foreign [Music] ppis in hotel management there are plenty of indicators that will say if the hotel is being managed well managed if there's something that needs to be corrected or optimized um but today I'll pretty much be talking about the ones that I um from my experience have been the most important ones um to be attentive to many of you have been coming to my classes you know a bit from me by now for those coming in the first time welcome um once again my main my name is Marco suit mayor and I have over 25 years of professional experience in the hospitality sector I work in hotels restaurants in the tourism business I've been dedicated um past three years mostly to academic and professional training and since then I've been joining NAB which is a school that has welcomed me very very well I hear lots of good things and I it's fantastic to see how much the students come in and in these master classes from other you know other areas of study to come to my classes so for me it's a it's a pleasure to have you over and it's a pleasure to share with you um my experience my professional experience and what have been um the knowledge what what is the knowledge and what have been the things I've been learning from my continuous education for something I keep on trying to study and to learn more and more every day um so let's talk into speaking about management and in this case management of hotels and what keeps us looking into a hotel management quality in the sense of the indicators that I'll be talking to you in a moment thank you for the lessons of the past let's open our ears and Minds for the future I hope you're ready and the challenge will be um to have you um you know dive with me on the three main elements of this class um we all know that the transformation is here it's exponential um digital worlds and data um are today profoundly giving us lots of information um but choosing well the data the quality of the data um because making a good use of data and making quick good decisions um needs to be looked in the sense of not only quality data but what is the data the key elements that will give me the sense of doing good needing to measure to optimize the correct um at the end of the day to make better and fast decisions so I can optimize my business in the sense the hotel business looking always to trying to find ways to increase profitability so let's have a look closely to the key elements of this everyday Hotel manager indicators that will say if we're doing good or not so good of course we never we never um or not not we never I correct we always should come back to Peter Drucker and this big big thing a manager in this case a hotel manager he cannot manage if it doesn't measure so what will it measure what are the main important points you should measure to then know if he's navigating a smooth Ocean or if he has ways coming his way so let's look today into two main elements the main hotel management kpis and also the impact how much we need to have skills a trained operationals people working in our um in our hotel so that we can have them um you know reduce the costs reduce the waste reduce the amount of resources we need um so we can make more profits out of the sales uh we are getting into our business um very interesting and many of you um never thought of it if you're not working in Hospitality um very interesting is to see that there is lots of ways for us to get Revenue what we call the distribution the revenue channels where we get sales from and how we get sales from the tools the techniques uh the means the channels um how do we manage these drivers it is completely different to get a hotel room booked by um what we call the online travel agents like booking or Expedia or to have somebody calling into the hotel or booking directly via the hotel e-commerce or the phone line or walking in there is commission involved and it's different if you buy last minute or if you buy um you know with big Advance um it's different if you have a promotion going on it's different if you're a corporate client or if you're just um you know an individual client with no special agreement done directly with a hotel from the corporate company so there's lots to be um involved lots of decisions to be involved because at the end of the day all these will impact your um not only your Revenue but your net profits okay so no matter how much the demand the hotel has one very important thing is the perishability of our stock in a hotel with 100 rooms um we can only sell 100 rooms and the if I don't sell them today I won't sell them tomorrow um compared with let's say a shoe shop um the shoes I don't sell today they will still be on the Shelf they're still being stock for me to have a next try the next day you know tell us the stock starts again and again every day so that's why volume is important to have this occupancy rate high occupancy rate sell as many as I can um if a certain amount of rooms are not sold today tomorrow it's a whole new day a whole new stock so all the potential Revenue I don't sell today um it's a lost business um so important to know this in advance and important to know that there is moments that if I low my price to sell in high volumes there is a cost on that there is a perception from the markets um that I'm depreciating your value of my business and also there is the perception that let's not buy let's wait because if they don't sell last minutes we will get a better deal and all those that bought um let's say two weeks ago we'll check and see that suddenly the prices are down because we're desperate to sell um the last rooms what I'll do is to cancel my reservation and buy again the same room for a lowest price just because I managed poorly not only my stock but my prices so having this balance of what I actually have to sell what I predict I can sell you