micros

Case Study

AT aGlance
COMPANY:

HotelZaZaOptimizesRevenueandProts withOPERARevenueManagementSystem(ORMS) MaximizingHotelZaZasbottomlinewithbusiness intelligencetoolstoensureoptimalpricing,RevPar, andoccupancy

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 luxurywithavarietyofthemedanduniqueroomtypesthatarebothfunkyandfun. Its prime locations and unique personality have made it one of Preferred Hotel Groupstopdestinationsandaleaderintheregionsvestarhotelmarket. Hotel ZaZas Dallas location, a hotspot in a fashionable Uptown neighborhood, oers 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, worldrenowned Texas Medical Center and thriving downtown central businessdistrict,isanunexpectedfeastforthesenses. AsapropertyofPreferredHotels&Resorts,HotelZazaispartofacollectionof185 luxury hotels and resorts located in some of the most desirable locations around the world. All Preferred Hotels & Resorts properties embrace an awardwinning 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 Benet Program, featuring benets such as early checkin/ late checkout, spaceavailable upgrades and more.

HotelZaZa www.hotelzaza.com
INDUSTRY: HotelandResort THECHALLENGE: HotelZaZasoughttondan automatedrevenuemanagement systemthatwouldcomplementits currentrevenuegoalsand managementstrategy.Italso wantedasystemthatintegrated withitscurrenttechnology infrastructure. SOLUTION: TheOPERARevenueManagement System(ORMS)providedunique capabilitiesandoeredmultiple hospitalityrevenuemanagement tools,helpingHotelZaZato strategicallyoptimizeyield. THEBENEFITS: Betterrevenueoptimization andmodelingtoassistall departmentsofthehotel Increasedrevenuesand decreasedineciencies Innovativeforecastingand pricingmodules Anintegrated databaseofHotel ZaZassystems providesamulti siteviewof revenuecenters

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TheChallenge

Wehadaverygoodrela tionshipwithMICROS fromthebeginning,when wechoseOPERAPMSas ourpropertymanagement solution.Whenwebegan lookingforanautomated revenuemanagement tool,MICROSgaveusan indepthlookintothe ORMSplatform,model ingandprovidingademo ofitscapabilities.We werecondentwemade therightchoice.
JohnMartin, RevenueManager,Hotel ZaZa

Thehotelindustryis highlycompetitiveandan automatedrevenueman agementtooliskeyin stayingaheadofthe curveinthehoteland resortspace.Weare thrilledtohaveHotelZa ZautilizeOPERAReve nueManagementinaddi tiontoitsexistingMI CROStechnologyinfra structure.
KelleBallou, SalesExecutive,MICROSSys tems,Inc.

Hotel ZaZa set out to nd an automated revenue management system (RMS) that would complement its current revenue goals and management strategy. We didnt want to drop from the leading pack in terms of revenue performance. We are always looking to nd something to stay on top of our competitive set ortakeustothenextlevel.Havinganautomated revenue system that assists you in yield is the perfect accessory, said John Martin, Revenue Manger,HotelZaZa. John Martin has been working in the luxury hotel industry for over 26 years, specically 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 specic 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 systemthatbetterguidesusintherightdirectiontoachieveoptimalyield. 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 systemincludedbutwerenotlimitedto: Demandforecastingbasedonhistoricaldataandcurrentmarketperformance Aggregateddatafrommultiplepropertiesandrevenuecenters Integratedhotelsystemsforacomprehensiveandaccurateviewofoperational statistics Competitor'spricingandrealtimedatabasedonoccupancyandmarketrates Optimalyieldandpricinganalyticsforeachroomtypeandbookingwindow Accurately extracting data regarding past demand, actual performance and future demand from the hotels 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 extractprocess.Itwascriticalthatthesystemsworkedwelltogether. Mr. Martin elaborated on this point, Since our two properties are structured very dierently 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 eort in how we developoptimalrevenue.

