By: Daniel Brunod Airline Industry Advisor The Impact of NDC on Revenue Management: Opportunities, Challenges, and Real-World Successes The New Distribution Capability (NDC) has rapidly transformed the aviation industry, revolutionizing how airlines handle revenue management and customer engagement. Developed by the International Air Transport Association (IATA), NDC offers a modern, XML-based data transmission standard. This enables airlines to distribute rich content and personalized offers directly to travel agents and customers, bypassing the limitations of legacy Global Distribution Systems (GDS). By empowering airlines with more sophisticated and dynamic retailing capabilities, NDC presents unprecedented opportunities to optimize revenue management strategies, drive ancillary sales, and enhance customer satisfaction. This article delves into the profound impact of NDC on revenue management, showcasing real-world examples of how airlines have successfully used this technology to bolster their bottom line. Transforming Revenue Management Strategies with NDC NDC empowers airlines to have more flexibility and control over their pricing strategies, going beyond traditional fare classes and inventory controls. This transition allows airlines to effectively align supply and demand, optimize load factors, and maximize revenue per available seat mile (RASM) by implementing dynamic and personalized pricing models. One of the key revenue management strategies that NDC facilitates is continuous pricing—a model that moves away from the rigid, bucketed pricing structure of traditional revenue management systems. Continuous Pricing and Dynamic Offers: With continuous pricing, airlines are no longer confined to a set number of fare classes. Instead, they can offer virtually unlimited price points that reflect real-time market conditions and individual customer willingness to pay. This flexibility allows airlines to capture additional revenue that might otherwise be lost because of fare undercuts or overpricing. For example, Lufthansa Group has successfully implemented continuous pricing enabled by NDC across its network. By utilizing machine learning algorithms and real-time data analysis, Lufthansa can adjust fares dynamically in response to demand fluctuations, competitive pricing, and booking behaviors. By offering more transparent and fair pricing, this approach has not only improved yield management but also enhanced the overall customer experience. Personalized Ancillary Sales: Another significant opportunity presented by NDC lies in the optimization of ancillary revenue. Traditionally, airlines sold ancillary products separately or at a static price, such as seat upgrades, baggage fees, inflight meals, and Wi-Fi access. With NDC, airlines can dynamically bundle and price these products in real-time, creating personalized offers tailored to individual customer preferences and purchase history. American Airlines, for instance, has leveraged NDC to enhance its ancillary sales strategy by offering personalized bundles that combine airfare with additional services such as extra legroom, priority boarding, and inflight entertainment. By catering to the specific needs of different customer segments, from business travelers seeking comfort and convenience to leisure travelers looking for value, this tailored approach has effectively increased ancillary sales. Real-Time Revenue Optimization: NDC also allows airlines to implement more sophisticated revenue optimization strategies by providing access to richer and more granular data. This capability enables airlines to analyze booking patterns, monitor competitor pricing, and assess market demand in real-time, allowing them to make more informed pricing and inventory decisions. British Airways have been at the forefront of utilizing NDC for real-time revenue optimization. By integrating the NDC with its revenue management system, British Airways can dynamically adjust prices and availability across multiple sales channels, optimizing revenue while ensuring competitive positioning in the marketplace. To gain a better understanding of its impacts, I have constructed a table that compares traditional revenue management with NDC. Aspect Revenue Management without NDC (Traditional GDS-Based Distribution) Revenue Management with NDC (New Distribution Capability) Pricing Strategy Relies on static fare classes with limited pricing flexibility. Enables dynamic pricing with virtually unlimited fare points and flexibility. Data Utilization Limited data on customer behavior and preferences because of lack of direct data access. Enhanced data access allows for detailed customer segmentation and personalized offers. Offer Creation Standardized offers with limited customization capabilities. Rich content and personalized offers tailored to individual customers’ preferences and behaviors. Ancillary Revenue Ancillary sales are static and not dynamically bundled or priced. Ancillary products can be dynamically bundled and priced in real-time, increasing upselling and cross-selling opportunities. Distribution Costs Higher costs because of reliance on GDSs, which charge booking fees. Lower distribution costs through direct connections, reducing reliance on GDSs and associated fees. Market Reach and Customer Engagement Restricted capacity for direct customer engagement, as offers are primarily distributed through GDSs and third-party channels. Direct distribution allows for better customer engagement and tailored communication, leading to higher conversion rates. Revenue Optimization Restricted to traditional inventory and fare class management - less responsive to real-time market changes. Advanced revenue optimization through real-time data analysis and machine learning, allowing for rapid adjustments to market conditions. Real-Time Adjustments Slow to adapt to market changes because of reliance on batch updates and static pricing models. Enables real-time pricing and inventory adjustments based on current demand and competitive landscape. Personalization Limited personalization capabilities offers are generic and not tailored to individual customers. High level of personalization is possible, including individualized pricing, offers, and bundled products. Distribution Flexibility Limited flexibility; heavily dependent on GDS infrastructure and rules. High flexibility in distribution - airlines can choose distribution partners and methods, and create exclusive offers. Customer Experience More rigid, with less ability to provide tailored experiences; often results in a “one-size-fits-all” approach. Improved customer experience through more tailored and relevant offers, resulting in increased satisfaction and loyalty. Data Security and Privacy Data often managed by multiple third parties (GDSs, OTAs), leading to potential privacy concerns. Better control over data security and privacy as data flows directly between the airline and the customer or travel agent. Implementation Complexity Lower initial complexity but constrained by older legacy systems with limited functionality. Higher initial implementation complexity is due to integration with existing systems, but offers more modern capabilities and long-term benefits. Real-World Cases of NDC Driving Revenue Growth Several airlines have already experienced tangible benefits from implementing NDC, demonstrating its potential to drive revenue growth and enhance competitiveness. Lufthansa Group: Lufthansa was indeed one of the early adopters of NDC and has reported improvements in revenue as a result of implementing the technology. By launching the “NDC Partner Program,” Lufthansa has motivated travel agents to use its direct NDC channels, offering them exclusive content and dynamic pricing options not available on traditional GDSs. Lufthansa has publicly stated that they have seen a notable increase in conversion rates and higher revenue per ticket from NDC channels compared to GDS channels, as well as a reduction in distribution costs. British Airways: British Airways, along with Iberia, was part of the International Airlines Group (IAG) that adopted NDC early. British Airways has used NDC to offer richer content and more personalized offers directly to consumers and travel agents. They have reported improved revenue performance because of more targeted offers and better control over distribution costs. For example, British Airways has offered special fare bundles and ancillary products directly through their NDC-enabled platforms, resulting in increased sales of high-margin products like premium seats and extra baggage. American Airlines : American Airlines has been a prominent advocate of NDC and has developed its own NDC-compliant