Welcome to the Hilton New York
November 9, 2009
“Sell the right product to the right customer at the right time for the right price, thereby maximizing revenue…”
Revenue Management
“Revenue Management,”
by Robert G. Cross
Understanding Supply & Demand Determining when “The Price is Right!” Ensure Availability for the Last Customer
What is Revenue Management?Objectives
Who stays in our hotel?
Transient Categories Group Categories Permanent
Distribution
Phone/Fax – Traditional Method– HRCC: Hilton Reservations Call Centers
Global Distribution Systems (GDS) Internet
– Hilton.com– 3rd Party Distribution Channels (Expedia,
Travelocity, Orbitz, Priceline, Hotels, etc.)
FIT/Special Pkgs Hilton Direct
Where do we sell our hotel rooms?
The Competition
Defining your competitors Measuring Performance
– STAR– RevPAR
Fair Share – How big is your piece of pie?
HHC Corporate Goal for Forecast Accuracy Types of Forecasts
– Annual Budget– Rolling– Monthly– Weekly– Daily
Team Effort!
Forecasting
Group & Catering Revenue Management
Goal: To maximize public space revenues Group Catering
– Food & Beverage– Resource– Rental
Free Sell Calendar
REVENUE MANAGMENT
Any Questions ?
Sales and MarketingSales and MarketingOverviewOverview
WHAT DOES THE SALES WHAT DOES THE SALES DEPARTMENT DO?DEPARTMENT DO?
SALES DEPARTMENT SALES DEPARTMENT OVERVIEWOVERVIEW
Convention Sales = > 125 peak Business Travel Sales
International Transient Sales FITConference Center = < 125 peak
International Sales Group Tour
TEAM GOAL = $64,661,241
GOAL = 123,672 room nights
Group SalesGroup Sales Business Transient SalesBusiness Transient Sales
COMPETITIVE SETCOMPETITIVE SET
GROUPGROUP
MARRIOT MARQUIS
SHERATON NEW YORK
GRAND HYATT
BUSINESS TRAVEL
SHERATONNEW YORK
MILLENIUM BROADWAY
MARRIOTMARQUIS
PARKERMERIDIEN
INT’LINT’L
GROUPGROUP
MARRIOTT MARQUIS
SHERATONNEW YORK
GRAND HYATT
DEFINITEDEFINITE
ANNUALANNUAL (sweet!) (sweet!)
GROUP SALES PROCESSGROUP SALES PROCESS
Customer sends RFP to hotel
Hotel reviews RFP and sends availability
Customer asks for 1st option hold on space
Verbal definite & contract issuedTENTATIVTENTATIVEE
PROSPECTPROSPECT
LEADLEAD
INQUIRYINQUIRY
How do we confirm your business?How do we confirm your business?
DMPE DMPE
sales system to protect your spacesales system to protect your space
SSG SSG
suggestive sell guidelines to determine your pricingsuggestive sell guidelines to determine your pricing
Revenue ManagementRevenue Management
to review profitability (rooms, space and food and beverage potential), maximizing to review profitability (rooms, space and food and beverage potential), maximizing business mix to proceed to contractbusiness mix to proceed to contract
Approvals Approvals DOSM, DOS to proceedDOSM, DOS to proceed
… …and we still aim to respond to all leads in FOUR hours! and we still aim to respond to all leads in FOUR hours!
“FROM CONVERSATION TO CONTRACT”
ROADBLOCKS TO CONTRACTS
No flexibility with dates or pattern
Decision process
undefined
Requirement of 24 hr hold
on space Requirement of 24 hr hold on
BALLROOM space (particularly
painful)Reluctance to disclose
3rd party commission
Space or room needs as yet
undetermined
Contractual language
JANUARY JANUARY
FEBRUARY FEBRUARY
MARCHMARCH
JULY JULY
AUGUSTAUGUST
LET’S MAKE A DEALLET’S MAKE A DEAL
Thank You!
Finance Overview
Ron Marron – Director of Finance
Support the Operation Audit and Record Revenues Accounts Payable Payroll Preparation of Financial Statements Internal Controls Maintain Licenses, Service Contracts, Leases Forecasting and Budgeting
Questions?
