Despite reports of a weakening global growth rate through 2020,1 research from IBISWorld shows that the hotels and motels industry has outperformed the broader economy for the past five years, and total industry revenue so far this year has reached $206 billion.
A hotel that is constantly jam-packed with guests is not automatically a profitable one. The goal of a successful hotel is not necessarily to achieve 100 percent occupancy, but rather to optimize revenue.
I recently read a piece about an international resort company that introduced a Revenue Management System (RMS) within the last five years. Like many resort properties around the world, their hotels have a high degree of dependence on contracted tour business and other leisure-oriented distribution channels.
"All our knowledge has its origin in our perceptions." ~ Leonardo da Vinci
Once upon a time, group business was essentially a filler for the guest rooms that transient business didn't occupy. In today's world of all-time occupancy highs,1 group business tells a different tale.