This video is part of a learning series designed to demonstrate how a revenue management professional uses guestrev daily to review hotel performance and rate recommendations to maximize revenue for their hotel.
Once supply numbers have been verified, next review the forecast. Guestrev forecasts arrivals by length of stay and displays the stay throughs and constrained room nights by customer segment and room type.
Select the Play icon at the bottom to begin the video.
The unconstrained demand represents the total demand for room nights given no capacity limitations. This unconstrained demand is calculated using historical bookings, statistical unconstraining, and accounts for lost business.
Guestrev applies the capacity limitations to the unconstrained demand to calculate constrained demand.
It is important to review demand along with year over year pace metrics to fully understand when demand changes may be needed. We start by reviewing the demand. The forecast information is located below the supply and demand tile.
You will want to review demand at the property level, for each room type, and at the segment level.
The Actuals/OTB section contains transient reservations booked broken out by stay-throughs, arrivals, and total reservations, along with a STLY day to day comparison and an historical OTB average for that day of week.
The projected section includes constrained room nights, LY’s actuals, and the remaining projected pickup.
The pickup section contains information about transient room nights the hotel has picked up in a 1 and 7-day window for the current and prior year.
If research shows that an override is needed, the override can target the overall property demand, demand in specific room types, or target specific segments within the room types. All overrides can be entered in the corresponding override column. One example of when a demand override is needed is if the Revenue Manager believes the hotel will have stronger occupancy than what the system is forecasting.
Overrides can also target specific customer segments or room types instead of the overall hotel. For example, if there is a high-end slot tournament on this date that would drive additional demand in the top casino segments and the original unconstrained forecast in these segments is too low.
- In that instance, instead of placing the override on the total, the override would target the high-end segments impacted by the slot tournament.
- Overrides can be placed on as many customer segments that would be impacted, either to increase or reduce demand.
Once demand is overridden, the property would need to be re-optimized so that the rate recommendations reflect the new demand. Since these overrides were done previously, the rate recommendations we are seeing already reflect this expected demand increase.
Would you like to continue diving into guestrev? Check out our learning series below.
- Part 1: guestrev - a day in the life - introduction
- Part 2: guestrev - a day in the life - calendar metrics
- Part 3: guestrev - a day in the life - occupancy metrics
- Part 4: guestrev - a day in the life - pricing recommendations
- Part 5: guestrev - a day in the life - supply and demand
- Part 6: guestrev - a day in the life - forecast
- Part 7: guestrev - a day in the life - booking curve and competitive rates
- Part 8: guestrev - a day in the life - rate recommendation upload