know this forecast and then understand according to the demands uh how do I put the price on sale also looking into my direct and indirect competition it's tough It's Complicated because I'm not selling at no cost um you know even for uh own channels that are commissions involved regarding the digital marketing the cost of acquisition of conversion to getting the the bookings in in the funeral of sales and also when I use third parties um to be the distributor channels to be the place the placement in my P um the My marketing P so Price Place uh product here and promotion um in the marketing scheme plays a big big role and at the end I need to look into it's in average is the kpi um in average what's the price I'm selling day by day week by week then by month by uh tree master uh quarter semester annealy I need to have targets very specific targets to heat my uh daily average rate the formula is presented here it's very easy it's the title amount of room Revenue the amount of money I I collected in a certain date divided by the number of rooms I occupied um so this pretty much the first uh the first kpi I need to look maybe I decide to do a higher rate and I don't sell so many rooms or I go down with the rights and I have more rooms sold so it's this balance that occupies um lots of our energy to have the right balance because we know that an unoccupied room eats money that I'm losing but if I occupy a room below a certain amount of money I'm losing money as well not only because of the depreciation perception of the market because also there is costs involved uh in rooms being occupied below um the hit points of the costs of laundry and depreciation of the product itself the bad water guys um the cost for the breakfast is included and so on and so on it costs money to have people in the house so having this balance is very very important as I was telling you before having an understanding how this goes on the online travel agencies on the tour operators that sell to gross sellers um brochures that you can find in a travel agency somewhere in the world they have been buying through tour operators the hotel um stock so the hotel stock is split related and separated and all these layers that you see have aggregated recognition everybody has a scheme there so understanding this the scheme of distribution is very important uh because not for the client but from the hotel manager perspective um the costs of having a clients in coming into our hotel is completely different um not only the cost of getting the room occupied but also the cost of the distribution the clinicians involved and this will mean that I need to decide um which ones I should be using and not because I am controlling all these channels is also very complicated so as I was telling you the first indicator is the average in average what is my target I have my objectives I have my forecast I have my um budgets and then I get my results and I compare with what I had in budget for the average daily rate and what I did last year I compared with similar period last year and then there's the other one in the in the in this balance this very tiny and complex balance which is the amount of rooms that I sell and the occupancy rates as you can see here it's pretty much the total of numbers of rooms that have been occupied um divided by the total number of rooms that I have available my stock the total Hotel stock careful because the total number of occupied rooms um can be and I have sometimes in my hotel not only people paying very low costs um because they got discounts but also because they came with B degrees of commissions involved um the you know the client might have paid 150 but what I gain is 70 euros okay against a client that bought for those 150 or 120 and I get totally that amount of money in my pocket let's say because there was no commissions involved and the client just came in directly in saying this I also occupy rooms that can be free of charge journalists Partners uh even you know in the hospitality sector you know colleagues from other hotels within the same Brands so having this set the calculation of occupied rooms and this occupancy rights this percentage should aggregate all and sometimes we should disaggregate and reduce the number of rooms that we have occupied free of charge or at no charge without any Revenue at the end of the day um very very important and in the phases of Investments looking at cities and destinations um you know data a very important factor to evaluate the Investments and how much in the operations I will get out of a property of a lens of an investment it's what we call the Rev par Revenue per available room and in this case the calculation can be done it will get to the same you know result at the ends but the calculation can be done either way I'll use the average daily race and it can be for a date a week or in average for the week or for the day or the month um times the occupancy rates I had for that period or the total amount of Revenue the total amount of money for the nights or if I want for the week for the months and so on divided by the total number of rooms that I have in stock the total amount of rooms that the hotel is and this pretty much gives me how much money not the occupied rooms but uh in average even the occupied and unoccupied the average of the you know according to all the stock I have on sale for a certain period and that will give me how much I can get out of the total rooms I have Str is a very well known company helping hotels to manage you know their navigating their way out of uh um out of the revenue management side of the business um they are very well known um there's a fee to be paid because they share data relevant data that can help us out and this slide from Str um pretty much summarizes what I've been telling you um since the beginning of the