Del Ross’ Post

#RevPAR is a cornerstone #metric in the #hospitality industry. Check out this HotelMinder Academy article to understand everything about it, from RevPAR #calculation to #growth tips. https://lnkd.in/eT6dT8er

IHG One Rewards is going to let more partners award its points to their customers – because it can now keep the money. Tucked away in the InterContinental Hotels Group PLC financial results last week was an interesting disclosure about its strategy for IHG One Rewards points. IHG is going to be more aggressive in selling its points to third parties to reward their own customers. Why? It’s very simple. For the first time, it will be allowed to keep some of the money. When you stay at a Holiday Inn etc, the hotel owner pays two types of fee to IHG: *the fee for the use of the brand (I5% to 6%) which must be separated out from all other fees payable to the brand owner, and is almost pure profit *the ‘system fund’ fee. All other money paid to the brand owner (for marketing, funding the loyalty programme, for website development etc) must be done on a break even basis. Hotels pay 4.75% of reward qualifying revenue to cover IHG One Rewards and 3% of room revenue towards general spending. This second pot represents very serious money. In 2023 alone, $1.6 BILLION was paid into IHG’s system fund. Historically, whenever IHG sold IHG One Rewards points to an external party – whether to its credit card partners, to you directly or to a partner such as Hertz – all of the money went into the ‘system fund’. This is now changing. IHG has received permission from the owners of its hotels to take a profit on the sale of points to third parties. For example, in a 100% bonus promotion, you can buy IHG points for 0.5 cents each. All of this money historically went into the system fund. Going forwards, IHG will buy points from the system fund at a set price – say 0.3 cents – and keep the remainder as profit. IHG is now highly incentivised to strike more deals with third parties to award its points because a proportion of the money flows into its profits. You might be wondering why the hotel owners agreed to this. After all, less money in the system fund means less money for marketing etc. IHG offered hotel owners a carrot. As part of a new deal, it is reducing the amount of money that hotel owners pay into the system fund to pay for IHG One Rewards. But does this stack up? *IHG will be putting less money into the system fund from the sale of points to third parties (unless sales volumes increase sharply) *hotel owners will be putting less money into the system fund for loyalty benefits when you stay in a hotel *hotel owners will be paid MORE when accepting a reward night On the face of it, the numbers don’t work. However the system fund is a big beast which covers a lot of different functions and there are many ways to reduce expenses, especially in marketing, to fill the gap. Link to our full article in the first comment. (If you're not one of the 2,600 people who subscribe to ‘The Travel Brief’, our free weekly LinkedIn newsletter for UK travel professionals, click into my profile.) #ihg #ihgonerewards

We wanted to share this great article with our Hospitality Business partners that offers insight to help refine your up-selling for your guests during their stay at your property. We know that we are constantly fine tuning what services and items of value we may offer to guests in order to get achieve ROI. This article from HospitalityNet.org by Jos Schaap offers insight as to what different up-sale revenue options have been proven to be successful during the current economic changes. https://lnkd.in/g-RkwsAG #hospitalityindustry #ROI #bestpractices

IHG negatively changed its dynamic award pricing algorithm: Here's what we know

Want to know how to use "Value Added Pricing" to boost your hotel's revenue? Check out the latest SiteMinder blog where we explain and advise on this interesting topic! #siteminder #hoteltechnology #hospitalitytechnology #hotelmarketing #hospitalitymarketing #channelmanager #revenuemanagement

Discover how hotel loyalty programs can drive increased revenue through upselling, personalized marketing, and enhanced guest experiences. Our latest blog post explores effective strategies and the benefits they bring to the hospitality industry. Learn how to maximize your hotel’s profits with a well-executed loyalty program. 🔗 Read more: https://lnkd.in/dAF4djD5 #HotelManagement #CustomerLoyalty #HospitalityTech #WebDevelopment #MobileAppDevelopment #HotelSoftware #IncreasedRevenue