Role of the Finance Department
Human Resources Overview
Jennifer Tormey – Assistant Director of HR
Human Resources Department
•Recruiting•Training
•Labor Relations•Benefits
•Team Member Recognition and Reward
©2009, Hilton Hotels Corporation
Recruiting
Hiring practices:– Affirmative Action – Equal Opportunity Employer– Union Posting– Dept. of Labor– Job Hotline– Resumes/Applications/Screening/Interviews/Transfers/
Promotions– E-Recruit www.hiltonfamily.jobs– Checks – background, credit, drug– Offer Letter– Transfers in / out– Visa / H1B
©2009, Hilton Hotels Corporation
Training
©2009, Hilton Hotels Corporation
New Hire Orientation (2 days) every 2 weeks– Team Member Handbook / Policies and Procedures– Diversity – Welcomed and Invited– Harassment Free Workplace– Customer Really Matters– Guests with Disabilities / Service Animals– EEO – federal, state and local laws– Safety & Security– Service Standards
Job Skills checklist (after 30 days) Mastering the Art of Service (after 60 days)
Training
Manager Training:– New Manager Orientation – Webinar 1 and 2– Labor Relations – Leadership Workshop– Manager’s University – Four Modules– Diversity– Managing Legally– CPR– Manager on Duty– Behavior Based Interviewing– Continuous Improvement Process
Labor Relations
Union Union Delegates Union Business Agents Grievance process Arbitration Impartial Chairman
Federal, State, Local Laws
Workers Compensation Unemployment EEO Affirmative Action Plan FMLA Military Leave Department of Labor
Recognition and Reward
Newsletter – monthly PRIDE Award Ceremony ($150) per month Big Apple STAR Awards – NYC wide Excellence in Leadership Award – Quarterly PRIDE Winner of the Year Excellence in Leadership of the Year Retirement / promotion celebrations Service Award Recognition Mystery Shopper Report Departmental competitions pertaining to service standards and
SALT scores Sports Teams – soccer, baseball, basketball Scholarships – Union and Hotel Association Night Owl Breakfast and PM Dinner
Sustainability Overview
Jason Tresh – Assistant Director of Food & Beverage
Sustainability
YESTERDAY
TODAY
TOMORROW
Hilton NY Yesterday
UTC PureCell™ fuel cell power system Delphi / BMS interface Decreased Newspaper waste by 25% Energy saving light bulbs 1 ½ gallon flush toilets Restrictors in shower heads
FUEL CELL
We are proud to be one of the only two hotels in the city to use the fuel cell technology to
generate a pollution-free energy on our own.
We generate 200 kilo watts, which is used to heat our domestic water. Using less fossil fuels creates a smaller carbon footprint.
Delphi / BMS Interface
All function space within the Hilton New York is managed by a temperature control system that synchronizes the event time to automatically starts and ends cooling and
heating of the meeting rooms.
Decreased 25% Paper Waste
We have decreased 25% of the paper waste by eliminating daily newspaper delivery and placing newspapers on every floor credenza
as well as on the concierge desk.
LIGHTING
Currently, 90% of bulbs in the Hilton New York are energy efficient.
Incandescent light bulbs use 100 watts, while compact fluorescent light bulbs
only uses 15 watts with a longer lifespan.
With 2000 rooms using 7 light bulbs, we are cutting back 1,737,400 kilo watts per
year.
Hilton NY Today
Water Purification System Opt Out Housekeeping Program Organic waste decomposition system Green Contest
Water Purification
Implemented an on-site water purification system created by Natura® Water. Regular tap water is purified into a high quality, chilled still and sparkling water in re-usable glass bottles.
Housekeeping Opt-Out Process
Saves 14.3 gallons of water for each day a guest opts out of service for linens and towels
Additional water savings from cleaning Electrical Savings Chemical Savings Potential Labor Savings
Decomposition System
As the largest hotel in the New York City, the Hilton New York produces about 8 tons of wet garbage everyday. The organic waste decomposition system uses microorganisms and water to break down the food wastes into a disposable liquid.
Hilton NY Tomorrow
Plant Keys (made for biodegradability & sustainability)
Refillable aluminum sport bottles Banquet Water Program Green Roof
Refillable Water Bottles
Reusable, refillable, recyclable
FUTURE LOOKS GREEN
@ HILTON NY
Safety & Security Overview
Anthony Spagnuolo – Director of Security