class uh you know your supply um you know the factors of distribution Distributing your supply looking into the marketing the product the price where you put them on sale the rooms the products the stock you have on sale and then the demand the market itself um the rooms that you manage to sell on a circuit periods and then the amount of money that you gathered from those sales and then you have that balance in between the percentage of room that you occupied in the in the period and the average daily rate in average because some rooms were sold with a discount later on with Ira's the same as airplanes that we know that whatever we see it's next to us there is somebody else that might have paid the same or below us so it's a yields it's something that it's not fixed uh even because we have different typologies there are Suites there is sea view there is a pool view there is different prices because there is different things with breakfast without breakfast um families big rooms small rooms so in average we we calculate this ADR so these two main indicators occupancy and average daily rate will give me the third important kpi and these I would say to start with are the three most important kpis for the hotel manager to have a vision on how well is he doing according to budgets and according to comparing to a previous year slash periods previous experience pretty much what we do is also to compare with hotels within the same brand and within the same scenario of objectives uh or within the the you know the competition if we manage to get the numbers uh here uh what I add it's what we call the Trev par um in the traffic it's total revenue it's not only a accommodation and bad nights rooms uh salts because in hotels we sell other services many hotels have their restaurants and other um you know another Revenue meeting rooms uh spa and so on and so on so there is other um products other services we sell so it's interesting to see that for example um in hotel one I have three other rooms and in hotel two we have the same stock to sell every day 300 rooms and in this period even though the room nights available are the same the an amount of money the total room Revenue was different um most probably because one sold the rooms more expensive than the others they did the same occupancy but at the different rates then you see that one hotel one sold more in food Revenue it's natural because maybe if you charge more you are gathering into your hotel people that can spend more money in your foods and in your restaurant that's a marketing strategy that needs to be discussed but sometimes we see that the more you charge the more you sell in other services combined because you're hitting um a market a segment that has more spending power for massages for mini bar for the room service and for other things um but then you have to aggregate the service and for the service I have something else later on to to bring you to the table so after all this you find your total revenue and then you find what you use your rev bar you know um by now you define the total revenue by the stock you had to sell in the period and the travel part which is the total revenue this Aggregates also not only the revenue of accommodation um the the the rooms um but also the total what you gathered in other services divided by the amount of rooms that you had in stock to sell during the periods this is the kind of dashboard we work this one is a print screen of a hotel monthly reports where you can pretty much see where it goes um you can select the periods and then you start comparing your ref bar change how much it it changed um compared with the comp set and this is your competitive sets uh if you manage to get the data um in gross numbers with the hotels you're comparing yourself with you can see if you're above and below where where is it fluctuating along the the time and also on the corner on the top Corner left you can see pretty much where your competency is coming from tradesians what we call the direct clients people that are passing by what was the the share of occupancy that came from that segment how much did they pay and of course these guys pay more and they have part um and then by groups um you know you're discussing in big big volume maybe you have a less a lower rate but of course when you're talking with a group agent um he's bringing you lots of business a transient comes now and maybe it will come later on so here you have to have more of a you know volume um discounts and contracts which is the redistributed that will take you internationally and can check your Brands and you know the scheme that there's more people involved um taking a share of this um it can be scary in these numbers you know that's from 241 ADR from a direct clients and how much you need to give um in the costs of acquisition uh almost to 90 Euros um four or dollars in this case uh to be paid for for for the the contracts but of course there you go maybe you sell less of those and those are a small percentage uh it will depend on the destination it will depend of other factors um it is very important how you decide to distribute your your business your stock um because at the end the average and of course the ref part uh will have an impact on that uh of course you keep on comparing uh your competitive sets you're comparing yourself with previous year how you're doing this year versus last year um you know your average daily and you know as you go by month you see how you're improving how you're going uh according to um what were your targets or uh on a accumulation uh as the year goes by um another very important factor to analyze is the length of State um having a client staying over more nights it's very interesting for two main reasons clients that stay longer spend more or they have a better opportunity to spend more on