Optimizing Revenues and Profits across Distribution Channels: Maxim Revenue Management Solutions and Lexington Services present LexKey™
Chicago, IL 9-June-2003 - Maxim Revenue Management Solutions (Maxim RMS), the global leader in Profit Optimization
and Revenue Management solutions to the hospitality industry, and Lexington Services (Lexington), the largest provider of global hotel
reservations in North America and second largest in the world, today announced a long-term strategic partnership that promises to revolutionize
the hospitality distribution paradigm. The two companies are proud to jointly present: LexKey™ by Maxim, a customized version of Maxim's
web-based Maxim e.FLEX™ system, and the most advanced revenue & profit optimization solution available anywhere
today. LexKey is the only solution that is specifically designed to allow a hotel to optimize Revenues, RevPAR and Profits from all
of their distribution channels.
Announcing the partnership, Kevin Ruhman, Vice-President Business Development-Americas & Client Services for Lexington
said: "There is no denying the fact that today's highly fragmented distribution environment poses hoteliers around the world with many
challenges. Deciding the optimal mix of rates and length-of-stay to accept, for any given arrival day from each distribution channel,
can be a daunting task - price too high and you risk losing the business, price too low and you effectively dilute the revenue and
profit potential of your hotel. Throw in the added complexity of forecasting demand for each channel for each day for an entire year,
for a variety of different price points and for each room type in
your hotel, and suddenly you are faced with an impossibly complex
task. In this increasingly competitive operating environment, only
hotels that are able to successfully address these critical factors
will be able to continue to enhance their profitability year-on-year."
He adds, "At Lexington Services, we are committed to offering
'best-in-class' solutions to all our member hotels. Our extensive
due diligence in this area led us to the conclusion that MaximRMS
was the ideal vendor to deliver such a solution. Their clearly superior
and patented technology and their proven track record in delivering
high-impact revenue management and profit optimization solutions
to the hospitality industry made them the obvious choice. We are
delighted to be entering into this partnership with MaximRMS, and
are confident that in LexKey, we have a solution that far surpasses
the capabilities of any other revenue management system, and that
will immediately deliver tangible, measurable gains at all of our
hotels."
According to Steven A. Gelb, Managing Director of
MaximRMS : "We are very pleased to have been chosen as the
partner of choice by Lexington in this business-critical strategic
initiative. We have been extremely impressed with Lexington's single-minded
dedication to adding value to the revenues and profitability at
each member hotel, which is a fundamental philosophy that we share.
Over the course of the next many years, we look forward to working
hand-in-hand with Lexington to continue to push the Revenue Management
envelope in ensuring that leading-edge, value-enhancing Maxim technology
can be implemented at all Lexington hotels."
Ravneet Bhandari, Senior Vice President-Marketing
for MaximRMS adds: "LexKey marks probably the most significant
milestone in the annals of Distribution Optimization and Revenue
Management for the hospitality industry, and the timing could not
possibly be better. Lexington is the ideal partner for us : A company
with foresight, direction, reach and 'real-world' recognition of
key issues facing the global Hospitality Industry. We believe that
LexKey further solidifies Lexington's well-deserved reputation of
being at the forefront of technology, and a strong guiding force
in shaping the future of Distribution for the Hospitality Industry.
We are honored to be contributing to this new distribution paradigm,
and stand committed to its implementation at the many thousands
of Lexington Hotels around the world."
The Value Proposition: LexKey™ is a solution so powerful
that, upon full implementation and maximum use, a hotel will start
to see results within a short period of time. In addition to putting all this
power at the hotelier's fingertips, LexKey™ is so simple to use that
it needs less than 10 minutes of the hotelier's time each day.
LexKey's design and best-in-class mathematical algorithms
allow it to analyze customer behavior and recognize the price-sensitivity
and profit potential of each distribution channel for every given
arrival day. These trends are then converted into highly sophisticated
demand and revenue forecasts and the patented optimization engine
generates the "perfect" revenue management controls for
each channel: what price to charge on any given day, what room types
to sell, and what lengths-of-stay to accept for each customer purchase.
All of the hotel's high "Net Lifetime Value"
customers are clearly recognized, and the system makes the appropriate
adjustments in its controls to ensure that not only are profits
being optimized, but also that the highest level of customer service
is being delivered. All of these controls are then uploaded directly
to each distribution channel through LexKey's interface with Lexington
Services' central reservations system, allowing all hotels to seamlessly
optimize their inventory and rates in all channels. An easy-to-use,
highly intuitive front-end allows hotels to access their system
from any computer that has a web browser installed.
LexKey™ is available for deployment at all Lexington
member hotels with immediate effect. The system will be on display
at the HITEC show in New Orleans from June 24-26, 2003. Please visit
either MaximRMS at Booth #1328 or Lexington Services at Booth #1302
for more details.
About Lexington Services
Lexington Services is a proven leader in electronic distribution
technology and services to hotels worldwide. Since 1991, Lexington
Services has provided independent hotels, resorts, chains and management
companies the ability to realize their optimal revenue potential
through effective reservation services and product distribution.
Lexington capitalizes on the power of the travel agent global distribution
systems (GDS), Internet Distribution Systems (IDS), Call Center
Services, Booking Engine technology and marketing alliance strengths
to generate, manage and process hotel reservations electronically.
Lexington Services provides electronic distribution solutions using
the latest and most advanced central reservations technology available
in the marketplace. Along with effective technology solutions, Lexington
has distinguished itself as the leader in providing continual consulting
services to its members, advising them on the ever-changing distribution
landscape that is critical to their hotel positioning and representation.
Lexington works with over 3800 hotels encompassing 28 brands in
81 countries, and is headquartered in Dallas/Irving Texas with worldwide
offices or representatives in Germany, the United Kingdom, Australia,
France, Italy and Spain. More information about Lexington is available
at www.lexres.com.
