Hotel ZaZa - Micros

Page 4
“Using the ORMS fore‐
casting tool provides us
the ability to push out pro‐
motions and specials at
the right time.”
‐John Martin,
Revenue Manager, Hotel
ZaZa
The Result
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 un‐
objective 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