New Post: Last-minute strategies for earning Hilton Honors elite status - With less than three months left in 2023, now is a good time for Hilton Honors members to determine what they need to do to qualify or requalify for elite status. If you spend much time on the road, you may have seen how valuable hotel elite status can be. From premium early check-in and late checkout to room upgrades, there are benefits to having hotel elite status with hotel chains. And as you’d expect, Hilton is no exception. Fortunately, there are numerous ways to earn Hilton Honors status, including staying at hotels, earning base points and having a cobranded credit card. Here’s what you can do before the end of the year to earn your desired Hilton Honors status. Hilton Honors status BENJI STAWSKI/THE POINTS GUY The Hilton Honors loyalty program has a base-level member tier when you join, but then you can earn Hilton elite status by reaching specific thresholds for nights, stays or base points each calendar year. There are three tiers in the program: Silver, Gold and Diamond. Here’s a look at how many nights, stays or base points you typically need for each Hilton status tier: Silver: 10 nights, four stays or 25,000 base points Gold: 40 nights, 20 stays or 75,000 base points Diamond: 60 nights, 30 stays or 120,000 base points Following pandemic-related reduced qualification requirements in previous years, Hilton has now returned to its standard elite qualification requirements. You earn Hilton base points at a rate of 10 points per dollar at most Hilton hotels, and you can earn base points on up to four rooms per stay. Stays and nights booked with points or free night rewards also count toward elite qualification. Hilton uses a calendar year as its qualification period, so you have from Jan. 1 to Dec. 31 each year to qualify for your desired elite membership tier. Your status is then valid through the end of the following calendar year. Related: Which hotels count award stays toward elite status? Hilton promotions Hilton frequently offers promotions that may help you earn elite status and bonus points. HILTON.COM In past years, Hilton has offered a Double Your Nights promotion. With this promotion, you could earn double elite-qualifying nights when you stayed in the last three months of the calendar year. During these past promotions, every night could count as two nights toward Milestone Bonuses and rollover nights. As such, these promotions could also help you qualify for Hilton status for the next year. These offers were a handy shortcut if members were close to qualifying or requalifying status to book a few extra stays before the end of the year. Related: 8 tips to help you upgrade your hotel room for free Status match You can request a status match if you are currently an entry-level Hilton member or have Silver status. All you need to do is submit your proof of a recent stay and proof of elite status in another competitor’s loyalty program throug

🔁 In Case You Missed It: HPG Advisory Services' Most Popular Blog Post of 2023!   "The Evolving Role of the Hotel Asset Manager: A Key to Success in Hospitality."   Given its popularity and the valuable insights it offers, we thought it was worth bringing it to your attention again as we begin to wrap up 2023.  📣 For a deeper dive into this topic or to explore other services we offer, feel free to reach out to Dan Akhtar, Managing Director of HPG Advisory Services.  📞 Contact: +44 20 8600 1166 / +44 7808 157796 / dan@hpgsearch.com  #HospitalityManagement #HotelAssetManagement #HPGAdvisoryServices #IndustryInsights #HospitalityTrends 

Nesuto Hotels, a hotel and apartment operator in Australia and New Zealand, temporarily uninstalled G3 RMS to save costs but found it led to more work and didn't improve their rates. They then reinstalled IDeaS Revenue Solutions' G3 RMS and saw significant improvements in market share, rate growth, and efficiency. “In the space of three months, we saw the average rate increase 30% which is similar to that of a 4 ½ star hotel. […] With G3 RMS, you can just sit back and enjoy all of the money coming in.” Check out the full case study. 👇 #RevenueManagement #HotelManagement #Hospitality 

The day-to-day responsibilities of revenue leaders have evolved along with the technologies they use. If they haven't already, it's time for hoteliers give some serious consideration to how they can build a solid foundation of support for today's revenue professionals. This piece from IDeaS Revenue Solutions' Christian Boerger offers some excellent suggestions for making it happen. #Hospitality #HotelManagement #RevenueManagement