your services you have more time to engage with them and they will probably will have um more um you know direct relation with you they are there to use your services Spas uh the par the pool bar and so on I I hear a microphone on now I don't know if there's somebody willing to okay I'll I'll give you that's a promise uh Moment by the end of the class um a moment an opportunity to turn on your microphones and to uh um bring your questions please take talk those down uh because I'll I'll give you time uh for for that uh so as I was saying the the average daily uh length of say how many days they stay with us are very interesting the more they stay the more probabilities we have to sell the aggregated services but also because that room is already occupied I don't need to find another room um so another client I don't need to spend extra commission to have a new client coming in I don't have to spend you know the the cost of acquisition for the new clients um so it's very very interesting to have long Styles also my costs are different uh the turnover of completing uh the cleaning of one room that is uh um a checkout or a stayover is completely different and the total occupied room nights rooms occupied per night divided by the number of booking speeds minus lengths of stay um this is pretty much how much I know how long they have been staying many many cities many many destinations Resorts they do a good job or at least they try um to do a good job to get the clients staying over and over um that's an important kpi not only for a hotel but also for a region or for a specific City or Village to get a touristic interest that people stay there longer um there are variable expenses um when we are looking into having a room occupied okay this is just a a brief idea uh more important than the amount of money um but it's very very interesting when we start saying that the room attendance has a certain amount to be to be paid to her uh housekeeping there is employment benefits there's the linen there's the guest supplies the amenities there's the cleaning supplies there's a travel agents commissions that can go from 18 to 25 for example there is the credit card commission uh for everything that the client pays directly there is brand fees and many many times hotels have Brands and they have to pay for that franchise fee and there's everything else regarding energy costs and some others maintenance of the building Etc so these variable costs uh happen every time the door more of a hotel room is is opened below this line it's totally um and interesting so knowing this number is very important so every time I I I turn down I turn open and I open cells and I try to sell something I need to know what is my variable cost and what is the incremental profits all these numbers must be figured out so I can pretty much have a basis to start bringing profitable to the table very complex in the hospitality business and it's not only an Hotel business it's food and beverage management I think I've already shared with you in the past um some some of my thoughts on this it's very passionate uh many people open restaurants which is fantastic but many people close restaurants too within the scoop of hotels or not hotels um I will share with you um a movie it's a little a little film it has a little more than one minutes that really has a lot to say and should make us think um it's on YouTube it's food waste money wastes and it's not only on the sense of sustainability and money that I share this video with you but it's also for us to reflect on how important it is to have people on board the hotel operations that are really taking care of reducing the money by reducing the waste and making the most um out of the products the very expensive raw materials that we have to transport transform our food and beverage take a look and by the end of the class if you have any comments on this one I would like to hear from you let's see foreign [Music] foreign [Music] of course I've been since the beginning of the class talking to you regarding what is the you know the management of sales revenue management but there's the cost part of it in the kpis we should be looking into we should also be managing and taking a look into what are the costs getting the portions right and not preparing too much food not too little uh having good partners having a good thorough food and beverage management capabilities are very very important because it's not only uh the the the conscience and the sustainability and wasting food that we should not be doing um but also um by the amount of money and we're talking on management money many speaks loud speaks very loud because this can jeopardize my profitability if I don't have the right tools if I don't control my my food and beverage um business from the sales perspective but also from the cost perspective that's why I have to share with you and one print screen of something that is very straightforward um that looks into the restaurant part of the hotel business in this case uh there is the the sales of the restaurant the cost of the restaurants and the net profits um net profit in restaurants are very different than in the accommodation side of it the amount of people the amount of energy space um the costs on the raw materials and all this waste that we just saw in one minute video speak a lot so I split uh my information by the number of covers the amount of people I had for breakfast lunch and dinner um the amount of costs for breakfast which is usually aggregated with my um hotel room nights how do I split that into the food and beverage Revenue departments and how I take the cost from it that needs to be accounted for and and also in terms of sales if I sell back first on top of my room night or for patient transients that come the lunch the dinner other Beverages and events other