REVENUE MANAGEMENT (HOTELS)
Results
Considering the figure which data which was collected, it means that revenue management obtained by the business will be used to predict the consumer demands so as to optimize price and inventory available. The main objective here is to optimize the revenue which is to be generated from such an activity. Mostly, the main objective of the business regarding revenue management is considering the value of renting a hotel room so as to obtain sufficient revenue. The result obtained indicates that the management of revenue to be generated entails selling rooms at a relatively low price but not expecting a higher demand for then in the near future.
Success
In the process of gathering information, the main challenge which is encountered during the management of revenue is basically deciding the proactive or the reactive procedures to be used in marketing. Thus, the success of the hotel was achieved through effectively analyzing market information and making necessary adjustments regarding the general distribution of the hotel product to the right client at the right price at the time. Therefore, the concept regarding revenue management is the one which was used in maximizing high demand periods as well as stimulating its demand during the low season so as to avoid cannibalism. Since revenue management for the hotel takes a relatively longer strategic period, the company had an opportunity of taking into consideration all the revenues together with profitability. Thus, the figures indicate that the room was sold at low rates prior to the injection of high demand.
Learning
There are various factors which equally makes the hotel to be relatively suitable for the application of revenue management. This includes; segmentation of the market, selling of the rooms/ products in advance, increase or decrease in its demand, differential pricing of the hotel prices, fixed capacity, and fixed and variable costs. It should be noted that the initial step that I would have taken in managing the revenue collecting exercise would have entailed collecting information, aggravating it, analyzing it, and then forecasting its demand and performance. Once that was done, it would have been easier to make effective decisions which assists in putting them in various channels. What can be noted is that the management of the hotel revenues doesn’t offer the capacity of understanding, anticipating, and having efficient reactions regarding market demand. This then means that I would have put all these factors into considerations so that the business can have the capacity of maximizing revenues.
Marketing performance
On the other hand, the main controlling factors or levers which ought to be taken into consideration by the revenue managers are price, yield, and marketing. Therefore in order to ensure that the hotel performance has been improved, extensive marketing, provision of precious rooms and offering them at an affordable price are the main factors that I could have used to maximize revenues. Regardless of the fact that that is the main theory which exists in various business organizations regarding their competitive edge, ensuring that the management authorities have had a clear picture or market implication about them ultimately could be the ultimate means of understanding the limitations and opportunities to be used to maximize profits.
A graph showing the quarterly performance versus the competitive set
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X-axis
1st quarter 2nd quarter 3rd quarter 4th quarter
Regardless of the activities which are undertaken by the business, increasing, or decreasing prices would be the best strategy to use. The reason for that is because it has the potential of altering the number of booking made by the customers. Considering the quarterly performance of the company, lowering or raising public rates is another means of means of attracting and retaining customers. But in order to avoid any problem which might arise, it is essential to restrict or open the segmentation rates. Marketing, on the other hand, only works in connection to the yield or the prices the business will be offering its products. Thus, in order to be in the position managing these factors, it would have been essential to ensure that the management authority have had the capacity of forecasting the revenues to be received.
