Panel: Steve Saxon (McKinsey), Tejveer Singh Bedi (Park Hotel Group), Puneet Mahindroo (Four Seasons Hotels and Resorts), Limin Cheng, Director (Marina Bay San)
Automatically Generated Transcript (may not be 100% accurate)
So they would look what's all our readers tactics that faintly but he was based Thomas clearance as though they're zarb. A bit years. In oracle came back and your behaviour. Sore arm. The science behind these consumer behaviours qualitative really economics. And the content became bad is that consumers are basically. Be Mickey that's addresses. At bank delivered a management system our gives the termination hundred bus in beads are now that's and behaviour. But that's not how you the most clears out. And it would have a look so I was actually swing to a bed not. I bed up by a higher risk ban highly usable fess up. And CR product or you study hard on big economic spacing. Story fuel our see the full slate. I hope you can see it. Our ability options. Before us miners and off Glenn option for subscription for winding up the second wian is. Another option to wonder info diverse bridges. That link subscription side puts them on less optimistic about the been been doctor. And that I outlined in the opening bell on main option Betsy options. Gonna get its offer hands I'll I would lay who will put supporters be as you can bet you China fuel stood by at least one subscription period. Bridge what I ruble for the full subscription. Appear. While Google for the second addiction. What about the total line. A year. So it's are quite a large ball for the first time. So work out this is about any hours back so you've really been born lend that bank so. So palm. So a lot of the update for the plus one while most man for the second one. V so sum up big for the current month. Now what would it was. Only team to deliver a bit. Bid other volatile surveyors. US 59 dollars one year subscription big on this adding he would czar let access. But put option the second option now Reuters US won't really favour and heading towards opening as well as online. So gonna get assured fans for the first one. Sure thanks to a secular one. Excellent tool. What we basically Soros. 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Using the big option that revenue increased company you'll assembly people percent that means 50% more more people jaws the second option. Because there was a big way. By using a big way. Be put Dreier fifty by the total percent more people who were there on very favourite. So. This is something that upheaval the urban economics introduce seven it's been great use any the most nightmares radios in about. But it's quite interesting. So all our similarly. Garden the second accept as far as leaving. What clearly is based on oh I stimulative negative outcomes. Is much more stronger than our stimulate the positive outcomes. Exam Berlin this. Slide is. Posing your bird we're ready percent bad I don't think anyone would pick it up but. People send fax 3. Sure. Essentially the same thing. Bad. Howard in what barely owes you zip code there's e-commerce user. Bet you never see it you never see your real there was less if you will this back into me. 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This dealers were built and eleven people have already bought. When BP billable people looking at their Sebelius yesterday I bonds that basically you can introduce. Who say about. It's a limited bank more thoroughly. Get this one is far wide hyperbolic discounting heard some very big finger but it's quite easy its VoIP. It's been stuck images do what's that mean. As human beings we value limited avoid much more of them. That wiped off. Bank and said implicated in the video design already programs. You can design logo programs which say that European it as a pointer you're gonna feel mates. Are you gonna then they give them see you back humiliate you. Asked do that by buying a venue get a fever neck so laden the bids below a willingness running tears that. If you give me an immediate 50% off at this people really have more of the chance. Off picking this up. Is on the last one that's on its oil laden time as widely enforcement. I was basically receivers. And retailers will show me guards are sought to aspect we're at this reinforces. You know plus network. An option soy could see some of the basing Leo. You know what they're speed of the bid beach and you see off these were seen opening up and seeing that you off then will this buyback bid only really enjoyed it. It's the enforcement meant that aspect which basically dark imposes one. And last one is survey simplest but anger effect our. What bank effective is. Bad. You can actually design your basing and you could put followed a then debating in every image you anchor particular place. Exam but. You see this base. Ice barred from the Lipton say they're C. The foot space which is that in 99 dollars. And maintained that physical 50000. And the second one use your hundred pardon. What happened was is because iPod anger towards the let's say and I come bed garden the worst option with the second option which want to hours later. IPod anchor properties but that's. Yeah as I mean actually just keep the basic. I'll end the you have this and prosper bedding ibex. They may simply exam but. I see bureau's. Men menu. I actually see the publisher might not my mid Libya's bias and it's what actually 1%. I introduce a cheaper ways in the run by six which maybe the same possibly I'm lawn already bigger. I do so expensive option. Targeted I'll take the market base we just about mobile others we don't own anomaly about what hurdle by anchor everything works as a middle option. I want people of the pick up the middle option to run when he B land amid boilers which they realise contribution margin. As needed but