things that I might be selling apart from the restaurant let's say the bar and then I have to take in consideration like in the whole the whole hotel operation in this case very specific per departments um accommodation Department itself the maintenance department itself sales and marketing department itself but in this case the food and beverage it's heavy what we have in terms of the salaries labor costs manages costs the food and beverage the inventory opening purchasing and final inventory to have its clear on how much not not what was bought but what was used controlling the inventory and then off we go with the cleaning supplies and glassware Cutlery and all other machinery and everything else I need to make sure that my business is rolling this one for example is also on the the food and beverage parts of the um of the analysis but from a different perspective the sales the cost of sales the labor and then the prime costs um we call it Prime cost when we take away the costs of sales in terms of raw materials and the labor cost those are the what we call the prime costs in food and beverage and then we go with other controllable expenses and the non-controllable expenses until we get into to the income before income taxes which is deducted after all the above um even included the corporate overhead costs that I might have interest expense and other expenses before taxes which can be very very very narrow and usually are below in the food and beverage alone below the to the two digits percentage uh so controlling this is very important because there's a lot of money involved lots of costs involved and um it might be very difficult um to um get a good number out of its or a positive number of out of it um of course accommodation has a different scoop as I just told you at the end of the day uh what we call the ebita in hotels I beta is also something we look into some people look into only at the GOP the gross operational profits total size minus the total costs um here there is a bit more uh to be as I told you um to be considered um some people might call the the GOP uh if you really put them in everything before interest tax amortization and appreciation and there you go it's all your Revenue minus all your X places excluding these interest rates the taxes depreciation and amortization which are things that usually the hotel manager doesn't have a same one um so let's say if you're uh you know your revenue for a periods of one year it's one thousand dollars your total expenses are 700 um 755 um five 755 550 US Dollars uh you're a beta uh would be in the in the range of 249 500 um thousand dollars um this is pretty much the most important ones um it is important uh to analyze um uh divita because this kpi is pretty much um where the the the the the one number comes to say if we we were able to take the most out of our stock of our operation of everything we do and it is very important that we have a very specific targets um on a quarterly um six months three quarters you know and and adding as you go along the year and finally here on here so you can pretty much know um if you're hitting your targets or not hitting your targets so we beat that at the end of the day the one hour that will say if your business is profitable or not here there's an aspect that I think it's important and summarizes pretty much what we were saying uh here we are looking into um you know uh an year on year analysis uh 2006 to and 2007 uh 2016 2017. more important year than the years itself of it's the numbers and understanding how things can be analyzed pretty much this is how things would appear you know how much in terms of Revenue sales did you do in your rooms couldn't beverage other departments and what we call the michelinians income which are not departments aerial sales little extra things that you do that might bring you some sales some offers some gifts um some other things that are not interconnected directly with the Department like the spa or um you know it's something that is pretty much spreaded around um here you can see in terms of numbers net numbers and percentages how much does that line of sales corresponds what is the quota for the total operating revenue and you see how it evolved from one year to the other where are the changes are they in line with what we expected with the shifts with the optimization with the Strategic decisions that we did by the you know by the moment we finalized our budgets um in this case for example um we are having a better more sales we dropped in other departments but we grew a lot on food and beverage was that something that we were looking into having um and having so so big in terms of increase well it's interesting when you see that the expenses didn't raise so much um compared one year to the other the food and beverage the Department's expenses increased 7.3 it's important that they do if you sell more on food and beverage you spend more on stock um it's healthy that you do um but if you do not in in the same proportion in rooms uh you did better you did much better um more in terms of sales but more on expenses what's going on maybe to get more four percent of your room sales you need to get more expenses uh on housekeeping feeling better or more amenities and spending more um or maybe your electricity uh raised there because you interconnect that with your room's expenses then you have your gross profits and then you start putting into a demonstrative telecommunications sales and marketing operation and maintenance utilities that might go into the line above or might come year down um it depends a bit on how it is um fixed per hotel and operation how this goes of course there's the uniform system of accounts which is the financial tool for all hotels to be linked to so we can compare apples with apples and it's very very interesting