Ms. Maureen Herron

Times Square: heartbeat of New York City and pulse for the DoubleTree Guest Suites conveniently located across the street from the TKTS booth on 47th Street at 7th Avenue. Kevin T. Murnane, general manager of the hotel recently commented about his property’s constant marketing opportunity which drives his revenue management. "How do you deal with the demand that you have for your rooms? It’s so fast paced, just like New York City! I often compare it to a NASCAR race. If you take your eye off the road or your foot off the gas for even a second, the competition will just pass you by!" Murnane inquires, "How do you decide where you will maximize your revenue? You have to be aware of your position in the competitive set and do things to move up into the #1 spot! In doing so, rates have to be relative to the competition’s positioning in the city that never sleeps."

Conversing with Murnane, the questions flowed: "What is the most important thing you do every day relative to how the hotel operates?" To take care of his guests properly, for Murnane, it really comes down to revenue management and revenue maximization. Those practices weren’t in place 21 years ago when Murnane began his association with DoubleTree Hotels. "I’ve worked for DoubleTree for 21 years. Revenue management is the biggest revolution I’ve seen in the hotel industry as far as any one system. It’s had the biggest impact on how we operate and how we manage our assets."

He continues: "It’s interesting how the revenue management discipline was unheard of 10 years ago and where we are now. It’s the most import tool for a General Manager to have available in managing his asset and for our staff to have in operating our hotel."

For Murnane, though, "There’s a balance to maintain: You don’t want the science to be so technological and so cumbersome that no one wants to use it." And human skills are complemented, in some cases by artificial intelligence. Murnane comments that smaller hotels in tertiary markets do not have the profile or staff to accommodate this technology. He says, "They look for software to help them." But large or small, all hotels count on the human element which Murnane notes is essential in looking, deciphering and determining nuances of information available through technology.

Murnane conducts a morning rendezvous of 10 to 30 minutes with his Director of Revenue Management. Three days a week, that meeting is expanded to include the Directors of Marketing, Food and Beverage, and Rooms, all providing input and buy in on changing strategies. Tools on which Murnane rely for their positioning include:

• TravelCLICK/Hotel Flash showing occupancy, average rate and revpar for the hotel versus the competitive set. Murnane says: "This allows us to make adjustments. If we’re good in occupancy, we might need improvement in the average rate. If we’re sold out, we might be #4 or #5 in average rate and selling ourselves short. Comparisons with our competitive set is a useful tool."
• Rubicon’s Market Vision Report provides a view of the GDS System on a daily basis. Murnane uses this software to view his competitors selling rates (Marriott Marquis, Renaissance, W Times Square, Westin, Sheraton, Crowne Plaza). He states: "I go in on a daily basis through the GDS and pull rates that each one of those hotels is selling for 90 days out so I can tell what’s going on in advance . . . i.e., how our rates are positioned against the competitive set.
• Hilton’s proprietary RMS and FMS property revenue system which runs a 365-day cycle as to what the hotel did last year on a day-to-day basis in occupancy and average rate, per market segment. "You look at what you did last year and this gives you a feel as to what you will do in the coming year," Murnane reflects, "I consider what segment to sell; what rate to sell; based on past history and forecasted demand.
• Times Square enjoys occupancies in the 90% range on a daily basis with the exception of Sundays. Murnane admits New York as a whole is in high demand with the current city occupancy percentage in the mid 80’s. How do you increase revenues with that kind of occupancy? Murnane suggests: "You either raise your rate, or change your mix of business to higher-rated segments."

"It’s a good problem to have," he continues. "Our business is very cyclical and we seem to be reaching a peak that has been building since 9/11." 

Add to this fact that the DoubleTree Times Square is an all-suite hotel translates to the demand for more of a premium. Coupled with the slow growth in additional room supply in New York and the current transfer of some properties into condo hotels, there is the simultaneous strength of the growth in European business with the Euro trading strong against the dollar." Murnane goes on: "Europeans are competing for rooms with the domestic traveler. Demand is off the charts and I still don’t think we’ve hit the rate ceiling where the customer starts to push back. The challenge then becomes providing better service and better product to justify the higher rates to our guests. We are fortunate in having just completed a 12 million dollar renovation and consequently don’t have some of the product concerns that some of our competitors might have."

Even the renovation was an exercise in revenue management, a team process executed by hotel owners, management and corporate designers who thoroughly investigated the competition as well as analyzed the needs of the DoubleTree. All suites have a microwave, coffee pot, desk, mini bar, refrigerator, safe, sofa bed in the living room, and outstanding bedding packages. "Extended stay guests like Reuters who are in town for 4 or 5 nights are looking for this," comments Murnane. "No one comes to New York to stay in their hotel room, but they do want to be able to spread out when they come in from a day of shopping, business or tourism activity."

Regarding the bedding upgrade, Murnane asks of the industry: "Why did it take us so long to figure out you have to have a comfortable bed? 100% of DoubleTree Hotels had new bedding installed property-wide in 2005. The DoubleTree Guest Suites at Times Square offers 5 pillows, down comforter and triple sheeting in a upgraded linen package." Murnane concludes this thought: "I’m very impressed with this bedding package and the feedback from our guests is outstanding."

Comfort is guaranteed along with a good night’s sleep in New York’s DoubleTree Guest Suites. This is complimented by the amazing silence inside the hotel. You can’t imagine you’re in Times Square when within the walls of the hotel.
From DoubleTree’s beginnings, Murnane points out the idea was to provide a residential feel for guests, an ambience demanded by today’s traveler for leisure or business. "We don’t want to process guests, but welcome them." Perhaps the hallmark of that welcome is the famed DoubleTree cookie. It, too, is 21 years in existence, the only change being that 1 cookie is now served instead of 2 at check in, but with the added plus that it’s served warm to the touch. Murnane explains a decision was made to provide warming trays behind each front desk in DoubleTree Hotels to keep that inviting sensation.

Warm to the touch, a sense of home—no wonder "the place markets itself".

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