distribution platform. They have publicly shared that NDC has allowed them to increase their ancillary revenue by enabling more personalized offers and dynamic pricing capabilities. American Airlines has also benefited from reduced dependency on traditional GDSs, lowering distribution fees and improving profit margins. Qantas Airways: Qantas has integrated NDC to enhance its distribution strategy and provide richer, more tailored content directly to travel agents and customers. By offering exclusive NDC content that is not available through traditional GDSs, Qantas has reported increased direct bookings and a reduction in distribution costs, which has helped improve overall revenue. Emirates: Emirates has adopted NDC to enhance its distribution capabilities and optimize its revenue management strategies. By offering rich content and personalized offers through its NDC-enabled platform, Emirates has driven higher conversion rates and increase average ticket values. Emirates has also leveraged NDC to improve its ancillary sales strategy, offering dynamically priced add-ons such as extra baggage, seat selection, and inflight meals. This personalized approach has resulted in a significant increase in ancillary revenue, contributing to Emirates’ overall revenue growth. Strategies for Maximizing Revenue with NDC In order to fully capitalize on the revenue opportunities offered by NDC, airlines need to embrace a comprehensive revenue management approach that makes use of advanced data analytics, machine learning, and dynamic pricing algorithms. Here are a few key strategies that airlines can implement to maximize revenue with NDC: Data-Driven Decision Making: The rich data provided by NDC enables airlines to make more informed decisions regarding pricing, inventory management, and customer segmentation. By integrating NDC data with their revenue management systems, airlines can gain a deeper understanding of market demand and customer behavior, allowing them to optimize pricing strategies and maximize revenue. Implement Dynamic Bundling and Cross-Selling: NDC allows airlines to offer dynamic bundles that combine airfare with ancillary products and services, such as seat upgrades, baggage fees, and inflight meals. By offering personalized bundles based on customer preferences and purchase history, airlines can increase ancillary revenue and enhance the overall customer experience. Leverage Machine Learning for Predictive Analytics: Machine learning algorithms can analyze vast amounts of data to identify patterns and trends in customer behavior, allowing airlines to predict demand more accurately and adjust pricing strategies in real-time. By leveraging predictive analytics, airlines can optimize revenue management decisions and stay ahead of the competition. Enhance Customer Engagement and Loyalty: NDC provides airlines with the tools to offer more personalized and engaging experiences to their customers. By providing tailored offers and dynamic pricing based on individual preferences, airlines can increase customer satisfaction and loyalty, leading to higher repeat business and long-term revenue growth. Optimize Distribution Channels: With NDC, airlines have the flexibility to optimize their distribution channels and reduce reliance on GDS. By offering exclusive content and personalized offers through direct channels, such as their websites and mobile apps, airlines can lower distribution costs and increase revenue margins. Challenges and Future Trends in NDC-Driven Revenue Management While the NDC offers substantial opportunities for airlines to refine their revenue management strategies, its adoption comes with several complex challenges. One of the major obstacles is the technical difficulty of integrating NDC with existing revenue management systems. Many airlines continue to operate on legacy platforms that are not designed to support the modern, flexible architecture of NDC. This incompatibility often causes significant investments in new technology, infrastructure upgrades, and extensive system overhauls, which can be both time-consuming and costly. Beyond the technical aspects, implementing NDC also requires a fundamental shift in organizational culture. Revenue management teams must learn to adapt to new tools, processes, and methodologies that NDC introduces. This transition isn’t just about adopting new software, but also about embracing new mindsets and approaches to revenue optimization. Effective change management is essential to align all stakeholders—from IT departments to marketing and sales teams—ensuring they are fully prepared and committed to the transition. Fostering a culture that is open to continuous learning and innovation will be key to maximizing the benefits of NDC. Another critical challenge lies in addressing data privacy and security concerns. With the increased use of customer data to enable more personalized and dynamic pricing models, airlines must navigate complex regulatory environments, such as GDPR in Europe and other global privacy laws. Ensuring the security of sensitive customer information while maintaining transparency and building trust is a delicate balance that airlines must achieve to prevent reputational damage and regulatory penalties. Looking ahead, the future of revenue management in the NDC era is likely to be characterized by the deeper integration of advanced technologies, including artificial intelligence (AI), machine learning (ML), and blockchain. These technologies will not only enhance pricing strategies and revenue optimization, but also transform the way airlines interact with customers. AI and ML can provide more precise demand forecasting, allowing airlines to expect market trends and adjust their pricing in real time. Blockchain could streamline payment processes and enhance the security of transactions, further building trust with consumers. As the travel industry becomes more digital and interconnected, airlines will need to explore new ways of engaging with customers across multiple platforms and devices. This means moving beyond traditional sales channels and developing more sophisticated digital marketing and direct distribution strategies that leverage the full capabilities of the NDC. Airlines that can effectively integrate these advanced technologies into their NDC-driven strategies will deliver highly personalized experiences, optimize operational efficiency, and unlock additional revenue streams. The industry is also likely to see increased collaboration between airlines, technology providers, and third-party vendors. Such partnerships will be crucial in developing the next generation of revenue management systems that can handle the complexities of NDC, including dynamic pricing, real-time inventory management, and customer-centric marketing. Airlines that can build strong, innovative partnerships will be better positioned to adapt to changing market dynamics and stay ahead of the competition. As the aviation sector continues to develop, the airlines that are most likely to thrive will be those that not only adopt NDC, but also embrace a holistic, customer-centric approach to revenue management. This involves leveraging data analytics, developing agile strategies, and continuously innovating to meet the demands of a dynamic and increasingly competitive marketplace. By doing so, airlines can not only enhance their revenue potential but also improve customer satisfaction and loyalty, ensuring long-term success in the NDC era. The introduction of NDC represents a transformative shift in airline revenue management, offering unprecedented opportunities to optimize both ticket pricing and ancillary sales. By moving away from the static pricing models of traditional GDS-based systems, airlines can now implement dynamic pricing strategies that respond to real-time market conditions and customer behaviors. This capability not only maximizes revenue per seat but also enables more effective inventory management, ensuring that airlines can capitalize on every market opportunity and reduce the risks associated with unsold inventory. NDC’s ability to provide richer data insights allows airlines to create highly personalized offers that align with individual customer preferences and purchasing behaviors. This data-driven approach empowers airlines to identify additional revenue streams and optimize existing ones, such as through the dynamic bundling of products and services. By tailoring offers to specific customer segments, airlines can increase conversion rates and boost ancillary revenue, driving higher overall profitability. The result is a more resilient and adaptable revenue model that enhances both top-line growth and customer satisfaction.