when you look and see how things are splitted then operational costs the non-operating income and expenses and costs how it goes on earnings the replacement Reserve that you need to have and then your ebitda that you have at the end of the day which with all these changes you can see that marginally from a total operating revenue of 10.5 million comes down to 2.5 million in ebitda results so there's lots of costs involved but when big volumes go little changes can make a massive difference and you hear see that's from one year to the other you improved your a bit in this case of more than 9 sense and it's good and interesting to see where you did good and what was the shift many times these numbers will point you to where you can optimize and where you should correct and this is pretty much what hotel manager does of course knowing your break-even point is important along the year what's the number of room nights or meals that you need to sell to face your um fixed costs um because you know that's variable costs will still occur it's important to figure out this number this presentation will be passed on to an app for for to be available to you guys um I added here a little link with the text on Hospitality blog that is very to point a very you know little article same Breakeven Point analysis the what and why and how you should be looking into that uh with a a very good example also I'll be adding in this presentation something very very cool very simple it's about ice creams okay the ice cream example okay if the ice cream goes and costs X and the variable cost it's why what's the amounts uh fixed costs uh where how many cones in this scenario should I be looking into selling to make sure that I make a profit out of my ice cream point of sale it's very two points it's a YouTube for you to watch at a later stage I included the link in the presentation too um very very super extremely important to have ppis that are not only quantifiable in terms of sales in terms of costs but also what we call the quality index of what we are saying and quality is measured mostly on the reputation online online reviews and the amount of online reviews and in average what does the customer says about us is in today's world more and more significance people shift from buying and making a reservation themselves to another hotel just because of the rating that hotel has so at the end of the day it's what what I say about my Brands it's not what bloggers or others say about my Brands it's about what people that came into my business and paid have to say about my Brands and at the end of the day you're only as good as your reputation and in your today's world it's the online reputation so having an understanding that the customer right after the booking on the phone by email during the check-in you know all these are moments that most probably and more and more are online are digital um and then you have to consider and to have a scheme that will protect you along the way you know plasma Centric omnichello app selling so you can pretty much add to the table in terms of sales but at the same time controlling this conversation that whenever they come they are totally in line to the expectations at the end of the day quality it's a very simple formula the quality is defined by reality minus deactivation of the clients marketing should manage those expectations okay so managing the communications along the way and making sure that the clients are happy that they really feel that whatever they're paying um it's above and beyond what they're expecting and there is really something extra on the emotional side because at the end of the day that's what we do in Hospitality it's to sell room nights to sell meals but most of all um our business is regarding memories and the memories comes with emotions so was it good was it clean was it comfortable but at the end of the day was it nice was it sweet was it caring was it totally um so nice that the staff deserves the good rating there is a platform um software that helps otolia's review Pro um that helps us to manage all this online reputation and this is a software company um with the amounts of data they had they did some partnership with Cornell University and they came up with a paper that is dated 2017 but I'm sure that if it was today it was just more of this and what they figured out is that in a rating from one to ten people that tend to go online spend their time to say something about their hotel experience whenever they give a rate of nine and above they refer to the stuff stuff is the number one that comes up so it's the people that really does the the rating the positive ratings on the other side what gets your reputation down it's Hardware it's the hotel the room the location things that uh only gets the stuff done so if it's the staff that can get you the advantage of giving a 10 you should put your stuff and train your staff to make sure that they know that they have the power uh to change they have the power uh to get the reservations to be um converted um in Booking just to give you an example uh I can do my research of a destination um and I just put Villanova Gaia that's where I'm going nearby Porto very nice um I just do my search and then immediately something comes up and what comes up are the hotels or Hospitality businesses that have higher rating okay and another thing I can do is to put a filter and I can decide just to go for the ones that have nine plus which means that these are the pole positions these are the ones that clients consider to be the best in the sense of having a better reputation so at the end of the day there you go having a higher reputation gives me more visibility more probability of being chosen but at the same time to be chosen by the ones that are willing to spend more therefore getting more average room rights