Hotel Consultant & Leisure Facilities
Hotel Yield Management is about one thing, and one thing only. Selling the right room to the right person at the right price. This means understanding the differing sales methods and channels that make up your inventory distribution and sales pipeline and ensuring they are being yielded and controlled tightly and with sufficient planning. From travel agents to channel to voice to direct understanding where your capture rates are performing and at what cost. ADR and REVpar means nothing if 25% of that room price is going to Expedia. Every yield manager can argue a different story and still be correct, yield management whilst a science has many differing opinions. Each property will always be unique in how it attracts its customers and what sales strategy has the best outcome for NOI but our boutique resorts range in NOI from 28% to 58%. The results come from understanding the customer, understanding the pace and setting the rate accordingly. The icing, whilst property dependent, is in the sales team both group, corporate and travel agency which if positioned correctly can, as part of an overall strategy create pure incremental revenue, increase avg occupancy and most importantly provide a base of sol rooms well into the future. OnSite takes the core components of each boutique property and creates a clear yield management, sales and operations plan to create the most efficient route to market for increased profitability. Our results, go straight to the bottom line, every time.
From small boutique properties in major metropolitan areas all the way to larger properties in smaller cities – the answers are always in the historic data and with appropriate analysis results can always be seen in under 90 days, often much sooner.
If you recognize your property is under performing, call on the company that has a track record of not recommending the results, but implementing them live. Your partner to increased returns.
OnSite Consulting is delighted to be a Hotel Consultant & Restaurant Consultant to Genre Hotels whose portfolio of properties include 22 boutique hotel properties across the United States.
Hotel Food & Beverage is the new “Energy Fee” and has changed and over the past few years, OnSite has pushed hotel operators of all sizes and scopes into understanding that the restaurants and bar facilities can never be loss leaders and more importantly they have a competitive advantage over non-hotel neighbors. With an existing infrastructure including parking, amenities, space and service you already have greater facilities and infrastructure than your restaurant competition. If you are not by default having a high capture rate during breakfast then you are just leaving money on the table. Therefore by just providing a value proposition greater than your competition not only are you attracting your existing guests but you can expand outside your captive audience into the local community and businesses to drive revenues throughout the year. Your restaurant competition does not have the marketing, sales, design or systems to drive revenues like you do nor offer short term loss leading promotions to drive growth and visibility. The cost of customer acquisition and revenue growth can technically be at break even or just under for a short period, as the fixed costs are absorbed across the entire property, your competition does not have that luxury. Therefore hotel operators must look at F&B as a significant revenue component of the portfolio that can provide cash flow during the off-peak seasons, days or times.
OnSite offers specialist hotel and leisure consulting services. We work for hotel owners, operators, developers and investors and those planning to become involved in the hotel and hospitality industry. We work for other leisure venues such as shopping centers and entertainment venues where the same hospitality skills and experience is required to improve and evolve the customer experience and stabilize and upgrade the backbone of the business.
By providing a comprehensive consultancy service with an understanding of the demands in this sector, we are able to pin point which areas of the business need attention. The hotel and leisure sector operates in an exceptionally competitive climate and OnSite always seek to emphasize the value of their services is a reflection of the quality and experience of their team. Our team have a profound understanding of the issues that leisure and hotel operators encounter: They have tried and tested skills and methodologies and a perspective that, together with OnSite’s F&B colleagues, provides expertise across the spectrum.
Bringing us in should never be looked upon as an unnecessary cost or position of last resort but rather an investment in our expertise, providing a fresh and independent audit of the business. Hotels and leisure resorts rarely have long term tenants: customers are generally short term visitors and operators have an equally short amount of time to deliver the right service offering, with the right pricing – not forgetting with the right margins. We understand the delicate nature of this sector and having operated and managed profitable hotels, from start ups to business recovery, we are uniquely qualified to advise you on the areas where you need help.
Hotel and leisure venues are market sensitive, complex and capital intensive at times and the market dynamics affecting their operation are vast. We know how to assist you with developing your strategic planning, performance based management and operating structures alongside menu engineering for room service and franchise negotiations for food courts to negotiating with movie theater operators, landlords and bed linen providers.
Each client requires a bespoke solution to a set of business challenges which we see every day but which focus on the same set of results – an improved business model – every time.
HOTEL & RESORT CONSULTING
As Hotel & Resort consultants, we understand that recreational real estate holdings are more than passive investments, they provide a service to the traveling consumer and only with a strong revenue management system, operational efficiency and targeted positioning can one expect maximum results.
The hotel and resort property is the quintessential hybrid asset as a dynamic mix of the physical asset with continued operations.
There are three core services of the OnSite Hotel & Resort Consulting Group:
(1) DEVELOPMENT For real estate developers who understand that hotel and resorts are among the most complex property types because they are not solely leased out buildings, they are operating businesses. Determining the requirement to be brand dependent which accounts for in excess of 80% of the market, or the unique value proposition the property must have to compete is our specialty. Hotel developers needing access to experience, understanding and critical contacts can place a competent developer at an extreme advantage.
(2) CONCEPT STRATEGY For land owners, developers or existing leaseholders who believe the parcel they own may be appropriate as a hotel often need assistance in determining strategy, uses, financial planning, branding, flagpole, operations and a feasibility study. This includes not only the rooms but also the amenities (restaurant, spa, business office, lounge) and their size or performance expectations of operating within the property.
(3) OPERATIONS MANAGEMENT Understanding the hotel & resort business is a unique skill set that takes over after the design, financing and build out of the unit. Without a strong operation geared towards a revenue management system that delivers the financial returns, the investment
can and will be inevitably damaged. Understanding a hotel customer can no longer be judged on the room rate but instead, like a casino property, on the total aggregate volume spent within the resort.
The backbone of the OnSite Hotel & Resort Consulting group is executing engagements within the market to drive greater returns, higher profitability and long term sustainability.
The Revenue Management System executed by a hotel is more than RevPAR its total resort control designed and executed to provide a value experience to the customer at a great return for the hotelier.
LEISURE CONSULTING
Leisure consulting crosses many industries, ranging from concert arenas to sports stadiums to private clubs, shopping malls and cinema’s. In all scenarios the requirements remain the same, excellent customer experience at a profitable price point. Whatever KPI the particular industry uses and whatever yield management analysis each sector undertakes, the results are always in the bottom line.
Our Leisure Consulting services come under three broad categories:
(1) Investigation Understanding the demands of the market and the product or portfolio of products that can mitigate the risks and provide success. The feasibility study includes not only the market investigation but also the site and operations analysis to provide accurate financial data to best determine the value of the investment.
(2) Yield Management Often operations are operating in the black, strong revenues and a large profit margin. Governed by the captive audience within a sports arena, cinema or mall. They KPI of yield management however often shows that considerable improvements to the bottom line can be made through specific operational efficiencies to engage new customers and add value to existing customers. At what point is the line in a sports arena too long to wait in – opportunity cost is all derived from yield management understanding.
(3) Operational Assistance Within a leisure facility, automation is king. Investing in systems and processes generates a higher return than investing in people. The correct systems, create a turnkey unit not dependent on specific management but instead on set guides and procedures and implemented through quick and cost-effective training. At points, certain tweaks in the concept or business model may be evaluated for change or CapEx for quicker service, all based around the ROI expected. The real money is in repetition and executing this mantra is a key to success.
Bringing in a team that understands how to tie all the components of successful leisure consulting provides expertise and experience which in turn leads to smarter decisions.