💼 Introduction 💼 💡 Revenue Management (RM) is a critical aspect of the travel, hotel, and tourism industries, enabling businesses to maximize profitability through strategic pricing, inventory control, and demand forecasting. The concept of RM has evolved over centuries, influenced by economic, technological, and social factors. This chapter explores the history of revenue management, tracing its roots from ancient commerce to its modern application in the hospitality sector. The evolution of RM is not just a story of technological advancements but also a reflection of changing consumer behavior, market dynamics, and business strategies. 💡 🏛️ Early Beginnings of Pricing and Revenue Strategies 🏛️ 🛒 Ancient Trade Practices 🛒 📜 The foundations of revenue management can be traced back to ancient trade practices where merchants employed rudimentary pricing strategies to maximize profits. In ancient civilizations such as Mesopotamia, Egypt, and Rome, merchants adjusted prices based on supply and demand, scarcity, and customer segmentation. For example, during periods of scarcity, grain prices would soar, reflecting the basic economic principle of supply and demand. These early practices laid the groundwork for more sophisticated pricing strategies that would develop over the millennia. 📜 🏺 In ancient Greece, the concept of auctioning goods, such as slaves and commodities, was a common practice. The auction system allowed sellers to maximize revenue by selling to the highest bidder, effectively a form of early dynamic pricing. Similarly, in ancient Rome, merchants would adjust prices based on the wealth and status of the buyer, employing a rudimentary form of market segmentation. These early pricing practices highlight the long-standing human instinct to maximize revenue through strategic pricing. 🏺 🏰 Medieval Marketplaces and the Birth of Dynamic Pricing 🏰 ⚖️ During the medieval period, marketplaces in Europe became the epicenters of commerce, where more complex pricing strategies began to emerge. Vendors in these markets would adjust prices based on various factors such as the time of day, weather conditions, and the perceived wealth of the buyer. For instance, it was common for prices to be higher in the morning when demand was greater and lower in the evening when sellers were eager to offload perishable goods. This practice is an early example of dynamic pricing, where prices fluctuate based on demand and other external factors. ⚖️ 📚 In medieval times, the concept of "just price" was also prevalent, especially in the context of guilds and religious teachings. However, even within these constraints, merchants found ways to adjust prices based on market conditions. The haggling culture in bazaars and markets, where the final price was often determined by the buyer's and seller's negotiation skills, is another early form of revenue optimization. These practices demonstrate the early human understanding of the relationship between price, demand, and revenue. 📚 ✈️ The Birth of Modern Revenue Management ✈️ 🛫 The Airline Industry as a Pioneer 🛫 🛩️ The airline industry is widely recognized as the birthplace of modern revenue management. In the 1970s, American Airlines, under the leadership of Robert Crandall, introduced the first formalized revenue management system known as yield management. This system was designed to optimize the sale of airline seats by adjusting prices based on demand, booking patterns, and remaining seat inventory. The goal was to maximize revenue by selling the right seat to the right customer at the right price and time. 🛩️ 🚀 Yield management was revolutionary because it introduced the concept of variable pricing on a large scale. American Airlines system could predict demand and adjust prices dynamically, ensuring that flights were as full as possible while maximizing revenue per seat. This approach was particularly effective in managing the perishable nature of airline seats, where unsold inventory could not be recovered once a flight had departed. 🚀 💼 The success of yield management at American Airlines was dramatic, leading to a significant increase in revenue and profitability. Other airlines quickly adopted similar systems, and the principles of yield management spread across the industry. The introduction of yield management marked the beginning of modern revenue management, laying the foundation for more sophisticated systems in the future. 💼 📈 The Impact of Deregulation 📈 📉 The deregulation of the airline industry in the United States in 1978 was a critical turning point for revenue management. Deregulation led to increased competition among airlines, which in turn created a need for more sophisticated pricing strategies. Airlines could no longer rely on fixed prices and needed to develop strategies that would allow them to compete effectively in a free market. 📉 🗝️ Yield management evolved into a more comprehensive approach to revenue management, incorporating not just pricing but also inventory control, demand forecasting, and customer segmentation. Airlines began to use advanced algorithms and data analysis to predict customer behavior and adjust pricing in real time. This period also saw the introduction of overbooking strategies, where airlines would sell more tickets than available seats based on the likelihood of no-shows, further optimizing revenue. 🗝️ ✈️ The success of revenue management in the airline industry demonstrated the power of strategic pricing and inventory management, leading to its adoption in other industries. The lessons learned from airline revenue management laid the groundwork for its application in the hotel and tourism sectors, where similar challenges of perishable inventory and fluctuating demand existed. ✈️ 🏨 The Expansion of Revenue Management into the Hotel Industry 🏨 🏩 Adoption by Marriott International 🏩 🔑 Inspired by the success of revenue management in the airline industry, the hotel industry began to adopt similar practices in the 1980s. Marriott International was one of the pioneers in applying revenue management to hotel operations. The company recognized that like airline seats, hotel rooms were a perishable commodity with a fixed inventory that needed to be optimized to maximize revenue. 🔑 💼 Marriott Hotels developed sophisticated models to predict demand and optimize pricing. These models considered various factors such as historical booking patterns, local events, and competitive pricing. By adjusting room rates in real-time based on demand forecasts, Marriott Hotels was able to increase occupancy rates and average daily rates (ADR), leading to significant revenue growth. 💼 🏆 The success of Marriott's revenue management strategy was evident in its financial performance. The company reported higher revenue per available room (RevPAR) and improved profitability, which encouraged other hotel chains to adopt similar strategies. Marriott's leadership in revenue management set a new standard in the industry, demonstrating the importance of data-driven pricing strategies in maximizing hotel revenue. 🏆 🖥️ The Role of Technology in Advancing Hotel Revenue Management 🖥️ 💻 The 1990s saw significant technological advancements that further propelled the adoption of revenue management in hotels. The introduction of computerized reservation systems (CRS) and global distribution systems (GDS) allowed hotels to manage inventory and pricing dynamically across multiple channels. These technologies enabled real-time data collection and analysis, allowing hotels to adjust pricing based on current market conditions. 💻 📊 Property management systems (PMS) became increasingly sophisticated, integrating with revenue management systems to provide a comprehensive view of hotel operations. These systems allowed hotels to track key performance indicators such as RevPAR, occupancy rates, and ADR, enabling data-driven decision-making. The use of algorithms and machine learning in these systems further enhanced the ability to predict demand and optimize pricing. 📊 🌐 The integration of technology into revenue management transformed the hotel industry, allowing for more precise and responsive pricing strategies. Hotels could now segment their customers more effectively, offering personalized pricing and promotions based on individual booking behavior. This level of customization improved customer satisfaction while maximizing revenue. 