Chapter 21 – Unit Usage/Rotation: The Best Format for Owner Properties

The Posted Revenue with Zero Rated Room usage/rotation format has a lot going for it:

• It is all about room revenue and that is what most concerns owners
• It equally applies to rooms booked individually and those that connect into component suites
• It is compatible with properties that hard-block in advance, those that select units at the time of check-in and those that employ a combination of these procedures
• It offers the ability to take future projected revenue into account, in addition to actual room revenue being posted nightly.
• It accommodates owner/friend-of-owner occupancy comps while distinguishing them from marketing or group production comps

This last point gets to the heart of the design, enabling the property to use substitute room values in lieu of zero rates from owner stays when tracking revenue production. As room selection is based on least revenue generated, this prevents owner occupancy from unfairly diverting bookings from units whose owners have minimized their personal usage. When publicized to owners, this format encourages and rewards those who are most interested in participation in a rental program focused on maximizing revenues and occupancy, as is management.

While we strongly recommend never resetting the usage/rotation tracking values, properties do have the ability to intervene in extenuating circumstances, as well as when on-boarding new units by introducing them in a neutral position. Efficacy can be monitored through use of the Unit Usage Summary report (R-R-4-V-U) sorted by Unit Type.

If you are not using this unit usage/rotation method with your owners today but would like to explore the possibility, SMS can provide documentation on the best practice for converting your system, as well as a detailed explanation of the process for incorporating future usage.

Finally, there is a feature for use with the F4 – Autobook called “Perfect Fit” which works in conjunction with usage rotation to minimize gaps in unit occupancy while opening up availability for longer, multi-night stays. SMS can provide you with a document that describes this process and illustrates why it can be beneficial to every property.

In the next post, we’ll wrap up this topic with a look at how to monitor the efficacy of your rotation program.