< PrevNext > Hotel Revenue Management to Pinpoint the Value of Corporate Travel By Julie Sickel / February 16, 2016 / Contact Reporter Share Julie Sickel, Hotel Editor, BTN Picture two companies: Company A and Company B. Both companies are submitting a request for proposal for a negotiated rate at Hotel X. The companies are of a similar size and they both delivered 500 room nights to Hotel X last year. By the old standards of doing business, both companies are equally valuable to Hotel X and will receive a similar negotiated rate. In 2016, however, Company A is going to be charged much more than Company B. The culprit behind the rate difference: revenue management.Long considered more art than science, revenue management in the hotel industry grew vastly more sophisticated in recent years, and now revenue management companies are figuring out how to deploy business intelligence. That means that when Company A and Company B come to the negotiating table, Hotel X can now see that those 500 room nights provided by Company A were only booked on sold-out nights at the hotel, when other hotels in the city were also at capacity. Company B is looking much more valuable.The Rainmaker Group is one revenue management player looking to mobilize business intelligence for its hotel clients. Last year, it bought SolidusIQ, a business intelligence platform that culls existing data within a hotel’s management systems to understand guest and corporate client behavior. But, why stop there? Rainmaker is utilizing different BI tech to analyze group business, as well.“In terms of making the decision, ‘Should I take this group, and if I do, what should I charge?’” said Rainmaker executive vice president Dom Beveridge, “that’s an area that we’ve been working on with a number of clients for a few years now, and given the perfect storm of commercial pressure, we see it being huge in 2016." [Revenue manager] is probably the No. 1 position that we’re doing searches for in the next 12 to 18 months, more than any other position.”Aethos Consulting Group CEO Keith Kefgen Group BI tools will be able to project what guest business would be displaced by accepting a group contract and then use win-loss probability to anticipate how much the hotel could charge that group without losing the bid.Last year was already big for hotel revenue management. Keith Kefgen, managing director and CEO of Aethos Consulting Group, which conducts executive searches within the hospitality industry, told BTN in June that, “[Revenue manager] is probably the No. 1 position that we’re doing searches for in the next 12 to 18 months, more than any other position.” Patrick Bosworth, co-founder and CEO of Duetto, a household name in hotel revenue management, said the company grew by more than 400 percent last year, and it expects to more than double in size again this year.With tripBAM and Yapta on one side of the fence delivering insight into hotelier behavior for corporates and revenue management players on the other side giving hotel feedback on corporate behavior, look for the intelligence arms race to heat up big time in 2016.