🌐 🌍 Revenue Management in the Tourism Sector 🌍 🌐 The Adoption by Tour Operators 🌐 🗺️ Revenue management principles gradually extended to the broader tourism sector, including tour operators and package holiday providers. These companies began to apply RM strategies to optimize pricing for bundled services, including transportation, accommodation, and activities. By analyzing demand patterns and customer behavior, tour operators could adjust prices dynamically to maximize revenue. 🗺️ 📈 Tour operators began to use revenue management to balance the cost of securing hotel rooms and flights with the price they could charge customers. By adjusting the price of packages based on demand forecasts, tour operators were able to increase profitability while remaining competitive in the market. The use of revenue management also allowed for better allocation of resources, such as securing hotel rooms during peak periods or negotiating better rates with suppliers. 📈 🏞️ The adoption of revenue management by tour operators marked a significant shift in the tourism industry, where pricing strategies became more sophisticated and data-driven. This approach allowed tour operators to respond more effectively to market conditions, improving both profitability and customer satisfaction. 🏞️ 💻 The Impact of the Internet on Tourism Revenue Management 💻 🌐 The rise of the internet in the late 1990s and early 2000s revolutionized revenue management in the tourism sector. Online travel agencies (OTAs) and direct booking platforms allowed consumers to compare prices easily, leading to increased price sensitivity. In response, tourism companies adopted more sophisticated revenue management strategies, leveraging online data to adjust pricing in real-time and optimize revenue across multiple channels. 🌐 🔗 The internet also introduced new challenges for revenue management, such as increased price transparency and the need to manage multiple distribution channels. Tourism companies had to develop strategies to maintain price integrity across different platforms while maximizing revenue. This led to the development of channel management tools that allowed companies to manage inventory and pricing across multiple online and offline channels. 🔗 🌍 The impact of the internet on revenue management was profound, as it fundamentally changed the way prices were set and inventory was managed. The ability to collect and analyze large amounts of data in real-time allowed tourism companies to become more agile and responsive to market changes, improving their ability to maximize revenue. 🌍 📊 The Role of Data and Analytics in Modern Revenue Management 📊 📈 The Big Data Revolution 📈 💾 The advent of big data in the 21st century transformed revenue management. Hotels, airlines, and tourism companies began to collect and analyze vast amounts of data on customer behavior, market trends, and competitor pricing. This data-driven approach allowed for more accurate demand forecasting, enabling companies to optimize pricing and inventory management with unprecedented precision. 💾 🖥️ Big data allowed revenue managers to move beyond simple pricing models and develop more complex algorithms that could predict customer behavior with greater accuracy. These algorithms could analyze factors such as booking patterns, search behavior, and social media activity to predict demand and adjust pricing accordingly. The use of big data also enabled more granular segmentation, allowing companies to offer personalized pricing and promotions to different customer segments. 🖥️ 📊 The big data revolution in revenue management has led to significant improvements in profitability and efficiency. Companies can now make more informed decisions, reducing the risk of overbooking or underpricing. The ability to analyze large amounts of data in real-time has also allowed for more responsive pricing strategies, enabling companies to react quickly to market changes and maximize revenue. 📊 🤖 Machine Learning and Artificial Intelligence 🤖 🧠 The introduction of machine learning and artificial intelligence (AI) in revenue management further enhanced the ability to predict demand and optimize pricing. AI algorithms could analyze complex data sets and identify patterns that were previously undetectable. This enabled revenue managers to implement personalized pricing strategies, offering tailored prices and promotions to individual customers based on their preferences and behavior. 🧠 ⚙️ Machine learning algorithms can continuously learn and adapt to new data, improving their accuracy over time. This allows for more dynamic and responsive pricing strategies, where prices can be adjusted in real-time based on current market conditions. AI also enables more sophisticated customer segmentation, where customers can be grouped based on their behavior and preferences, allowing for more targeted marketing and pricing strategies. ⚙️ 💻 The use of AI in revenue management has led to significant improvements in both profitability and customer satisfaction. By offering personalized pricing and promotions, companies can increase customer loyalty and maximize revenue. The ability to predict demand more accurately also reduces the risk of overbooking or underpricing, leading to more efficient use of resources. 💻 🚀 Current Trends and Future Directions in Revenue Management 🚀 🤖 The Integration of AI and Machine Learning 🤖 🛠️ As technology continues to evolve, AI and machine learning are becoming increasingly integral to revenue management. These tools enable real-time analysis and decision-making, allowing companies to respond quickly to market changes and customer behavior. The future of revenue management lies in the continued integration of these technologies, with an emphasis on automation and personalization. 🛠️ ⚙️ The integration of AI and machine learning allows for more sophisticated pricing strategies, where prices can be adjusted in real-time based on a wide range of factors, including customer behavior, market conditions, and competitor pricing. These technologies also enable more personalized pricing, where customers can be offered tailored prices and promotions based on their individual preferences and behavior. ⚙️ 🌟 The continued development of AI and machine learning in revenue management is expected to lead to even greater improvements in profitability and efficiency. Companies that can effectively leverage these technologies will be better positioned to respond to market changes and maximize revenue. The use of AI and machine learning also allows for more responsive and dynamic pricing strategies, where prices can be adjusted in real-time based on current market conditions. 🌟 🌍 Sustainability and Ethical Considerations in Revenue Management 🌍 🌱 In recent years, there has been a growing emphasis on incorporating sustainability and ethical considerations into revenue management strategies. Consumers are increasingly concerned with the environmental and social impact of their travel choices, and companies are responding by adopting sustainable practices. Revenue management strategies are evolving to reflect these values, with a focus on promoting eco-friendly options and ensuring fair pricing. 🌱 🌿 Sustainability in revenue management involves balancing profitability with environmental and social responsibility. This can include offering eco-friendly options at a premium price, promoting sustainable practices, and ensuring fair pricing for all customers. Companies that can effectively incorporate sustainability into their revenue management strategies will be better positioned to attract and retain environmentally conscious customers. 🌿 🌍 The growing emphasis on sustainability and ethical considerations in revenue management is expected to continue in the coming years. Companies that can effectively balance profitability with environmental and social responsibility will be better positioned to succeed in an increasingly competitive market. The integration of sustainability into revenue management strategies will also help companies meet the growing demand for eco-friendly options, improving customer satisfaction and loyalty. 🌍 🦠 The Impact of the COVID-19 Pandemic on Revenue Management 🦠 🧪 The COVID-19 pandemic had a profound impact on the travel, hotel, and tourism industries, disrupting traditional revenue management practices. The sudden and drastic changes in demand required companies to adopt more flexible and agile RM strategies. The pandemic highlighted the importance of adaptability in revenue management, leading to the development of more resilient and customer-centric approaches. 