it is also it has also been studied that an increase in reputation gives me the advantage of being able to increase my average room rate because people are more keen to spend more on hotels that can get more real reviews saying that these guys are exceptional so I trust more my money and my choice uh before I get into uh on uh you know Brands that's totally knowledge and I even um you know and always you see that it's the 9.6 it's the staff more than the facilities of course it needs to be cleaned the location is important but at the end of the day if you get get great Wi-Fi stop will always be the ones you know pushing up your rating and getting your conversion I've been speaking about uh hotels kpis uh management kpis of Hotel businesses um this is a very uh broad list of skills for those that are Hospitality managers um it's very broad 360 Degrees uh the competencies the the skills uh the abilities uh the training um and all the the the profile for uh becoming an Hospitality manager um getting a control of the kpis and having a team well-trained uh knowing your reputation doing the right things on your operations and it's tough It's passionate and involves all these capabilities so is like or she's like sometimes I say the Superman I'm finishing off just showing you this final dashboard to say that this is pretty much what we look into this is a as Hotel managers driving our you know our car our big car with the motors on with the stuff on our back uh you know pushing harder and on the navigating panel this is pretty much what we see rev bar Revenue AVR where did the booking comes from the costs of acquisition of distribution uh how did I how am I doing against budget and versus last year who do my clients come from um who generates more um review how do I do against my competition this is pretty much it even though today um people more and more say that there is a new leadership indicator um TP comments indicators in the new leaders uh think and 10 more to say that ppis are getting people interested informed involved and most of all inspired or otherwise you won't make it I've selected a handful or two handfuls of links of relevant articles uh for you to read afterwards it will be in the presentation for you to learn more see more um and study more if you feel like this is the kind of information you need to get stronger on from my side you know I'm Portuguese I'm here in Portugal we say Obrigado but thank you to you all um Namaste [Music] um thank you so very much for being here with me um I'm Martha and I'll be giving you the chance for the next let's say 10 minutes yes I think we have 10 minutes to talk about the contents of this class it was my pleasure to be with you and now I finalize my presentation uh just by saying that I'll be back I'll be back on the thirds Spanish time 7 pm to talk about marketing planning and strategy so once again my name is Martha and it was a pleasure to prepare this class and to be here with you speaking about hotel managers kpis and getting the job done properly now it's on you how can I help you what can I do for you is there any question is there any comments you would like to share let me have a look into the chats well compliments to everybody there Nikolai Sidney and Lena Catherine thank you for coming by Abdul well by you from Indonesia bill I see du Roy's Catherine we are aware everything costs money yes yes I was just two minutes out of time but you know it's a technology it's good to have you this morning thank you very much well I see your message from Miguel yes Miguel the recording the class is recorded exactly to make it available at a later stage and same as the PDF of this presentation as I told you uh all this will be passed on and it will be available in the student platform for you guys to see this at a later stage uh so yes this will come this will come back to you if you if you look for it for sure it will be available okay any questions comments for stopping by yes ma'am thank you good good lecture thank you thank you very much [Music] Abdul Muhammad um please go ahead yes go ahead a quick question marker what I recognize um you know since the covid-19 pandemic this has drive a more analytical approach in the finance accounts and administrative Department of this hotel because um you know we you don't want to have a to turn away I guess because of your price because one of the key things you have fixed costs what you must cover and so therefore the average daily rate is a critical point for um for the front desk right reservation so is it that that's a process because I've never worked in that industry before and I presume I would love an exposure in Europe to see what it is like there because for me in the hotel you have to have the information at fingertips because your point is service and you never want to turn away I guess if for any reason at all indeed Catherine indeed uh but there's a moment or there's two moments where um turning down I guess as you approaches your um Hotel desk and you have room still to sell for the night you shouldn't be selling uh one it's to sell below your cost price point okay so having a very very analytical and robust and uh correct calculation of your costs uh variable costs and fixed costs is very important okay so Catherine because you might be selling below your costs and you can say well that's Investments I'm I'm gaining new basis of clients well maybe that's a strategy but as a whole you should never sell below your cost points that's one scenario uh Abdul you have your microphone on I don't know if you have any question I'll come back to you in a moment okay um Catherine the Second moment you shouldn't be selling at any costs is also because of depreciation okay taking care that if your price point and the price online is 150 for some reason that your Revenue decided that that's