonstop feedback from all over the world. I came across a personal message from Mark Holzberg the CEO at Cloud5 this week that he shared with those at the company. I sent him a note telling him how proud I was of him. It took guts for him to write what he did, but it was a clear message not from the business side of Cloud5 but more from the heart. If you would like to read Mark’s letter
click here. The future sure can be scary at times.
I seem to spend most of my time talking technology. I talk to hotels, to CIOs to vendors and the list goes on and on. When the conversations were about the state of revenue management, they were interesting since when you think revenue management you think of demand which has been few and far between the last 9 months. Doug Rice who follows this introduction does another great job sharing his thoughts about the state of revenue management and you will learn that it is not just about demand.
Before I close and on a much lighter note, I will say that there are some very creative people in this industry. Kerry Mack the Executive Vice President of Revenue and Distribution at Highgate Hotels is one of those creative people. A hotelier writing a parody of the song American Pie and then having a video created to share with the industry. We need more people like this in the industry. If you are a hotelier or someone whose livelihood is connected to the hotel industry then
click here to watch this very creative and most importantly silly and fun video. Great job Kerry and thanks for putting it together!
Here now is Doug’s look at the state of revenue management systems. I will see you at the end with this week’s attempt at you-know-what. Keep the faith, we are going to get through this!
Rich
rich@hospitalityupgrade.com
Definitely Doug
Revenue Management in a Pandemic
Revenue management endured a strange year in 2020. Last March, the terabytes of historical demand data that drove many revenue management system (RMS) algorithms became useless overnight. Someday it will return, but hotels can’t wait. In the meantime, many hotels have rethought their approach to revenue management in ways that will result in permanent as well as temporary changes.
For this week’s article, I spoke with several of the revenue management companies, both established and new, to get a better sense of what’s changing and how they are responding. Perhaps surprisingly, their mood was comparatively upbeat, with several saying they ended up having a “decent” year. In past downturns, revenue management often fell by the wayside when occupancies dropped, as it was seen mostly as a tool for managing high-demand periods. That view appears to have changed, in part because RMSs have gotten smarter in the way they measure and analyze competitive pricing decisions. In periods of oversupply, demand forecasting may become less important, but understanding price elasticity and competitive pricing become more critical.
This article is about the trends and changes I found. It is not meant to rank or compare the providers. It is quite possible that some of the interesting things I heard from one vendor are also available from others, but didn’t come up in conversation, or are offered by one of the many providers with which I didn’t connect. So, if something captures your interest, please ask your preferred vendor(s) – if they’re not already doing it, it may be on their roadmap.
One trend that several providers mentioned was the large variation in COVID’s market impact. While hotels in downtown core and convention markets have suffered greatly, other markets have seen normal, high, or even extreme demand. Destination markets within a 2-3 hour drive of crowded metro areas, such as Key West, the Monterey Peninsula, and the Catskills have proved extremely popular with well-heeled customers who want to escape the city for a weekend (or longer). Some RMSs found that templates for some of these situations were helpful in getting each customer onto the right path.
PEOPLE ON THE MOVE
- Agilysys Names New Leadership for EMEA Operations
Agilysys, Inc. (Nasdaq: AGYS), a leading global provider of next-generation cloud-native SaaS & on-premise hospitality software solutions and services, today announced the appointments of Ben Curtis as Managing Director, EMEA and Matthew Prosser as Senior Sales Director in EMEA.
www.agilysys.com
- AHLA Names Jason Riederer Senior Director of State & Local Government Affairs
The American Hotel & Lodging Association (AHLA) announced several additions to its staff as part of the association’s efforts to deepen its expertise in state and local government affairs and communications and meet our members’ needs today and in the future.
www.ahla.com
- Cloud5 Strengthens Leadership with the Addition of Key Executives
In the fourth quarter of 2020, Cloud5 secured the talent of Alex Ajdelsztajn, Vice President, Professional Services; Beth McClure, Vice President, Marketing; and Jason Reid, Senior Vice President and GM, Contact Center Business Unit. Cloud5 also promoted Beth Milano to the position of Vice President, Sales & Commercial Development.
cloud5.com
GUEST MANAGEMENT SYSTEMS
- Jonas Chorum Announces Integration with Akia Guest Messaging Platform
Jonas Chorum, a suite of streamlined, intuitive and flexible property management solutions, announces a direct integration with Akia, the premier text-messaging toolkit for hotels. With this integration, Jonas Chorum clients will be able to enhance the guest experience by leveraging two-way contactless communication.
jonaschorum.com
- Hotel Henry Urban Resort Conference Center Salutes Maestro PMS Ease of Use, Service and Support
In a post pandemic world, only the most service-oriented businesses will survive. Putting customers first, nurturing empathy, being proactive, prioritizing communications, boosting training, and practicing patience must be the fundamental ingredients of a customer service culture in the new normal.
