micros AT a Glance Case Study Hotel ZaZa Optimizes Revenue and Profits with OPERA Revenue Management System (ORMS)
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1 micros Case Study AT a Glance COMPANY: Hotel ZaZa INDUSTRY: Hotel and Resort THE CHALLENGE: Hotel ZaZa sought to find an automated revenue management system that would complement its current revenue goals and management strategy. It also wanted a system that integrated with its current technology infrastructure. SOLUTION: The OPERA Revenue Management System (ORMS) provided unique capabilities and offered multiple hospitality revenue management tools, helping Hotel ZaZa to strategically optimize yield. THE BENEFITS: Better revenue optimization and modeling to assist all departments of the hotel Increased revenues and decreased inefficiencies Innovative forecasting and pricing modules An integrated database of Hotel ZaZa s systems provides a multisite view of revenue centers Hotel ZaZa Optimizes Revenue and Profits with OPERA Revenue Management System (ORMS) Maximizing Hotel ZaZa s bottom line with business intelligence tools to ensure optimal pricing, RevPar, and occupancy Hotel ZaZa, part of the Preferred Hotel Group collection, boasts two popular locations in both Dallas and Houston, Texas. Hotel ZaZa takes a modern twist on luxury with a variety of themed and unique room types that are both funky and fun. Its prime locations and unique personality have made it one of Preferred Hotel Group s top destinations and a leader in the regions five star hotel market. Hotel ZaZa s Dallas location, a hotspot in a fashionable Uptown neighborhood, offers business and leisure travelers an inspiring hotel experience with extensive perks. Its second location in Houston, situated in the heart of a vibrant Museum District, world renowned Texas Medical Center and thriving downtown central business district, is an unexpected feast for the senses. As a property of Preferred Hotels & Resorts, Hotel Zaza is part of a collection of 185 luxury hotels and resorts located in some of the most desirable locations around the world. All Preferred Hotels & Resorts properties embrace an award winning Standards of Excellence, an extensive quality assurance program that has been honored with the Best Practices Champion Award by Cornell University. Additionally, Preferred Hotels & Resorts feature a loyalty program to guests, Prefer Guest Benefit Program, featuring benefits such as early check in/ late check out, space available upgrades and more.
2 Page 2 We had a very good relationship with MICROS from the beginning, when we chose OPERA PMS as our property management solution. When we began looking for an automated revenue management tool, MICROS gave us an in depth look into the ORMS platform, modeling and providing a demo of its capabilities. We were confident we made the right choice. Revenue Manager, Hotel ZaZa The hotel industry is highly competitive and an automated revenue management tool is key in staying ahead of the curve in the hotel and resort space. We are thrilled to have Hotel Za Za utilize OPERA Revenue Management in addition to its existing MI CROS technology infrastructure. Kelle Ballou, Sales Executive, MICROS Systems, Inc. The Challenge Hotel ZaZa set out to find an automated revenue management system (RMS) that would complement its current revenue goals and management strategy. We didn t want to drop from the leading pack in terms of revenue performance. We are always looking to find something to stay on top of our competitive set or take us to the next level. Having an automated revenue system that assists you in yield is the perfect accessory, said John Martin, Revenue Manger, Hotel ZaZa. John Martin has been working in the luxury hotel industry for over 26 years, specifically in the Dallas and Houston region. Mr. Martin has experience with managing revenue of luxury hotel businesses and knew exactly what Hotel ZaZa required in terms of an automated revenue management system. There is a lot of product junk out there claiming to account for specific variables, but in reality delivering something far from accurate. We required a system that could provide accurate business intelligence and yield maximization. Not necessarily something that does the work for us, rather a system that better guides us in the right direction to achieve optimal yield. Finding an intelligent revenue management tool that is reliable was a challenge faced by Hotel ZaZa, and businesses alike. The revenue system needed to not only provide business analytics based on aggregated data but, it also required an accurate systematical process. Functional requirements for an automated revenue management system included but were not limited to: Demand forecasting based on historical data and current market performance Aggregated data from multiple properties and revenue centers Integrated hotel systems for a comprehensive and accurate view of operational statistics Competitor's pricing and real time data based on occupancy and market rates Optimal yield and pricing analytics for each room type and booking window Accurately extracting data regarding past demand, actual performance and future demand from the hotel s property management systems (PMS) or central reservation system (CRS) is often the most complex aspect of an RMS implementation. A key aspect in selecting an RMS for Hotel ZaZa was the reliability and stability of the data extract process. It was critical that the systems worked well together. Mr. Martin elaborated on this point, Since our two properties are structured very differently in terms of yield, room sizes available, and property size we required a RMS system that accurately incorporated the individual variables of each property. We needed a system that guides us, but also lets us maintain a hands on effort in how we develop optimal revenue.
