Exploring ‘Revenue per guest’ RevPAG with Agilysys

‘Income per visitor’ or RevPAG is a much better method to assess complete profitability and extra importantly, future income potential. That is the place you may get an edge to develop your resort earnings in addition to obtain repeat visitors.

In an interview with TDM, Tony Marshall, Vice President & Managing Director, Asia Pacific, Agilysys tells us about his success mantra, crew motivation, RevPAG, personalisation, and the power to take care of a single visitor profile throughout all of the merchandise with Agilysys.

Journey Each day Media (TDM): What’s the mantra for driving gross sales and operations for Hospitality Know-how Firms? Kindly title just a few resorts that have adopted your Hospitality Tech options in APAC.

Tony Marshall (TM): At Agilysys, our mantra for driving gross sales and operations is “Buyer-Centric Innovation.” We consider in understanding the distinctive wants of our purchasers and delivering progressive options that improve visitor experiences and streamline operations. Within the APAC area, prestigious resorts like The Langham, Hong Kong; Mandarin Oriental, Kuala Lumpur; and Marina Bay Sands, Singapore are a few of the esteemed purchasers who’ve adopted our hospitality tech options.

TDM: How do you retain your crew motivated and performing effectively?

TM: Firstly, we recognise the significance of aggressive compensation. We be sure that our salaries aren’t solely aggressive but in addition reflective of the laborious work and dedication our workers carry to their roles. This monetary stability is a foundational side of our dedication to our crew.

Past financial compensation, we focus considerably on making a tradition of recognition and empowerment. We perceive that everybody’s contribution is significant to our success, particularly in these making an attempt instances. Common recognition of efforts by inner communications, highlight options, and direct acknowledgments from management performs a vital half in protecting morale excessive. Moreover, we put money into our workers’ development and flexibility. Even with tighter budgets, we emphasise the significance of ability enhancement and flexibility.

This contains cross-functional coaching and enabling our crew to tackle new challenges throughout the firm. We’re leveraging on-line platforms and inner mentorship applications to facilitate steady studying {and professional} improvement. Moreover, we keep open strains of communication. I personally be sure that I’m accessible and that our administration crew often engages with employees in any respect ranges to know their wants and challenges. This open dialogue helps us to adapt our methods and help mechanisms in real-time, making certain that our crew not solely feels heard but in addition valued. Lastly, we’re dedicated to fostering a supportive and inclusive work atmosphere. This implies selling work-life stability, encouraging versatile work preparations the place potential, and supporting our workers’ wellbeing by varied initiatives.

TDM: What’s the dynamic definition that you’ve got given to Income Per Out there Room (RevPARR) to go with Hospitality Options by Agilysys?

TM: Agilysys would argue that RevPAR, whereas nonetheless necessary, is now an inferior measurement of a resort’s efficiency. RevPAR seems to be on the occupancy charges and profitability of bedrooms however misses the extra income that comes from visitors spending on different property facilities. In lots of circumstances the visitor income derived from different facilities and companies exceeds the room income for that visitor. Taking a look at complete income from the attitude of the visitor, so ‘Income per visitor’ or RevPAG is a much better method to assess complete profitability and extra importantly, future income potential.

There’s an analogy with the taxi trade. It was all the time the case that this trade solely ever monetised ‘area’ the area being the drivers cab. Uber got here alongside and began analysing the passenger. What they learnt concerning the passengers has enabled them to open many further, and extra profitable income streams together with meals and different transportation strategies. The passenger was all the time the place the worth could be, it was by no means the cab. Equally, the visitor is all the time the place the worth will likely be, it isn’t solely the room.

TDM: Knowledge pushed selections are the buzzwords in relation to giving visitors the personalised consideration to particulars that brings within the ‘wow’ issue. How does Agilysys present that form of information? 

TM: Our view is that the hospitality trade is actually solely scratching the floor of personalisation. At this stage personalisation is ‘realizing’; realizing your title, realizing a few of your preferences, what personalisation isn’t but doing is ‘predicting’ and that is the place we consider the actual worth of personalisation exists.