www.maestropms.com
RESERVATIONS & DISTRIBUTION
- Mondrian South Beach Selects Advantage Reserve to Optimize Reservations Sales, Deliver Visibility into Guest Data
Providing guest services that are available 24/7/365, Advantage Reserve customizes a suite of reservation services, technologies, and analytics for its partner hotels that reduce internal costs, optimize conversions, and increase revenues.
www.advantagereserve.com
REVENUE MANAGEMENT AND ANALYTICS
- IDeaS Named Best Revenue Management Software for Third Time in 2021 HotelTechAwards
IDeaS Revenue Solutions, the world’s leading provider of revenue management software and services, has once again been named the highest-rated revenue management system (RMS) by Hotel Tech Report, as well as a top-10 hotel-technology company in the Global Hotelier’s Choice Competition.
ideas.com
GUEST FACING TECHNOLOGY
- TV Viewership Increases by 49.3% in Occupied Hotel Rooms During COVID-19 Pandemic
- ASSA ABLOY Global Solutions Earns Recognition as Best Mobile Key Provider During 2021 HotelTechAwards
- BeyondTV and LG Business Solutions Partner to Provide Italian Hotel Market with Advanced Content Casting Technology
- SONIFI and IDM Hospitality Complement Local Community Appeal with Travelers’ Modern Technology Expectations
- INTELITY Receives 4th Patent for Its Award-Winning Hospitality Technology Platform
- Win-River Resort & Casino Selects Agilysys Solutions to Streamline Guest Self-Service and Improve the Guest Journey
- The Joseph, a Luxury Collection Hotel, Nashville Deploys INTELITY In-Room Tablets to Engage Guests and Enhance Their Experience
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For more information on Guest Facing Technology for 1/15/2021
MARKETING
- Zoox Smart Data Experiences Record Online Traffic Numbers During 2020 Holiday Season
Zoox Smart Data, an international provider of technological solutions that harnesses big data to build customer profiles from existing Wi-Fi networks, has released a series of holiday season internet traffic results that serve as validation of the power and reach that targeted online advertising platforms can provide.
www.zooxsmart.com
- Zoox Deploys Targeted Direct Advertising Channel Abilities for Zoox Media Platform
Zoox Smart Data, an international provider of technological solutions that harnesses big data to build customer profiles from existing Wi-Fi networks, has announced the enhancing of its Zoox Media solution to provide businesses with direct advertising capabilities.
www.zooxsmart.com
SALES & CATERING, GROUPS & MEETINGS
- RFPAssist Continues to Drive New Event Sales Opportunities for Hotels
Lodging Interactive sees increasing demand for group and social event bookings through its recently launched RFPAssist lead generation service.
lodginginteractive.com
BACK OFFICE
- ProfitSword Set to Continue Rapid Hospitality Market Growth into 2021
ProfitSword, one of hospitality's premier developers of business intelligence and data integration software, is poised to maintain its industry-leading presence as the go-to source for performance measurement and forecasting with the ongoing expansion of its customer base.
www.profitsword.com
PAYMENT PROCESSING
- youtip Enters Hospitality as a Contactless, Cashless and ‘Appless’ Digital Tipping Solution for Frontline Workers
A new digital tipping solution has entered the hospitality scene to provide a contactless, cashless and “appless” enterprise system for digital gratuity with full reporting. Called youtip, the solution is simple and fast for tippers to use, as no app download is required.
www.youtip.money
SECURITY
- ASSA ABLOY Global Solutions Implements Latest in Door Lock Security and Contactless Digital Key Convenience at Hilton Surfer's Paradise Hotel & Residences
ASSA ABLOY Global Solutions as a leading innovator of security and guest experience-enhancing technology for hotels, has successfully upgraded the room access abilities of Hilton Surfer's Paradise Hotel & Residences with VingCard Signature RFID door locks equipped with Mobile Access.
www.assaabloyglobalsolutions.com
MARKET REPORTS
- Knowland Releases 2020 Meeting Planner Survey Data
Knowland, a leader in meeting and events analytics, and ConferenceDirect, a full service in-person, virtual, and hybrid meeting solution company, announced the results of a survey entitled, 2020 Planner Survey: The State of the Meeting Industry, designed to help industry professionals understand the planner and event manager perspective on recovery.
www.knowland.com
PIQUED OUR INTEREST
- Hilton Introduces Hybrid Solutions for Meetings and Events
- The Future of Corporate Events is Hybrid
- The Next Normal Arrives: Trends that will Define 2021—and Beyond
- 5 Big Questions Real Estate is Asking in 2021
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For more information on Piqued Our Interest for 1/15/2021
You-Know-What
And now for you-know-what.…
An officer while walking his beat sees a lady walking a skunk along the sidewalk.
He says, "Hey lady, why do you have the skunk?"
"This is my Social Distancing Support Animal!"