about big. So far there's somebody off part. The biting back expect can be used who into expanding my behaviour after they've Newman system we commend a place do you. Now oil demand. If you want to implement something let this arm. My recommendation as you said but that's talk I don't bears buoyed by that. Let your be about exam but the bad deal but now. And the view when doctor mace and of course you can iPod funnier systems. I'd be happy to introduce our Babylon earlier human systems. Steven as the why do we have a moderator a bigger problem. The Dutch. But. Thank you thank remarked that with a great. Introduction setting Tibet's. Are we talking about revenue management systems here. First a quick introduction. I'm Steve Sachs and and a partner with McKinsey. And I'm based in Shanghai now although I also spent eight years here in Singapore previously. And I work with travel and transportation companies across Asia. And thank you very much for tonight for travel for the invitation to come here and also the opportunity to loan them. Such expertise on the panel. I have to confess I do a lot of work in revenue management Andy revenue management systems. But mostly for the airlines. And so when I was invited to to moderate on revenue night systems here as well let me moan about hotels. I would shops and forgive me if it is controversial. Bit Dicey along way back. And I would love big use of the panel to start on and wait you see get new management systems today in hotels. Are you a long way behind where the airlines up and we meant. I think. I think we've kind of in the current. I think it carry revenue management system Penske is alive via effect until March. Foreign different people from different sites so that in the act in ways that there you have the humour that goes with the first thing that pitch. NR and I think the company that the states for. By in the last three years I think this year that nucleus maintain. That depicting fire off its heaviest hitters in Eads don't yet the opportunity to increased. Says there. I'd I'd be the the most common revenue management system is XL. And then it's. You where you look but yellow fair value I think that that if you need. I think yes everything started their X that. Would be. Was. Ed I think that. That's your Norwich is bonds. Are a lot of you know which. I use. Are. The best thing is. Are you hit a bit. There. What. Have you garden are. Weather up add some airlines and hyperbolic. Be done are arguing it would be predictive modelling are. Even if in the that. Our new definition night that idea. Ehrlich fit. The odds that the by the credit. So could end up through the opening that we've done a long long way. Up our you'd build. What if it are reaching a stage that you can write what at the mine. I think look individual. No but I do yeah right. Forgive them for their. I think I'll. Yes to a later year out of Venezuela view that. Either got. I think the Americans for the they both of you face a quite big because you can immediately see another way to. Our of the systems. The second problem is we have hourly UC system's view that ballyhoo barriers to entry particularly you know bases in the bid. Which include dude yeah it's the about what's really. I would say once a player in the property management systems bids. Got put notes. Harm. You don't have much destruction that is the what might lose I'm not big Bentley. Baker now a dead got off I'll let you manned systems coming in this. Our productive well this. What's more blue is something like a subscription model which has item easier to bed is what belt. The possible technology adoption has become much cheaper. It is in the last two years so you would see a quick upbeat. In systems the by the new technology Douglas technology's coming clear. It is easy to allow the second problem is we have been the heavy divisions. Harm. Be expensive at every indication to where. You can if you have who have lately event together so yeah baby came over sit on Elian's. Our. That upbeat it's happening it's not happening we do you up because basically the what's the big argues become it's become Babylon powerful must understand that. This is now a new or Mississippi. Are. System that you where. Thank you. And and I encourage the audience as well these got your slide show will put the questions up and I promised last sort of the questions do with the panel as well as weak as we go. I don't understand each review the current situation in your hotel in terms of revenue management system. And what system by using. Why did you choose that want and what benefits do you think that's the big thing ET. So and Rio B senses a fairly big town we have to doubt founded 61 rounds. So there is her very strong cost benefit end. Having an effective revenue management system because of banking increase India back ad dollars by six dollars again have a million. You know following tonight bottom line sell for ads and as the hub there that's big says group we've always used radio it's. N aren't getting commission for saying this. And two things about eight years I think that really step out for a flat first is the had very good system integration. So as one of the first movers in that industry. I think they've done a lot of research in working with about the distribution partners. Still win peace deal works said it integrates well it works. And that's something that's really important factors. If I've read it's wrong. And the second thing about eight years there where it first it's. SN network and the community. That supply ads endless parties feeding Canadians still. The have a very good done. Keen are fat client relationship managers end. And we worked very closely with them. You know revenue management has asked going to be at lake it's kind of only jar you know. Europe you're in a