🧪 🛡️ The pandemic forced companies to rethink their revenue management strategies, with a focus on flexibility and customer satisfaction. This included offering more flexible booking policies, adjusting pricing in real-time based on changing demand, and developing new revenue streams. The use of technology also became increasingly important, with companies leveraging AI and machine learning to predict demand and optimize pricing. 🛡️ 🌐 The impact of the COVID-19 pandemic on revenue management is expected to have long-lasting effects. Companies that can effectively adapt to the new normal will be better positioned to succeed in a post-pandemic world. The pandemic has also highlighted the importance of flexibility and customer-centricity in revenue management, with companies that can effectively balance these factors expected to achieve greater success in the coming years. 🌐 🏆 Conclusion 🏆 💡 Revenue management has evolved significantly from its early beginnings in ancient trade practices to the sophisticated, data-driven discipline it is today. The evolution of RM has been shaped by technological advancements, market dynamics, and changing consumer behavior. As the travel, hotel, and tourism industries continue to evolve, revenue management will remain a critical tool for maximizing profitability and ensuring long-term success. 💡 📈 The continued integration of AI and machine learning into revenue management is expected to lead to even greater improvements in profitability and efficiency. Companies that can effectively leverage these technologies will be better positioned to respond to market changes and maximize revenue. The growing emphasis on sustainability and ethical considerations in revenue management is also expected to continue, with companies that can effectively balance profitability with environmental and social responsibility better positioned to succeed in an increasingly competitive market. 📈 💼 Revenue management is not just about maximizing profitability, but also about meeting the needs and expectations of customers. Companies that can effectively balance these factors will be better positioned to achieve long-term success in an increasingly competitive and dynamic market. The future of revenue management lies in the continued integration of technology, with a focus on automation, personalization, and sustainability. 💼 By: Vinícius Carli Geraldo Contact: https://www.linkedin.com/in/geraldovinicius/

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✨ Sarah Dandashy is a verified TV travel expert, best-selling author, and dynamic keynote speaker. With over 18 years of experience in hospitality, Sarah's career took off as a luxury hotel concierge, where she earned numerous accolades 🏆 and laid the foundation for her widely recognized brand, "Ask A Concierge." 🌍 With a following of over 250,000 across social media platforms 📱, she offers a wealth of travel insights, practical advice, and the latest industry trends 📊, drawing from her rich experience at the travel forefront. ✈️ Transitioning from her role as an award-winning concierge, Sarah now travels the world 🌎, collaborating with leading industry brands. She has become a go-to travel authority on major news networks like @ABC, CBS, and Fox Corporation 📺, frequently discussing current travel dynamics 🌐. Her expertise has also been highlighted in renowned publications 📰, including the The New York Times, NerdWallet, Business Insider, USNewsper, Reader's Digest, and Thrillist. 📚 As the author of the #1 Best Selling book, "Hospitality From Within," Sarah also brings her insights to various platforms. She hosts "@The Creators" podcast 🎙️ for Visit West Hollywood and co-hosts " Good Morning Hospitality " on LinkedIn Live 🌟. Whether you're seeking practical travel tips or insights into the latest trends, Sarah's work continues to inspire travelers worldwide 🌏. ✨ Sarah will deliver educational content once per month through Travel Tech 📅 🌟 Stay connected with her journey and become part of the ever-expanding community she's built around the joy of travel. 🧳✨ Contact: https://lnkd.in/dkjUay8G #TravelTech #SarahDandashy #HospitalityExpert #AskAConcierge #TravelIndustry #TravelInnovation #TravelAdvisor #HospitalityFromWithin #TravelTips #TourismTrends #LuxuryTravel #GlobalTravel #IndustryInsights #TravelCommunity #TravelLeadership

There are so many articles about entrepreneurship online. I promised not to waste your time on theory, but rather share my personal experience. The hospitality industry trains people in the art of refinement, humility, and empathy; they are masters of compromises. Entrepreneurs are the incarnation of total conviction and determination; they are the face of dictatorship. Putting two together is an oxymoron, but ironically excelling as a hotelier can pave the way for being a better entrepreneur. It was my hospitality training that helped me to build different companies and become a serial entrepreneur, and here is how. 🔍 Observe the Less Obvious and See a Pattern 🔍 A good artist does not see a painting or a sculpture in parts but notices what forms a pattern that can be a pleasure to the eye. A hotelier notices in a hotel walkthrough patterns that make sense, or fixes those that don’t. An entrepreneur needs to identify pain points at the right time in the right places, which are often hidden. An eye for detail becomes a second instinct after a while, and it helped tremendously in my publishing startup and marketing work throughout my career. Tip: Don’t look at spots, not only lines, but at the 3-dimensional pattern, because patterns have movements, which take time and space into consideration. 👂 Listen to the Unspoken Words 👂 No hotelier can survive without good communication skills. Most communication training is about how to deliver and get a message across effectively, but the hospitality industry needs advanced listening skills. After a lot of practice, one can read between the lines. I would go as far as to say this is the number one skillset for a salesperson. I highly recommend any entrepreneur to either have an unfair advantage in product development (Product-led growth) or sales distribution (market-driven growth) ability before even thinking of starting a company. Personally, I used this skillset to become a good salesperson, selling various products to B2B and B2C clients. Tip: Listening should be at least >50% of the time when you meet with any clients, but it has to be effective listening. The number one tip for effective listening is to show on the spot and immediately after, that what you listened to is being heard by reflecting on future communications. 🌐 Holistic Experience 🌐 The hospitality industry understands what it takes to form an impression from multiple touchpoints. From seeing the website, to the road into the lobby, the main door, telephone operator, restaurant service—it is one experience. That is why all brands understand how the staff training has to be from the front door boy. Any glitch in one link can ruin the overall product experience. As an entrepreneur, the product of the company cannot be a piecemeal solution but address all needs of vital touchpoints and provide a consistent experience. Examples of how I used this skill include a novel out-of-home display at airports, and a cross-media product spanning books, videos, games, and instant messaging, in the dawn of omnichannel distribution becoming a trend. Tip: Avoid presenting the product, services, and overall experience using one set of eyes. Content will differ with channels, the profile of prospects, and how the prospects came into the awareness and interest stage of the conversion funnel. 