your price points and send men many times luxury brands do that what they do is that they never um they never um go below that price because saying that you can go to a very high-end hotel for a very cheap price but just because it's empty it will mean that well you don't deserve to be paid more so there's also a perception on the price sometimes you prefer to have your hotel half empty but to stick with the price because you have a long-term strategy on your pricing and once you start going down and down and down as I said before maybe people will just cancel the reservation to re-buy at the lower price so having this strategy of always going up with the prices even though you don't sell them all but there is not the only daily but by day strategy it's something that you count every day but there is uh you know a strategy short meeting long run that needs to be accounted I totally agree with you that more and more things are getting more analytical and fortunately they are things will were managed to in some cases more I wouldn't say in an amateur way but data wasn't being so much looked into today the the um there is more sensibility because the costs are higher Human Resources land uh real estate construction um raw materials everything that is involving the hospitality sector is get costing much much more so we need to be much more careful in what we do and sometimes we go a lot on volume and I many many internment times say to all my consultant clients be careful because if you have 100 rooms in your hotel and you say by try to sell the 100s for um 100 Years you'll get to a certain number maybe you can do better by just selling 85 of those rooms at the higher rates you will get more revenue and you'll do better service so this this is the kind of balance that Brands managers and the teams should be looking into and there is no two days equal that's for sure Catherine yes yes I understand that quite clearly because um the management will take a decision because um Break Even point and has to say they will do some category and you know giving instruction as to the the to the to the size of discount that may be given if that's so but we must not um go below break even yes it must be for some stressing reason why you you you would have put up two to three rooms Beyond um um and break even and that is management decision absolutely and it's key elements as the manager um the the manager should also on the top of uh you know having the online sales open all day until you have stock to sell uh for the walk-in what we call the walk-in gas that compares to the hotel that's five o'clock six o'clock early in the morning late in the evening uh can I have a room do you have a room available what's the price um of course you can look into the hotel online or the booking and we can be wise on saying you don't need to to consult I'll do you a better rate because you're here and there is no costs of uh you know um of having the commission involved we do that uh but what we see more and more is that because of the convenience of the online there is more and more people buying online and not appearing in the hotel risking not having a room okay because you can they can see the you know there is inventory or not uh so most of the times how hotels do to make it faster for the team is okay you check the price that is available on the website and you follow through maybe with a five percent discount on something and they will have somebody in the organization looking into numbers starting the demands coming up and down with the price engaging with promotions um that is called the revenue manager and indeed this guy is more on analytics than on the relation and on the services more an Excel guy than the the smiley guy but we need all together to do the best on on the on the property results because it's very expensive expensive to put a hotel um together it's something that you decide now once the door is open it took you years to construct for the legal things to to put it all together and then it takes you time to build your fans and to renew and do it all over again and to pay for your investment and your operational costs so it's something that can range from 5 to 7 12 15 years since the dates that you decided you're going to go for a hotel as your business um so it's a long it's a marathon it's something that you measure every day but it's a marathon and it's a complex one because clients shift and you're stuck with a decoration with your four walls yeah clients shift so it's very complex but very passionate yes yes and the risk of the risk there is very very high very high in terms of external external exposure to pastel so the external factors are very very complicated from uh terrorism to pandemics to economics to Legal environments um so it's it's it's it's it's it's it's complex and that's why it's so passionate and uh it's it's taking more and more um for the hospitality sector to um to be more robust I wouldn't say more professional because I think what we do is correct but be more analytical we need to be more careful on what we're doing um as even on the service side of the business yes so thank you Martha I hope to see you when I thank you Catherine I I suddenly uh couldn't hear anything else from you that it was cut but I really appreciate your comments and this little discussion um thank you everybody for coming in uh as I told you I'll be back very very soon Paul I'll be back next week um at 7 30 uh Spanish time okay so China thank you for coming in 10 minutes but uh make sure if you want to come for more let's talk about marketing I'll give some examples on the hospitality sector I'll be back um next week at a later hour but I'll be back for you guys thank you so much for having me thank you enough for the opportunity have a lovely evening thank you very much see you next week