Mattel most would help ugly yards it's one revenue gag dealt with the year analysts. N now it's nice to bounce ideas off somewhere else. And soul I'd years provides that fast one. I enjoyed their objective exchanges don't yet they question our revenue management strategies. Cell doors at there's two reasons Alan. We go without factors that. But we also find debt and the revenue measure system is not enough sold yet she EU was allowed access. My fourteen is train answer adds end use says very active read in preparing cleaning out the out. N in addition to that this year we buy tableau. NB used debt Friday capitalisation because communication NE would influence. On. That physicians only once applied throughout the properties billion I think end. Are nothing V typically slightly. Thank you need. I think it targetted headed and so if you take a look deeper processor technology. I can't look at are each adjusts with. What did you. The EU does influence don't get investments back then you. Are. Prop Russert perspective. He think what the distribution chat. But I. The tap still abuzz olivant when bright white girl system with startups satisfied that the two below supporting the technology. Watching the either for anything while the oil soared to find a write down in aired nurture the great culture. Our offer revenue embedded. And that the I. Do. You. Won it yet whether speed where. Right out of you have the right processors and B have rate. Are. We sources it leads then they get their bid offer you know that that's what you believe that we. I think we believe that fifty bed just put in the system in the field back up its gonna do well that dark horror that let your baby yes. The are actually the prices of you know there with our revenue management system technology for the future. I've a next generation environment. Are Soviet asking what are your options. I still believe should happen is filed for a compact next year. Our current system had the bandages earth are you gonna validly pointed out you'd bandages that make up about the other side whatever its objectives. The disadvantages is that cunard who are. Predictive analytic. Double your client you write that. Guidance without your land weight ample I think I've got beat by 10%. What happened. After whether it's the way forward are not yet not able to do that. United with the right Biden added. Worried about what airline ticket do became allocate capacity into each product back in the right for a paper we were well. Our united would do that Phil if the bay it your best we have agreed more was up 500 dollars it will spot point Cadbury up. Get publicly notably you think they'll get and have worked out but it's up. So they're not a bit Abed it is too hard to having no revenue management system that it be the answer. Obviously they have rug rats that had been meet us assets are up appear there analytics. But with eight years. I'll be by those below the coming. Revenue at the top overdose where. And that I think you've been I think are at will forward in the next month hardly able what. And cubic. And I ask you you're at a group level that foresees that correct yeah do you mandates. This particular system on all your properties and to what extent of the better. Are up by Rahm. What I don't get voters like. Depths against. And earth bearing did the a large if so where every other person that had. Any. But it into greed it for the distribution. But within degraded if you don't have yeah that's I think just. I've said Phil just the insurer that there was no big for anyone go with. If it. So well first it's been readied joining. If they look at the basic benefits. Was the man before tour. Any OPEC you don't have any Imus. Only politics at. So. They would accept this morning which was now on their bad but he basically should limit up over would possess a thing. Prices I was the process laid. Are. We have the added while it and if you have the because you're I think I was one. These of the by the two that the commodity. And L believe this division is set up let me mention. Over payment system metered basic amid bitter. Which basically then you're automatically upbeat people wanted to be too Germans point you know we're better. I'll. That's how we do setup at a off balance of which about whom they knew my ability regions. So yes what people versus I bet. The first map what the processors in its wonders. Would make the payment decision and that they this meeting. That they are. What are you worried that you made the decision. What if the technology that BP is up evaluating that. You know certainly you know who will automatically be reached. If they make it. White speak quite the pop world. But no peace system product placement which we which. Saw that problem. Quite a bit in my my back into believes that we're this big you know the what. So will act aimed betting morsel there a what makes ads but oil processors. And then is technology. So people go off the people then protesters and then you need to pick argue. A stop gap but the had a big lake globe bids for placement. Which is marked is now. Which is marked as analytical look Smith the idea has either systems the market. But what I have had the chance of doing years. In the process so value systems outlook. With the systems. Board zone wants a well the system some systems have a strong bid every location. Are there some power systems will probably were forecast. None of the systems forced off. And exclude forecast I'd be baby. More systems. We're sick with graceful bias which is aware of them might be basically added additive I would you're really into it. The it is gloomy I don't know the there would be a good systems eight hours. You know kicking in cool. Account a lot of really believe today that incoming fake it up. Into a better position our global