💼 Service Mentality 💼 Many companies, even large multinational corporations, lack the service mentality that the hotel industry takes for granted. The reason could be many companies focus on giving a product and solution, forgetting you always need the human touch to deliver. Even in a digital world, the touch is more frequent and immediate, but service in a different format is expected. The hotel industry trains people from the ground up to ensure the service quality is maintained from end to end. I used this to train sales teams in my media business startups; clients from large brands to 4A agencies were overwhelmed by the attention we gave them and we won over the people, and then the business. For almost a decade, our client retention rate was over 85% every year. Tip: Invest in people, both internal and clients. In the age of performance marketing, and calculating ROI in terms of time and per headcount, this seems to be difficult. The moat builds with a good team, and the relationship with your core customers is the strongest defense you can have against copycats and competitors. ⚙️ Operation Skill and Sense ⚙️ The hotel industry is labor-intensive, operates 24/7, and the entire experience is delivered via many different people and technologies, both novel and legacy, constantly communicating. The products and services sold are diverse and mostly perishables, expiring within a day (e.g. a hotel room of different types and packages via different channels). The operation complexity is second to none, and you will not hear anything when things run smoothly, like a high-powered engine. The experience aggregated from operating on the front lines allowed me to anticipate needs and operation threats in various industries when launching a new product or services. Tip: Be sure-footed but light-footed. Act quickly but give room to react even faster. Do not duplicate and expect the same results every time. The reason I wanted to share this in my first newsletter is that I genuinely believe in entrepreneurship as what can make a difference in the travel industry. If everyone owns the problem and jumps on every opportunity, the industry can lead the change to come, and not just respond to change. By: Colman Ho Entrepreneurship Advisor at Travel Tech Contact: https://www.linkedin.com/in/colmanhohk/ 🌟 #Entrepreneurship #HospitalityIndustry #Leadership #Innovation #TravelIndustry 🌟

In tourism, one thing remains constant: the desire to understand and enhance the traveler’s journey. This concept isn’t just a buzzword; it’s a critical component of providing meaningful experiences. Inspired by my book “Beyond the Horizon: Unveiling Tomorrow’s Travel,” this guide will explore the traveler’s journey in the age of Tourism 4.0, focusing especially on the role of airlines. While many discussions focus on the airport experience, the true customer journey extends far beyond that, and it’s essential to consider every step along the way. So, before we begin, let’s first understand what Tourism 4.0 is. Tourism 4.0 represents a new era in travel, driven by advanced technologies and an emphasis on personalized experiences. At its core, Tourism 4.0 leverages technology to create tailored travel experiences that cater to the unique preferences of each traveler. This approach not only enhances the traveler’s journey but also streamlines the operational effectiveness of service providers, from airlines to hotels to local attractions. Tourism 4.0 hinges on the idea of interconnectivity. Different service providers—such as airlines, hotels, and tour operators—collaborate to offer a seamless and cohesive travel experience. Unlike Industry 4.0, which focuses on optimizing internal processes within individual manufacturing companies, Tourism 4.0 aims to connect various players in the travel industry to create a unified experience for travelers. This interconnectedness transforms the way we perceive and engage with travel, making it more personal and emotionally resonant. In this new paradigm, travelers are no longer passive observers; they become active participants in their journey. Technology and innovation are used to amplify the human experience, crafting immersive and customized travel experiences. It’s not just about visiting places; it’s about forming deeper connections with our surroundings and creating lasting memories. The Role of Airlines in the Traveler’s Journey Airlines play a crucial role in the traveler’s journey, often serving as the first point of contact and the primary mode of transportation. However, many airlines struggle to go beyond the basic function of transporting passengers from point A to point B. Despite advancements in technology and a greater emphasis on customer experience, several airlines fail to fully embrace the concept of Tourism 4.0. Why? They often focus narrowly on the airport travel journey, neglecting the broader context of the traveler’s entire experience. To understand why airlines often fall short, it’s essential to look at how they typically view the customer journey. Many airlines concentrate on operational efficiency, cost management, and maximizing load factors. While these aspects are important, they do not address the holistic experience that travelers seek. In contrast, Tourism 4.0 emphasizes the need to understand and enhance every stage of the traveler’s journey, from the moment inspiration strikes to the post-trip reflections. So, what a “True Traveler’s Journey” is like? Let’s explore the key stages of the traveler’s journey, highlighting where airlines can make a significant impact and where they often fall short. Inspiration and Dreaming As we know, every journey begins with a dream. The initial spark of inspiration can come from various sources: stunning photos on social media, engaging travel blogs, or recommendations from friends and family. This stage is crucial as it sets the tone for the entire journey. In the era of Tourism 4.0, digital platforms play a pivotal role in inspiring travelers, offering immersive content that fuels their wanderlust. Airlines often miss opportunities at this stage by focusing primarily on selling flights rather than inspiring travel. Many airlines present their services in a transactional manner, highlighting schedules and prices without engaging the emotional and aspirational aspects of travel. This approach overlooks the power of storytelling and visual content that can ignite the desire to explore unknown places. So how hard it is for airlines to take off into the world of inspiration and dreaming? To get it right, airlines need to invest in high-quality visual storytelling, employing stunning photos and immersive videos that capture the essence of various destinations. They should craft engaging narratives that resonate with potential travelers, using platforms like Instagram, YouTube, and travel blogs to reach a broad audience. Collaborations with travel influencers and real-life traveler testimonials can add authenticity and relatability. Airlines can use interactive content such as polls, quizzes, and live Q&A sessions to engage their audience and keep the dream of travel alive. By doing so, airlines can not only attract more customers but also foster a deeper emotional connection, making them the preferred choice when it’s time to book that dream vacation. Research and Planning Now we move to the second stage. Once inspired, travelers move on to the research and planning phase. They compare prices, read reviews, and explore various options for flights, accommodations, and activities. This stage can be both exciting and overwhelming because of the sheer volume of information available. Here also, Airlines often fall short in this phase by offering clunky, outdated websites and apps that frustrate users rather than assist them. Additionally, a lack of comprehensive information and poor comparison tools can make it difficult for travelers to make informed decisions. To get it right, airlines should invest in creating user-friendly digital platforms that provide detailed, up-to-date information, intuitive comparison tools, and personalized recommendations. Implementing AI-driven chatbots, for example, can further enhance the experience by offering real-time help, answering queries, and providing tailored suggestions. By making the research and planning process as smooth as a first-class flight, airlines can make a positive impression and build lasting trust with potential customers. This is where the rubber meets the runway: customers usually pick an airline based on reputation, convenience, and price. While the airline might not be the first thing that comes to mind when dreaming of a vacation, it’s often the first item added to their shopping cart because of its restrictive nature and cost. In this way, the airline can either be the wind beneath their wings or the turbulence in their trip planning, making it crucial to get this phase right. Booking and Payment The booking and payment stage is where the dream takes a tangible form. This phase is critical as it directly affects the traveler’s perception of convenience and security. A seamless booking experience, with multiple payment options and transparent pricing, is essential. What airlines are getting right is offering a variety of payment methods—credit cards, digital wallets, and even installment plans—that cater to different customer