REVENUE MANAGEMENT: Setting your pricing foundation for the 2016 RFP process
CHRIS WILROY, Vice President, Revenue Management Support Services
IVAN CALIL, Director, Revenue Management
BILL STACHLER, Director, Revenue Management
2015: U.S. FORECAST VS. RESULTS
FORECAST
Upper Upscale Upscale
ADR +6.6% +7.3%
RevPAR +8.0% +8.8%
Source: PKF
500 accounts solicited
1,533 rounds of rebids
30% below walk
RESULTS
AUDIENCE POLLING
During the 2015 RFP bidding process for all of Hilton Worldwide, what was the difference in rate change (year-over-year percentage) from the initial round of bids to the final round of rebids?
a) - 1.7%b) - 2.2%c) - 2.7% d) - 3.2%
a) - 1.7%b) - 2.2%c) - 2.7% d) - 3.2%
RFP RATE CHANGE
DoubleTree Embassy Hilton0%
1%
2%
3%
4%
5%
6%
7%
8%
7.0%7.4%
6.9%
4.4%5.1%
4.1%
Initial Final
-2.7%
-2.3%
-2.8%
WHAT’S AHEAD IN 2016?
2016 FORECAST
Upper Upscale Upscale
ADR +6.9% +7.8%
RevPAR +7.3% +7.5%
Source: PKF
2011 2012 2013 2014 2015 2016 2017
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
OCC Ac-tualOCC Fu-tureADR Ac-tual
NEGOTIATED ACCOUNT SCORECARD
Review your hotel’s: Peak night production
DOW production
Sold out night production
YOY occupancy / rate change
NEW FUNCTIONALITY FOR 2016 Business goal calculator
Property view Account view
Volume entry Modeling to determine revenue impact for total hotel
Historical data Dynamic accounts data available Preferred / non-preferred by hotel by account Season start / end dates by hotel by account % sold out nights by DOW Mix of business: guest affiliation
a) May 4b) June 15c) July 6 d) August 3
AUDIENCE POLLING
The 2016 account qualifier process officially started the RFP season. When does the wish / walk process begin?
a) May 4b) June 15c) July 6 d) August 3
CORPORATE PRICING TIMELINE
Jun 15–Jun 30 (3 weeks)
Jul 01–Jul 15 (2 weeks)
May 04–Jun 01 Jul–Nov Aug–Dec
Wish / Walk:Hotel Entry
Wish / Walk:Brand / RM reviewQualifier RFP Season Email Alerts RFP Rebids
TAKE ACTION
Do your homework: ANALYZE your accounts
ENGAGE in the Wish / Walk Process
Don’t lose the rebid battle: HOLD FIRM!
Plan for success: SET A GOAL