forecast sent constrain demand. Long thing about. At what hydraulic well systems there's. Dedicating input on who many believe. And bit more research to back up every pages that has given the best example of weather forecast hasn't a bit of its profit might. In sitting before. I'll but it is video and there's somebody did better with. Saw. You in the system that would see. Need to get more of the same effect. Not a system that will stink yea. But I don't think the Earth Day here. Thank you the same question their knee deep do you mandate consistent across all the hotels renewable reversal B have palm. O the yes we man bit us the mob boss well order but the earth sensitive who'll. Yeah look it and then if the overs a property and we have now. The unite does substantiate the over the out of doing as a prop David going to substantially. The past. People who will build on the but we have a plan meant it. Thank you and I see lots of questions coming in about ancillary. And and obviously revenue is not just the boom that. Revenue is what they spend in the bar what they spend in this are and what they spend in the casino. How are you modelling that into your decisions on pricing and how your systems help you do that. The men in particular that first given given the importance that eludes here. I think we so worried things we Dan is sound we need to earn an oil pipeline for the gas value. We looked yet are owned by source marker and by market segment and howled. How profitable each fund. Segment it's tool with the property and debt includes Enzo. Run the casino and we have bodies are densely revenues in its fighter jets within what ten N. We found that there was some trends fund gas us markets there's if specific in how the consumer into the mean revenue unprofitable. The second had balancing revenue it's really about looking at how you can look at price. How you down week kicking. So give your break for example if we take a group Emily sense there is about zones of 2000 attempted. Ender nightly OE keen foreign F and the red dot. Again if you clueless as it stops us from bringing in an adequate pick a few fun my FNN dot said he's a positions that we think through. M looking at optimising the best mix file with help enact investors seem think that you have to do for a hotels and it's looking yet. Why is the natural inclination aftermarket segment in consuming entity revenue. M acquisitions you can actually influence to meet them. Spend more. Conference guests such growth in this room are well known to be great casino. Visitors. What what why is your basically of the sixty dollars a night for this conference. And the Barbie is much hangar. Big. Thank you look at the company had you do that there are. I I think term as borrowers third broaden revenue management is concerned need to stop above that which. One is. Optimising. There are gas whose brain just in view the diabetes iron is well below the spending. And experts did our money at the streets that's one perhaps second aspect is actually being able to optimise. Each revenue stream off a bit. Still for example rooms is why we beverage about our. Phil and we're address board that this. Bit confused about global revenue knows what mean by that. The best when there's about profitability up. Phil wipe them more profitable. Eads bid. Are to that particular arguably. If that our ability are well what did you know. Are I think debate this in a fairly decent job. Of being people can. Denied that the a book that limit the I would accept low open that inured. When the background of the thing I don't have it if you have that without the volume Douglas Betts. Fifty bucks more to. The second aspect of that is that I used by the data that's the symbol to hide you over. Our dug up by the date and that's where. Things like the mining towards a deal which I think is really coming big start analysing. In more bad no other way. I've only met with the still quite it or get help optimise it again I've not use either died. Word pimp ring that are very dependent. The second aspect is that big industrial the worst very booms but that's what. And four of the last eight years if you take a look at all the presentations are by Abbott somewhere the other big products offered about digital out of its heavy debt. You should boost by revenue I'm happy to say putting out what it's. Died update yes. Up away and be bid any higher price that's it sets standards which yeah actually that they were up. Are I think in the next one might think that that benefit measurement people have evolved out of the effort. And our view would establish an hour why worthy investment in this effort that we. Our next step obviously would be globally deployed this. But that went done that bars that seem damp start looking at other ancillary revenue stream press and but N and that's. And the reason for that years. That they're in deep in the previous reservations that that you know. Average beef up pretty much that yup abilities that sold for over that company bought rolling back is to add more would that the buyback that's one way the second way if be able to optimise these bed you have up additional yup demise of the they say the and that's out of the loop. So. Yeah Ford owned Singapore 51 coming out. What are forward parents. This so itself on the shippers on its way into the listed must have a parent. Booby movie about bias early bitter guns burst they'd be. I knew what that's coming up Appleby who file on the long gold and the order of farm first floor upwards. I think broadly they've really mad and start in the design board. So all if you have. Overdone but square feet target. It should start before the would have its bid. By optimisation was on the as we don't have Richard constant basis. In a level belts focus on the list under your management. You