preferences. This flexibility can make a world of difference for travelers on a budget. However, where airlines often hit a stall is in the usability of their booking platforms. Clunky, slow, and confusing websites or apps can turn excitement into frustration faster than you can say “fasten your seatbelts.” Transparent communication about fees, policies, and services is also key. Hidden fees or unclear terms can lead to misunderstandings and erode trust. To really get off the ground, airlines need to ensure their booking platforms are intuitive, fast, and secure. Think of it as the in-flight service before you even board the plane: pleasant and accommodating. Pre-Trip Preparation As the departure date approaches, travelers engage in pre-trip preparations, including online check-ins, packing, and last-minute research. Modern technology plays a significant role in this phase, offering conveniences like virtual boarding passes, real-time flight updates, and personalized travel tips. Hotels and destinations often excel in this stage by providing comprehensive digital concierge services. These services can include everything from local weather updates to curated packing lists based on the destination’s climate. Detailed destination guides that highlight local attractions, dining options, and cultural insights are invaluable for travelers looking to make the most of their trip. These proactive gestures not only make the traveler’s experience better but also make them look forward to and feel excited about the journey ahead. In contrast, some airlines experience a few bumps by not fully capitalizing on these opportunities. Clunky, fragmented digital tools and scattered information can overwhelm travelers, turning what should be a smooth preparation phase into a stressful experience. What airlines are getting right, however, is leveraging technology to offer virtual boarding passes and real-time flight updates. These tools can significantly streamline the pre-trip process, making it more efficient and less stressful. Personalized travel tips and destination guides provided by airlines can also add a helpful touch, but they often fall short compared to the comprehensive services offered by hotels and destinations. To ensure a seamless journey, airlines should focus on enhancing the pre-trip experience by providing comprehensive digital tools that simplify these tasks. For instance, mobile apps can offer features like packing checklists, weather updates, and detailed destination guides, all in one place. Digital reminders for online check-ins and real-time notifications about flight status changes can significantly reduce stress and improve the overall travel experience. Think of it as having a personal travel assistant right in your pocket, ensuring everything goes off without a hitch. The Airport Experience The airport experience is a critical touchpoint in the traveler’s journey. Long lines, security checks, and flight delays can significantly affect a traveler’s mood and overall satisfaction. For many travelers, the airport is where they have their first face-to-face interaction with the airline staff, setting the tone for their long-anticipated trip. What airlines often excel in during this phase is leveraging technology with automated check-in kiosks, self-service baggage drops, and biometric boarding processes, all of which can reduce wait times and enhance efficiency. Providing real-time information about gate changes, delays, and airport services through mobile apps keeps travelers informed and reduces anxiety. Offering lounge access and priority services for frequent flyers or premium customers also significantly enhances the experience and fosters loyalty. However, the human touch is where many airlines can truly differentiate themselves and improve the airport experience without increasing operational costs. Friendly, approachable, and well-trained staff can make a world of difference. Positive interactions with airline personnel can ease stress and create a welcoming atmosphere. When travelers are greeted with smiles, treated with respect, and provided with helpful information, it can improve their overall experience. On-Trip Experience The on-trip experience extends beyond the confines of the airport and the flight itself. It encompasses the entire journey, including transportation, accommodations, activities, and interactions with the local culture. This phase is where the true magic of travel happens. Ensuring travelers know what to expect regarding legroom, seat width, and additional amenities can significantly affect their comfort levels during the flight. This transparency helps manage expectations and allows travelers to make informed decisions, enhancing their overall satisfaction. But, beyond the flight, airlines have a golden opportunity to transform into comprehensive travel providers. By partnering with local businesses and service providers, airlines can offer curated travel packages, exclusive discounts on attractions, and personalized recommendations that enrich the traveler’s journey. This comprehensive approach to travel not only enhances the customer’s experience but also presents airlines with new revenue opportunities. By identifying and understanding the customer’s journey at the destination, airlines can offer additional services, such as guided tours, cultural experiences, and adventure activities. This move towards becoming a complete travel provider allows airlines to tap into various revenue streams, beyond just the ticket sales. At last, airlines should not view their role as simply transporting travelers to and from destinations. Instead, they should see themselves as integral parts of the traveler’s journey, accompanying and enhancing the entire experience. By doing so, airlines can build stronger relationships with their customers, foster loyalty, and increase their market presence as comprehensive travel facilitators. Creating Memories The essence of travel lies in the memories created along the way. Engaging with local cultures, trying new foods, and taking part in unique activities shapes the traveler’s perception of the journey. Authentic experiences and genuine connections are what travelers cherish the most. By providing travelers with personalized digital content through mobile apps and in-flight entertainment, airlines can offer tailored recommendations for local attractions, dining spots, and cultural experiences. Partnering with local businesses and tour operators to provide exclusive discounts or curated experiences can add value without direct expense. Airlines also can enhance customer engagement through well-trained staff who share insightful tips and personal stories about destinations. Encouraging passengers to share their own travel experiences via social media, perhaps motivated by contests or recognition, can create a community of shared memories, enriching the travel experience organically. But there is a catch: if any of your airline’s touch points were bad, the traveler will remember for a lifetime. And while airlines may not control every aspect of the on-trip experience, we can definitely see they have a significant role in shaping it. In doing so, airlines elevate their role from mere transportation providers to integral partners in the traveler’s journey, enhancing both the travel experience and their own brand loyalty. Post-Trip Reflection The journey doesn’t end when the trip concludes. Post-trip reflections, sharing experiences, and providing feedback are integral to the customer journey. Encouraging travelers to share their stories on social media, review platforms, and travel blogs can create a positive ripple effect, inspiring future travelers and enhancing brand reputation. Airlines can engage with travelers post-trip by sending personalized thank-you messages that reflect specific aspects of their trip, making the communication feel genuine and thoughtful. For example, mentioning a particular flight or destination in the message can show that the airline values the individual's experience. Requesting detailed feedback through well-crafted surveys that ask the right questions can provide deeper insights into the traveler’s experience. Questions that deepen into specific moments, such as interactions with staff or the comfort of amenities, can yield valuable information. A real-life example of this approach is Delta Air Lines’ use of personalized post-trip engagement. Delta sends out personalized thank-you emails to passengers