3 Page 3 The Solution The OPERA Revenue Management System (ORMS) turned out be the ideal solution for Hotel ZaZa, providing its management team with the tools and information needed to enhance business. We had a very good experience with MICROS solutions from the beginning, when we chose OPERA PMS as our property management solution. When we began looking for an automated revenue management tool, MICROS gave us an in depth look into the ORMS platform, modeling and providing a demo of its capabilities. We were confident that this was the best solution for Hotel ZaZa, expressed Mr. Martin. ORMS provided unique capabilities and offered multiple hospitality revenue management tools guiding Hotel ZaZa to better yield management. In the dynamic and competitive world of hotel reservations marketing, Hotel ZaZa desired to extend its revenue strategy with an innovative revenue tool, giving it the ability to sell to the right customer at the right time and for the right price. When there is a good marriage between two different businesses, both benefit from talking about it, Expressed John Martin, Revenue Manager Hotel ZaZa about why he was excited to have Hotel ZaZa featured in a MICROS Case Study about ORMS. ORMS was designed specifically as an embedded component of the OPERA Property Management System and the OPERA Reservation System. This seamless solution provides Hotel ZaZa with the most accurate and effective revenue management tools available in today s market. ORMS eliminates the data collection and configuration phases typically required when deploying other hotel revenue management systems. Since Hotel ZaZa s OPERA PMS already contains all the data, necessary key components of ORMS were easily set up and running in just one day. The installer was terrific and very knowledgeable making it very easy to learn how to set up and use ORMS. He ensured the initial process of putting it all together went smoothly without any disruptions to operational flow and that it incorporated both properties seamlessly, explained Mr. Martin about the instillation of ORMS. The tools and features that ORMS provides includes: Customized alerts facility that allow the revenue management team to keep constant track of forecast risks, eliminating manual tracking Customized evaluation of groups with different optimizing patterns are used based on the behavior of the group Automated optimization based on event and seasonal impact is derived through real historical data Distinct forecast models are used, for each optimization the most suitable model is automatically selected Analyzing demand and optimizing revenue based on ORMS s intuitive results is critical for Hotel ZaZa. We are not a large scale hotel company, and we didn t want to completely relinquish our revenue objectives to an automated system. We wanted to still keep human objective thinking in our revenue strategy. With ORMS we review current levels of booking and forecasts, look at specific business opportunities, restrictions and rates by market segment, and any exceptional circumstances influencing previous forecasts. Then it s back to the system to input the various adjustments and intuitively set pricing. All of your main channels now look at the same availability and restrictions, but you do have to understand the system before you can start manipulating these results, said Mr. Martin. The installer was terrific and very knowledgeable making it very easy to learn how to set up and use ORMS. He ensured the initial process of putting it all together went smoothly without any disruptions to operational flow and that it incorporated both properties seamlessly. Revenue Manager, Hotel ZaZa
4 Page 4 The Result Using the ORMS forecasting tool provides us the ability to push out promotions and specials at the right time. Revenue Manager, Hotel ZaZa The goal of any revenue management system is to maximize hotel revenue and profits by ensuring optimal price of a room. Each individual property has unique requirements and expectations as to what type of business intelligence will provide its optimal RevPar. ORMS seamlessly integrates into Hotel ZaZa s technology infrastructure and provided positive results, from the get go. ORMS makes decisions which can be modified and interpreted. We consistently review the data and analytics it produces. If ORMS matches what we objectively projected for revenue, we analyze how and why it aligned. When they are in sync we feel a higher level of reassurance that we are doing something right. If for example, our objectives do not align and there are differences then we try to better understand why there are differences, and what we could do to provide a better outcome for revenue. ORMS consistently makes us reevaluate our revenue strategy to get it to where it optimally needs to be, every time. ORMS gives us an update every 12 hours, and its exciting because it forces us to reevaluate our objective every day, observed Mr. Martin. Since we started utilizing ORMS we have seen an increase in revenue which we can t attribute to any anomalies. Every time you bring a new tool to revenue management it makes you take deeper look into your daily development of