Exploring ‘Revenue per guest’ RevPAG with Agilysys

‘Revenue per guest’ or RevPAG is a far better way to assess total profitability and more importantly, future revenue potential. This is where you can get an edge to grow your hotel profits as well as receive repeat guests.

In an interview with TDM, Tony Marshall, Vice President & Managing Director, Asia Pacific, Agilysys tells us about his success mantra, team motivation, RevPAG, personalisation, and the ability to maintain a single guest profile across all the products with Agilysys.

Travel Daily Media (TDM): What is the mantra for driving sales and operations for Hospitality Technology Companies? Kindly name a few hotels that have adopted your Hospitality Tech solutions in APAC.

Tony Marshall (TM): At Agilysys, our mantra for driving sales and operations is “Customer-Centric Innovation.” We believe in understanding the unique needs of our clients and delivering innovative solutions that enhance guest experiences and streamline operations. In the APAC region, prestigious hotels like Lanson Place, Hong Kong;  Swire Hotels, Hong Kong; Mandarin Oriental, Kuala Lumpur; and Marina Bay Sands, Singapore are some of the esteemed clients who have adopted our hospitality tech solutions.

TDM: How do you keep your team motivated and performing well?

TM: Firstly, we recognise the importance of competitive compensation. We ensure that our salaries are not only competitive but also reflective of the hard work and dedication our employees bring to their roles. This financial stability is a foundational aspect of our commitment to our team.

Beyond monetary compensation, we focus significantly on creating a culture of recognition and empowerment. We understand that everyone’s contribution is vital to our success, especially in these trying times. Regular recognition of efforts through internal communications, spotlight features, and direct acknowledgments from leadership plays a crucial part in keeping morale high. Furthermore, we invest in our employees’ growth and adaptability. Even with tighter budgets, we emphasise the importance of skill enhancement and adaptability.

This includes cross-functional training and enabling our team to take on new challenges within the company. We’re leveraging online platforms and internal mentorship programs to facilitate continuous learning and professional development. Additionally, we maintain open lines of communication. I personally ensure that I am accessible and that our management team regularly engages with staff at all levels to understand their needs and challenges. This open dialogue helps us to adapt our strategies and support mechanisms in real-time, ensuring that our team not only feels heard but also valued. Lastly, we are committed to fostering a supportive and inclusive work environment. This means promoting work-life balance, encouraging flexible work arrangements where possible, and supporting our employees’ wellbeing through various initiatives.

TDM: What is the dynamic definition that you have given to Revenue Per Available Room (RevPARR) to compliment Hospitality Solutions by Agilysys?

TM: Agilysys would argue that RevPAR, while still important, is now an inferior measurement of a hotel’s performance. RevPAR looks at the occupancy rates and profitability of bedrooms but misses the additional revenue that comes from guests spending on other property amenities. In many cases the guest revenue derived from other amenities and services exceeds the room revenue for that guest. Looking at total revenue from the perspective of the guest, so ‘Revenue per guest’ or RevPAG is a far better way to assess total profitability and more importantly, future revenue potential.

There is an analogy with the taxi industry. It was always the case that this industry only ever monetised ‘space’ the space being the drivers cab. Uber came along and started analysing the passenger. What they learnt about the passengers has enabled them to open many additional, and more lucrative revenue streams including food and other transportation methods. The passenger was always where the value would be, it was never the cab. Similarly, the guest is always where the value will be, it isn’t only the room.

TDM: Data driven decisions are the buzzwords when it comes to giving guests the personalised attention to details that brings in the ‘wow’ factor. How does Agilysys provide that kind of data? 

TM: Our view is that the hospitality industry is really only scratching the surface of personalisation. At this stage personalisation is ‘knowing’; knowing your name, knowing some of your preferences, what personalisation isn’t yet doing is ‘predicting’ and this is where we believe the real value of personalisation exists.

Agilysys has been working with a third-party data science firm to study propensity modelling in hospitality. The ability, through data, to grow profitability by offering guests additional services that data suggests they will be very likely to purchase. This modelling, based on a sample of 1,000 guests in a multi-amenity property shows that 10% additional revenue could have been available in a 12-month period from these 1,000 guests.

Critical to this level of personalisation and the ability to, in future, use guest data to predict revenue growth, is a system architecture that is based on a single guest profile. Today most hospitality system providers promote architectures that require multiple profiles of a guest making true personalisation difficult and getting growth value from data and personalisation almost impossible. Uniquely, we believe that Agilysys is the only provider that is designing systems for a data driven future.

TDM: You have been in the APAC market for 10 years now. What kind of exclusive hospitality solutions do you offer that make you stand above competition. What kind of synergy and interconnectivity do your solutions extend?

 TM: Over the past decade, Agilysys has developed a comprehensive suite of over 30+ products that together offer a full hospitality ecosystem. These solutions range from advanced property management systems (PMS) and point-of-sale (POS) systems to inventory and procurement, analytics platforms, and guest engagement tools. What sets us apart is our ability to integrate these diverse products seamlessly, providing hotels with a cohesive and interconnected system.

One of our standout features is the ability to maintain a single guest profile across all our products. This means that guest preferences, history, and interactions are tracked and accessible through every touchpoint, whether at the front desk, restaurant, spa, or through mobile engagement. This level of synergy and interconnectivity allows hotels to deliver highly personalised and consistent guest experiences, improve operational efficiency, and make data-driven decisions that enhance overall performance.

Uniquely, Agilysys is 100% focused on the hospitality industry and has been since inception. We don’t provide solutions to any other industry, hospitality is not a line of business, it is our business. Every developer, every support person around the world, every salesperson, and every employee is 100% committed and dedicated to the industry, in fact many of our employees have worked in hospitality themselves.

We believe that this is our trump card. Prospects and clients can know that we are as 100% committed to their success as we are to our own.

TDM: Are your hospitality solutions a one-time sale or do you offer regular support? For instance, how big a team provides the backend support to the hotel post sales?

 TM: Our hospitality solutions come with comprehensive, ongoing support. We believe in building long-term partnerships with our clients, and our support team is an integral part of this commitment. Post-sales, we offer 24/7 customer support, regular software updates, and dedicated account management.

TDM: What trends do you foresee in hospitality technology in APAC? What new products will you be offering to this market?

 TM: In the APAC region, we anticipate significant growth in AI-driven personalisation, contactless technologies, and enhanced cybersecurity measures. Guests increasingly expect personalised experiences, and hotels are investing in technologies that ensure data security.

Trends in Hospitality Technology:

• AI-Driven Personalisation:AI will enhance guest experiences by managing itineraries and recommending activities.
• Voice-Activated Services:Guests will use voice assistants for room service, thermostat adjustments, and other requests.
• Contactless Experiences:Technologies like mobile check-in, digital keycards, and contactless payments will become standard.
• Enhanced Cybersecurity:Hotels will prioritise robust cybersecurity measures to protect guest information.
• Sustainability Solutions:Guests can monitor their environmental impact and receive rewards for sustainable choices.

New Products for the APAC Market:

• AI-Powered Guest Engagement Tools:To enhance guest interactions and help staff deliver better service.
• Advanced Mobile Check-In/Check-Out Solutions:These solutions will streamline processes for a seamless guest experience.
• A Comprehensive Guest App:This app will integrate AI for itinerary management, personalised recommendations, and voice controls.
• AI in Staff Roles:We will leverage AI to drive automation and efficiencies, allowing staff to focus on exceptional service.