Agilysys has been working with a third-party information science agency to check propensity modelling in hospitality. The flexibility, by information, to develop profitability by providing visitors further companies that information suggests they are going to be very more likely to buy. This modelling, based mostly on a pattern of 1,000 visitors in a multi-amenity property reveals that 10% further income might have been out there in a 12-month interval from these 1,000 visitors.

Essential to this degree of personalisation and the power to, in future, use visitor information to foretell income development, is a system structure that’s based mostly on a single visitor profile. Right now most hospitality system suppliers promote architectures that require a number of profiles of a visitor making true personalisation troublesome and getting development worth from information and personalisation nearly not possible. Uniquely, we consider that Agilysys is the one supplier that’s designing programs for a knowledge pushed future.

TDM: You’ve got been within the APAC marketplace for 10 years now. What sort of unique hospitality options do you provide that make you stand above competitors. What sort of synergy and interconnectivity do your options lengthen?

 TM: Over the previous decade, Agilysys has developed a complete suite of over 30+ merchandise that collectively provide a full hospitality ecosystem. These options vary from superior property administration programs (PMS) and point-of-sale (POS) programs to stock and procurement, analytics platforms, and visitor engagement instruments. What units us aside is our skill to combine these various merchandise seamlessly, offering resorts with a cohesive and interconnected system.

Considered one of our standout options is the power to take care of a single visitor profile throughout all our merchandise. Which means that visitor preferences, historical past, and interactions are tracked and accessible by each touchpoint, whether or not on the entrance desk, restaurant, spa, or by cellular engagement. This degree of synergy and interconnectivity permits resorts to ship extremely personalised and constant visitor experiences, enhance operational effectivity, and make data-driven selections that improve general efficiency.

Uniquely, Agilysys is 100% targeted on the hospitality trade and has been since inception. We don’t present options to some other trade, hospitality isn’t a line of enterprise, it’s our enterprise. Each developer, each help particular person world wide, each salesperson, and each worker is 100% dedicated and devoted to the trade, in reality lots of our workers have labored in hospitality themselves.

We consider that that is our trump card. Prospects and purchasers can know that we’re as 100% dedicated to their success as we’re to our personal.

TDM: Are your hospitality options a one-time sale or do you provide common help? As an example, how large a crew supplies the backend help to the resort submit gross sales?

 TM: Our hospitality options include complete, ongoing help. We consider in constructing long-term partnerships with our purchasers, and our help crew is an integral a part of this dedication. Put up-sales, we provide 24/7 buyer help, common software program updates, and devoted account administration.

TDM: What developments do you foresee in hospitality know-how in APAC? What new merchandise will you offer to this market?

 TM: Within the APAC area, we anticipate important development in AI-driven personalisation, contactless applied sciences, and enhanced cybersecurity measures. Friends more and more anticipate personalised experiences, and resorts are investing in applied sciences that guarantee information safety.

Developments in Hospitality Know-how:

• AI-Pushed Personalisation:AI will improve visitor experiences by managing itineraries and recommending actions.
• Voice-Activated Companies:Friends will use voice assistants for room service, thermostat changes, and different requests.
• Contactless Experiences:Applied sciences like cellular check-in, digital keycards, and contactless funds will change into normal.
• Enhanced Cybersecurity:Accommodations will prioritise sturdy cybersecurity measures to guard visitor info.
• Sustainability Options:Friends can monitor their environmental affect and obtain rewards for sustainable decisions.

New Merchandise for the APAC Market:

• AI-Powered Visitor Engagement Instruments:To boost visitor interactions and assist employees ship higher service.
• Superior Cell Test-In/Test-Out Options:These options will streamline processes for a seamless visitor expertise.
• A Complete Visitor App:This app will combine AI for itinerary administration, personalised suggestions, and voice controls.
• AI in Employees Roles:We are going to leverage AI to drive automation and efficiencies, permitting employees to concentrate on distinctive service.