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TheSolution
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 lookintotheORMS platform,modelingandprovidingademoofitscapabilities.Wewere condentthatthiswasthebestsolutionforHotelZaZa,expressedMr.Martin. ORMS provided unique capabilities and oered 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 righttimeandfortherightprice. ORMS was designed specically 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 eective revenue management tools availableintodaysmarket.ORMSeliminatesthedatacollectionandcongurationphases typically required when deploying other hotel revenue management systems. Since Hotel ZaZas OPERA PMS already contains all the data, necessary key components of ORMS wereeasilysetupandrunninginjustoneday. The installer was terric 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 ow and that it incorporated both properties seamlessly,explainedMr.MartinabouttheinstillationofORMS. ThetoolsandfeaturesthatORMSprovidesincludes: Customized alerts facility that allow the revenue management team to keep constant trackofforecastrisks,eliminatingmanualtracking Customized evaluation of groups with dierent optimizing patterns are used based on thebehaviorofthegroup Automated optimization based on event and seasonal impact is derived through real historicaldata Distinct forecast models are used, for each optimization the most suitable model is automaticallyselected Analyzing demand and optimizing revenue based on ORMSs intuitive results is critical for Hotel ZaZa. We are not a large scale hotel company, and we didnt want to completely relinquishourrevenueobjectivestoanautomatedsystem.Wewantedtostillkeephuman objective thinking in our revenue strategy. With ORMS we review current levels of booking and forecasts, look at specic business opportunities, restrictions and rates by market segment, and any exceptional circumstances inuencing previous forecasts. Then its 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 understandthesystembeforeyoucanstartmanipulatingtheseresults,saidMr.Martin.
Whenthereisagoodmar riagebetweentwodierent businesses,bothbenet fromtalkingaboutit, ExpressedJohnMartin, RevenueManagerHotel ZaZaaboutwhyhewas excitedtohaveHotelZaZa featuredinaMICROSCase StudyaboutORMS.

Theinstallerwasterric andveryknowledgeable makingitveryeasytolearn howtosetupanduseORMS. Heensuredtheinitialprocess ofputtingitalltogether wentsmoothlywithoutany disruptionstooperational owandthatitincorporated bothpropertiesseamlessly.
JohnMartin, RevenueManager,HotelZaZa

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TheResult

UsingtheORMSfore castingtoolprovidesus theabilitytopushoutpro motionsandspecialsat therighttime. JohnMartin, RevenueManager,Hotel ZaZa

Thegoalofanyrevenuemanagementsystemistomaximizehotelrevenueandprots byensuringoptimalpriceofaroom.Eachindividualpropertyhasuniquerequirements and expectations as to what type of business intelligence will provide its optimal RevPar. ORMS seamlessly integrates into Hotel ZaZas technology infrastructure and provided positive results, from the get go. ORMS makes decisions which can be modiedandinterpreted.Weconsistentlyreviewthedataandanalyticsitproduces.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 dierences then we try to better understand why there are dierences, and what we could do to provide a better outcome for revenue. ORMS consistently makes us reevaluateourrevenuestrategytogetittowhereitoptimallyneedstobe,everytime. ORMS gives us an update every 12 hours , and its exciting because it forces us to reevaluateourobjectiveeveryday,observedMr.Martin. SincewestartedutilizingORMSwehaveseenanincreaseinrevenue whichwecantattributetoanyanomalies.Everytimeyoubringanew tool to revenue management it makesyou 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 scientic manner and gives you a tool to develop your own revenue strategy. It is intuitive as it suggests optimal decisions, which can be interpreted andmodiedtobestalignwithourhumanperspectiveon operations,declaredMr.Martin. IthasbeenabigyearforHotelZaZa.Weneverhadsomanyspecials before and we needed them. The comp set varies on average between $25$50.The competition in this market is cutthroat which inreturnkeepsacertainlevelofbalanceinourcompetitiveset.There arenothugerategapsinthemarket,saidMr.Martin. Hotel ZaZa dierentiated itself from the competition not by dramatically lowering rooms prices, but instead by increasing reservationswithvalueaddedpackagesandspecials.Theseprovided foodandbeverages incentives,giftcerticates, and even oerspecial 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 ll to meet optimal revenue. Based on the data presented by ORMS, we can better adjust our strategy by adding targeted promotions,statedMr.Martin. Not only did ORMS elevate Hotel ZaZas revenue management strategy, but it also provedtobeapositiveinvestment.ORMSyieldingstrategieskeepyouonyourtoes, so you can reach the best decisions. If you have all possible information at you nger 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

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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,saidMr.Martin. ORMS improved Hotel ZaZas 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 aect our revenue, so that employees can understand how it aects Hotel ZaZa as whole. This creates a positive ripple eect in to dierent departmentsofthehotel,statedMr.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, concludedMr.Martin

Tosumitup,ORMSis likeourteacher,whois behindus,alwayswatch ingus,givingusthe knowledgeweneedto headintherightpath.

JohnMartin, RevenueManagerofHotelZaZa

ORMSDashboard

ForecastAnalysisScreen

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2012 MICROS Systems, Inc. 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 MICROS Systems, Inc. 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. 01/2012 -9.0.0.31.00