after their flights, often including a summary of the passenger’s journey, such as flight details and destinations visited. They encourage passengers to share their travel experiences on social media by highlighting specific hashtags and sharing user-generated content on their platforms. Delta’s feedback system is user-friendly and insightful, asking specific questions about various aspects of the journey. This allows Delta to gather detailed feedback and tailor their services to better meet passenger needs. Engaging with travelers’ memories by inviting them to share their favorite moments and photos on social media or the airline’s own platforms can further personalize the relationship. Airlines can also create dedicated hashtags or social media campaigns to encourage this sharing, creating a sense of community among travelers. Understanding the traveler’s journey in the era of Tourism 4.0 is essential for airlines aiming to provide meaningful and memorable experiences. This approach transforms the role of airlines from mere transportation providers to integral partners in a traveler’s entire journey. From the initial spark of inspiration to the final post-trip reflections, every stage offers opportunities for airlines to connect with travelers on a deeper level. As Amelia Earhart once said, “Adventure is worthwhile in itself.” By focusing on personalization, thoughtful engagement, and continuous improvement, airlines can ensure that every traveler’s adventure is indeed worthwhile, taking customer experience to new heights. By: Daniel Brunod Airline Industry Advisor at Travel Tech Contact: https://www.linkedin.com/in/brunod/

The Evolution of Third-Party Cookies: Google's Decision and its Implications In the realm of digital advertising and user data privacy, the role of third-party cookies has been a contentious issue for years. Recently, Google made headlines by announcing a significant shift in its approach towards these cookies, diverging from its previous plans to phase them out entirely. This decision marks a pivotal moment in the ongoing debate surrounding online privacy and advertising practices. Google's Change in Course Initially, Google, like many other tech giants, had committed to eliminating third-party cookies from its Chrome browser by 2022. The rationale behind this move was largely rooted in enhancing user privacy amidst growing concerns and regulatory scrutiny. Third-party cookies have been criticized for their role in enabling invasive tracking practices, which can compromise user anonymity and control over personal data. However, Google's recent decision to retain support for third-party cookies, albeit with modifications, reflects a nuanced approach to balancing privacy concerns with the needs of advertisers and publishers. The tech giant now aims to introduce a more privacy-centric alternative, referred to as the Privacy Sandbox, which seeks to provide effective ad targeting capabilities while safeguarding user privacy. Implications for the Digital Advertising Landscape The decision to keep third-party cookies, albeit in a restricted manner, is likely influenced by several factors. One key consideration is Google's position in the digital advertising market, where it competes with other major players like Facebook and Amazon. By maintaining some form of cookie-based tracking, Google can continue to offer robust advertising solutions to marketers while navigating the complexities of privacy regulations. Moreover, the retention of third-party cookies could provide a smoother transition for advertisers and publishers who rely on these technologies for targeting and measuring campaign effectiveness. Abruptly phasing out such cookies could disrupt existing advertising strategies and potentially harm smaller players in the ecosystem. Comparing Perspectives The decision by Google contrasts sharply with the outlook I presented in my LinkedIn article back in April, which discusses the implications of the end of third-party cookies, particularly within the travel industry. Google's revised stance suggests a more gradual and measured approach towards enhancing user privacy while maintaining a functional digital advertising infrastructure. The Privacy Sandbox initiative underscores Google's commitment to innovation in ad technology, aiming to create a more transparent and consent-based framework for data usage. Surprises aside (never take Google for granted, that’s the key lesson), it will be interesting to see how the industry and regulators react to the news in the upcoming weeks, as a lot of work and effort had been put to minimize the impact on personalized marketing efforts and the ability of travel brands to effectively reach and engage with prospective customers, which will now (most likely) discarded/deprecated. Looking Ahead As Google navigates the complexities of digital privacy and advertising, the industry watches closely for further developments. The evolution of third-party cookies and alternative tracking methods will continue to shape the future of online advertising, with implications for businesses, consumers, and regulatory bodies alike. In conclusion, Google's decision to retain support for third-party cookies reflects a strategic pivot towards balancing privacy concerns with the operational needs of its advertising ecosystem. This shift underscores the dynamic nature of digital privacy regulations and technological innovations shaping the future of online advertising. As the industry evolves, stakeholders must adapt to these changes while prioritizing user trust and transparency in data handling practices. By: Alejandro Gomez Losada Rosso Contact: https://www.linkedin.com/in/aglosada/

We are thrilled to introduce Ken Patel as our new Travel Advisor at Travel Tech. Ken is a visionary leader in the hospitality industry, often called the "Elon Musk of Hospitality." 🌟✨ 💼 His Journey: Recognized as one of the Top 50 Most Influential Hospitality Leaders globally in the 2021 Hospitality Power Index TM, Ken aims to revolutionize the industry through technology innovations that create exceptional experiences for guests and employees. 🌐🏆 🎓 Academic Excellence: With an MBA in International Hospitality Management from a top-ranked school, Ken has dedicated himself to hospitality since his teenage years. 📚🏨 🌍 From NYC to Atlanta: Originally from NYC, Ken now resides in Atlanta, driven by the belief that relentless pursuit leads to success. His journey over 25 years has created a network of athletes, celebrities, and world giants, enriching his business acumen. 🌆✈️ 🚀 Leadership Philosophy: Ken tends to think you have to lead rather than follow, embodying a true leader's spirit in the ever-evolving hospitality industry. 🌟🌍 Welcome, Ken! We're excited to have your expertise and visionary leadership guiding us forward at Travel Tech. Together, we're set to achieve unparalleled success and innovation! 🚀🌟 EV Hotel Group EV HOTEL- Evolution Venue ™️ #TravelTech #HospitalityLeader #Innovation #VisionaryLeadership #GlobalTravel #TechLeader #HospitalityIndustry #TravelAdvisor #BusinessExcellence #Leadership #Atlanta #NYC #HospitalityRevolution #TechnologyInnovation

Por: Vinicius Cari Geraldo • Travel Tech Founder The Rise of RevPAM and the Decline of RevPAR in Modern Hotel Management Introduction In the hospitality industry, traditional metrics such as Revenue per Available Room (RevPAR) have dominated performance measurement discussions. However, as the industry evolves, so does the need for more holistic and comprehensive metrics. RevPAM (Revenue per Available Square Meter) has emerged as a crucial metric, reflecting a broader perspective on revenue management that captures the total income potential of a property beyond just rooms. Why RevPAR Is Becoming Obsolete While useful, RevPAR offers a limited view by focusing only on room revenue divided by the number of available rooms. This metric ignores other potential revenue sources, such as food and beverage, spa services, and other facility uses. In today's multifaceted hospitality environment, relying solely on RevPAR can lead to underutilization of assets and missed opportunities for revenue optimization. Understanding RevPAM RevPAM stands for Revenue per Available Square Meter, measuring the revenue generated per square meter of available space within the property. This metric encourages hotel managers to think beyond the room and consider all parts of the hotel as potential revenue generators. Mathematical Formula for RevPAM