In Viceroy’s case iDeaS is the revenue management solution of choice and to date it has installed HotelIQ, a business intelligence tool, in around a third of its hotels. Of course, those tools incur a cost, and it’s sometimes hard to get hotel owners to buy in, but the results speak for themselves. Getting the average daily rate (ADR) right is the holy grail and today this involves, among other things, putting in place smarter pricing strategies, smarter availability restrictions and smarter inventory controls in yielding different categories of rooms, as opposed to always leaving the base category open. Importantly it is about drawing both historical and future data into the mix. Unlike in the past, big data that is properly processed and applied means revenue managers no longer need to act on gut instinct. “We don’t always get it right but you’ve got to be prepared to be wrong,” says Pusillo, adding that, “in making decisions and in taking risks you have a foundation on which to draw from in the future.” So what core metrics is Viceroy focusing on today? - RevPAR (revenue per available room): Top line performance is, of course, important but, as Pusillo points out, it only takes into account net operating income (NOI) at a base level. - GOPPAR (gross operating profit per available room). It is this that sets hotel groups apart from other companies, he argues, and is a stronger measure of efficiency in terms of how the business is containing costs and what the customer acquisition costs are. - TRevPAR: (Total revenue per available room). For so long everybody has looked at room revenue and given very little credibility to additional revenue brought in by guests but that is becoming increasingly important. Get the full story at EyeForTravel