Drive Profitability Through Optimal Revenue Management

Anatolia: An International Journal of Tourism and Hospitality Research, 2015

As a student or professional new to the world of hotel revenue management you will have many questions. Why does it exist, how does it work, what are the tools you’ll need, what does the system look like, how will you make decisions, and how will you measure your success? Hotel Revenue Management: From Theory to Practice takes the reader on a journey to answer these questions. Going beyond a mere description of what it is and why it’s needed, the book provides its readers with a better understanding of the value of your product, your customers, your demand, and how you can use this understanding to drive long term value, all while acting ethically. Hotel revenue management is an effective tool that can be employed to help develop students and practitioners into revenue management professionals.

2017

Hospitality firms are expanding traditional revenue management (RM) practice to focus on customer value and strategic profit management. Participants in series of semi-structured interviews suggested that revenue management is moving away from a sole focus on top-line rooms revenue toward a bottomline orientation focused on the customer. Thus, RM will expand to multiple revenue sources and encompass a multi-channel demand management approach. The interviews with sixteen senior hotel leaders, RM vendors, and solution providers highlighted the importance of profit, rather than just revenue, given rising distribution and variable costs. Despite the attraction of other revenue and profit sources, such as F&B, spas, and function space, the participants noted that expanding RM to those areas involves complexities not found in the rooms division. Ideally, hoteliers seek to assess the value of each customer’s patronage and develop a specific relationship with each customer. With changes env...

Proceedings of the International Conference on Tourism, Gastronomy, and Tourist Destination (ICTGTD 2016), 2017

Hotel Revenue Management is the application of information systems and pricing strategies that sell the right place to the right customers at the right time and in the right time frame. Implementation of hotel revenue management is done through the seven steps that aim to identify and resolve problems arising from Revenue Management. Which stipulates Market segmentation, Availability, Product Differentation, Demand Forecast, Price Management, Overbooking Classes, Reservation Negotiation. This study uses a cross section analysis. Where this approach is a method that describes the state at a given time, ie the state of Average Room Rate,% Occupancy, RevPAR, and TREVPEC. Data mining from the primary data using, among others: conducting interviews to the General Manager, Front Office Manager, and Chief Accounting. The result found several indicators, namely: in February has Room Occupancy, Average Room Rate, TrevPec the lowest compared to other months in the year 2015. the highest value of each indicator, namely: Room Occupancy in November, the Average Room Rate and RevPAR in August, and TrevPec in September. Managerial implications: the application of revenue management will provide better preparation for operational hotel. particularly in facing low occupancy in February to prepare planning in terms of promotion and targeting new segmentation.

This paper explores future directions of revenue management as postulated by leading academicians and the hospitality industry. A comparative content analysis of both the academic literature and professional literature on revenue management published in 2013 is conducted and three pertinent areas of revenue management are presented: people, processes and procedures, and technology. At the end an integrated conclusion and future directions section is provided in which the authors identify the main challenges revenue management will face in future. These challenges include: a need for specialists that can analyse big unstructured data sets; integration of traditional marketing, sales and revenue management departments into one strategic unit; and the need for new types of technologies.

2007

applies economic principles to system variables in order to maximize revenue. The focus of hotel RM, as perceived by most hospitality practitioners and researchers, is room revenue maximization. Available software products do not use any high level information and do not use sophisticated prediction models. In this paper we propose a conceptual RM model that relies on an accurate room demand forecast model and a dynamic room pricing and allocation model. The system also attempts to combine expert knowledge with statistical models to provide a flexible and effective decision support tool for revenue maximization.

Journal of Travel & Tourism Marketing, 2015

Journal of Travel & Tourism Marketing, 2015

2012

Th e paper presents a literature review of the main concepts of hotel revenue management (RM) and current state-of-the-art of its theoretical research. Th e article emphasises on the diff erent directions of hotel RM research and is structured around the elements of the hotel RM system and the stages of RM process. Th e elements of the hotel RM system discussed in the paper include hotel RM centres (room division, F&B, function rooms, spa & fi tness facilities, golf courses, casino and gambling facilities, and other additional services), data and information, the pricing (price discrimination, dynamic pricing, lowest price guarantee) and non-pricing (overbookings, length of stay control, room availability guarantee) RM tools, the RM software, and the RM team. Th e stages of RM process have been identifi ed as goal setting, collection of data and information, data analysis, forecasting, decision making, implementation and monitoring. Additionally, special attention is paid to ethical considerations in RM practice, the connections between RM and customer relationship management, and the legal aspect of RM. Finally, the article outlines future research perspectives and discloses potential evolution of RM in future.

Interfaces, 2013

Under changing market conditions for the hospitality industry, the Carlson Rezidor Hotel Group (CRHG) collaborated with JDA Software Group to use operations research to drive higher revenue for its hoteliers and to stay ahead of the competition. This highly innovative revenue optimization project, Stay Night Automated Pricing (SNAP), started with enterprise demand forecasting across 600 US hotels in 2007. It was followed by a large-scale network optimization solution to dynamically optimize hotel room rates based on price elasticity of demand, competitor rates, availability of remaining inventory, demand forecasts, and business rules. All North American hotels were operational in SNAP by March 2011. Starting from the optimization prototyping results in 2008, CRHG consistently measured a 2–4 percent revenue improvement in compliant hotels over noncompliant ones. To date, compliant hotels have increased revenue by more than $16 million annually. After a successful deployment in the Am...