know quite strong in what division my analysis. But you use of David popular when will that emitted so. I'm. As of now. Receive who receive it islands oil now. This can't they be have optimised with B diplomat it was a bit you know not. Strong capable browsers are marketing extremely bigoted that they've you saw. Been viewed portal market. The curve ball with some analytics and sometimes behind it and now. Bad at us come out the while square feet I give it funds. Saw our. The answer people who basically spot on the Spitzer now. But in choosing the price of whom are you considering what ancillary that guess is likely to be. It vigorous debate if things were different. Exam. Flowers on the Maldives. Given the 400 god there's just to be blinded by the you don't plant. Of what to do you base and everything really big that you view bit into the will deliver the impact. Our bureau could be as though there is. There stopped to watch what you said that well obviously Kirby much bigger perspective is. You're either that Durban the initial appeal would bear then a second edition the image of saw. I you allege or be used to what they're selling now. Oil unions in. Lake over. Our EU package. The go oh that's gonna everything it. You have a strong London Signet addition bear you're not a pot becoming in Italy will. You gather more of this aren't Reuters. Versus functions bits you're forecasting becomes difficult because the new company with burlesque on top table that that handset. So are obviously the would have a bigger built on pick up to the chose. And girls then you're making a decision so CFO who argue whether they've brought revenue back you know. Thank you and and it. To experience you if you would term. And in your portfolio you've got the number of smaller hotels and the most popular question coming out its. Its revenue management really applicable small hotel a boutique hotels and I think you said some your properties. In your view cancer with know what that are more because the policies as a perspective I would late yes I have is where you. What is the definition offer smaller body would benefits. If you'll. C. About fifty provided loans no. More so the laws and norms that I had been quoted allocation. Then I don't think yeah now they've system as they our investment we do. If you're a if you are paid out in. There's a lot of the Asian. It has a lot of time in demand followed by link it right now even want to buy backs or bed up one made up by the it. If you're oil sigma beta of this better going to be individual images or redeemed not permitted. If committee that you met with this opportunity we. Now. As quality award that's. But that whatever legacy is that you mad dog course doesn't start with Adobe Systems it gets stuck with the latest on at insider make said but it. Definitely needs a staff. Though obviously lots of startups in this space including hosted systems. Targeting this smaller market. Do you with our have a happy at have a view on how you think these systems are going to be shape that small and the market. Army II I think are not. Between mutually raise a point that you know if you fit. Eads which would mean. Only met up this big that the system. We never actually. Remember when. Seven years ago. Page 99. Under the overflowing where they have met with. They add the big board but basically. Justify. 5450000. Dollars off expensive that phantom bids that that. Art but tooby. I had a margin are passed then. So a the adoption. Of our revenue management system I think it's wee bit on why wait for read. Are that they mean girl on what the quality and I think. Are very good parents did every location. I think given have a big impact our revenue that system that out of away. Enough did. Wave and we like it when their dependence structure right. Back in the I don't. Thank you and I'm going to finish with one question the panel. Eight we heard a lot about how systems that changing as what's that there's lots of start ups those new data which you can use. What's the one thing which you would like your system to be able to do which doesn't do today. I think Europe as the keynote presentation from logic yesterday. Kind of like the collaboration piece so my revenue management team is a key. Selling of the DF five has investigating trail. It's now very you know reportedly add these sector. Its gas so I like it can't average. That's something that current system. Collaboration nick. I can view but took rates at an individual well our guest level if optimise the individual gets level than it. I think it's just about dimension will have time for our and the either work what are we doing Europe. Industrial which has sold people the year that. That's month consumer behaviour oriented. It to believe that term. It's just. Greater segmentation. The firm. I think. They're I mentioned yesterday avenue discussing it's been upon them as though. Was in the future mortar further our business. Oh we someone's name it to be a beast on the that is my forecast that we've bits of the dynamic. So well I think addition everything is linked to go down every bit I'll. In better value. What I do what. What the new tool rather than investing is look at our. Distribution more those commands. So a and resolve of the word has been operating its bid. Eurozone eurozone here as instant enough profit. Yes or block big. I would late I don't systems pool. If you view that it saw if you have the most ejection them except in terms I open legends. What place point Apple's coming in. Sort or something apology be vigilant that if they think more importantly debt worth I don't think it. It and I guess that include both on your own travel but also when shopping through your partners by assuming ballad you didn't. And thank her at please join me in thanking the panel loans that's.