revenue and it forces you to look at what you are doing right, wrong, and what you can do better. It is an unobjective third party. ORMS takes data and processes it in a scientific manner and gives you a tool to develop your own revenue strategy. It is intuitive as it suggests optimal decisions, which can be interpreted and modified to best align with our human perspective on operations, declared Mr. Martin. It has been a big year for Hotel ZaZa. We never had so many specials before and we needed them. The comp set varies on average between $25 $50.The competition in this market is cut throat which in return keeps a certain level of balance in our competitive set. There are not huge rate gaps in the market, said Mr. Martin. Hotel ZaZa differentiated itself from the competition not by dramatically lowering rooms prices, but instead by increasing reservations with value added packages and specials. These provided food and beverages incentives, gift certificates, and even offer special room and upgrade rates. With ORMS we can use the forecasting analytics to put together value added specials. For instance, we can see that we have a window of 30 rooms per night for 21 days that we need to fill to meet optimal revenue. Based on the data presented by ORMS, we can better adjust our strategy by adding targeted promotions, stated Mr. Martin. Not only did ORMS elevate Hotel ZaZa s revenue management strategy, but it also proved to be a positive investment. ORMS yielding strategies keep you on your toes, so you can reach the best decisions. If you have all possible information at you finger tips you know how to distribute the best price at the right time. For instance this month our Houston location is nearing a record breaking month for March 2012, a month after we launched ORMS. Now there is no anomaly, no event like the super bowl or NASCAR or anything special. It has just been a popular month that
5 Page 5 comparatively earned revenues close to that of busy seasonal months and months with huge events drawing people into the city. As a result, we added approximately $200,000 on top of our projected revenue at our Houston location and also saw an increase of approximately $100,000 in revenue compared to prior years result at our Dallas location. ORMS was a part of the success, said Mr. Martin. ORMS improved Hotel ZaZa s operations from the top level, down. Since utilizing ORMS, we decided to add a morning meeting in addition to our big weekly revenue meeting, so that we can take a quick look in to what ORMS has put together for the day. We take the time to scan and discuss prior days results, thus educating our whole team on revenue. We highlight how certain events or improper operations affect our revenue, so that employees can understand how it affects Hotel ZaZa as whole. This creates a positive ripple effect in to different departments of the hotel, stated Mr. Martin. A company would limit itself by not utilizing every available yielding tool for its advantage. ORMS adds value, and provides every tool that you need to stay with and ahead of the competition. To sum it up, ORMS is like our teacher, who is behind us, always watching us, giving us the knowledge that we need to head in the right path, concluded Mr. Martin ORMS Dashboard To sum it up, ORMS is like our teacher, who is behind us, always watching us, giving us the knowledge we need to head in the right path. Revenue Manager of Hotel ZaZa Forecast Analysis Screen
6 micros 7031 Columbia Gateway Drive Columbia, MD USA Phone: +(1) (443) (1) (443) (Automated) Fax: +(1) (443) EAME Regional Office Europadamm 2 6 Neuss, 41460, Germany Phone: +(49) (2131) Fax: + (49) (2131) Asia Pacific Regional Office Suite 7, 1st Floor 13 Narabang Way Belrose NSW 2085 Australia Phone: +(61) (2) Fax: +(61) (2) Latin America & Caribbean Regional Office Avda. Carlos Pellegrini 1023 Piso 6 C1009ABU Buenos Aires, Argentina Phone: +(54) (11) Fax: +(54) (11) Find out more about what MICROS can do for you For more information contact us at info@micros.com Phone: (US and Canada) About MICROS Serving the hospitality and specialty retail industries, we are the world s leading developer of enterprise applications. Our global presence and local support have helped us build a long list of references hotels, restaurants, conference centers, retail, stadiums, theme parks, casinos and cruise ships. We maintain an intense dialogue with colleagues throughout these industries. The result is a wide range of integrated software, hardware and business technology solutions and services. These help to optimize your operation and increase profits by providing your guests with a personalized service. Connect with us!! MICROSblog ( All rights reserved. No part of this publication may be reproduced, photocopied, stored in a retrieval system, or transmitted without the express prior written consent of the publisher. MICROS is a registered trademark of Certain product and company names appearing here may be trademarks or service marks owned and/or registered by third parties. All other product and brand names are the property of their respective owners. 01/
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