Hospitality Operations and Revenue Management

HOSPITALITY OPERATIONS
AND REVENUE MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
TASKS.............................................................................................................................................1
1. Financial contribution through room’s income generated areas to organisation unit........1
2.Demonstration and implementation of pricing to the room’s product................................2
3. Approaches utilised to optimised profitability to a fixed capacity inventory with
technological advancement....................................................................................................3
4. Code of conduct and legislations with best practices directly impact to accommodation
procedure................................................................................................................................7
5. Expectations of customer form various market and use of quality management to meet
requirements of customers......................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Revenue Management, 2019. [online]. Available through
<https://www.managementservices.hilton.com/en/support-services/revenue-management/>......10

INTRODUCTION
Hospitality industry is a wide-ranging sector engaged throughout providing hotel services,
digital marketing, leisure, etc. that produces high return through customers (Bertsimas and
Vayanos, 2017). Hilton Hotel group is selected in his research report to evaluate income
collection as well as categorization. This study discusses numerous laws and economic variables
introduced in sector. This document covers different aspects of the hotel region, the contribution
of a room services to the aggregate hotel profits is discussed including pricing concepts that
assist to allocate rates to various hotel rooms as well as facilities.
TASKS
1. Financial contribution through room’s income generated areas to organisation unit
Wi-Fi facility: throughout the resort grounds allows a visitor use online services, on which
the company pays a significant charge of sum (Mariani, 2016). The product is launched in 2005
for both the comfort and pleasure of guests in the Hotel Hilton, in Hamshire, United Kingdom. It
is also contributing to a total income of the space, which is 5%.
Swimming pool – Due to various its efficient programs, pool services are the Hilton
hotel most valued and then utilised product. As a lower cost operation, the service makes a
ludicrously low donation, that is 10%.
Sports area – Sports field is a special area in resort grounds that visitors are provided with
different fitness as well as other sports gear so that they have the privilege of working out when
on holiday or business vacations (Misiko, 2015). Several of the facilities in this region are
gymnasium, meditation area or different areas for both indoors and activities. The leisure field
contributes about 10%
Spa services – Many Hilton Hotels provide wellness facilities where visitors can enjoy
calming treatments such as messaging and spa facilities. Such facilities add a fair share of the
revenue per room, which is 15%. Hilton Hotel's room add approximately 80 percent to the
general business income, the remainder contribution is produced by adding to guest amenities
such as pull-up services, taxi services, etc.
Room service – Continental breakfast is a home maintenance facility where restaurant
staff are assigned to make the room. The service includes numerous services such as house-
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maintenance, planting, washing of rooms as well as other maintenance. This service comprises
5% of the total income from either the room.
Room facility – Room facilities–Hilton Hotel provides its guests various room choices
such as regular quarters, luxury rooms, double or triple accommodation rooms, suites,
customized wedding lounges, mansions and individually reserved cottages. The median income
per single bedroom occupation is $5,000 a month. Room division produces about 15 percent of
the profit from the space. The price of these hotels varies from either the size of the room and
their place, while the revenues generated from either the United Kingdom and Us hotel is
comparatively higher than that of the revenue earned from Asian tourists.
Entertainment area – Entertainment area is a separate area which is build and managed
for entertainment purposes. Facilities provided in this area are Television, music system, chat
room, indoor sports spacing etc. Similar to sports area, these services also contribute 10% in the
total revenue.
Breakfast and other meals – Breakfast and other meals–The Hilton Hotel brand is rated
as a 5-star hotel with main objectives of profit maximization and rewarding customers. Hilton
Hotel offers all food options that were recognized and don't include in hotel prices. it have shops
and restaurants used among guests and other tourists. Hilton provides its guests with many diet
plans such as MAP program, AP intend, CMP intend. The MAP plan involves lunch and another
meal, the AP Plan includes only lunch and lunch and dinner contains CMP and regional gym
membership. Generally, the fresh produce system produces the highest income compared to total
space profits, which is 30%.
2.Demonstration and implementation of pricing to the room’s product
Choosing the best prices which benefits both companies and customers is very crucial as
the profitability is very much dependent on what kind of pricing a hotel has set on their rooms.
The largest revenues in a hotel comes through its room division segment as the first reason for
anybody to stay in a hotel is getting the accommodation (Scholz and Voracek, 2016). So,
selecting the best pricing strategies for the rooms and evaluating their actual benefits for the
organization's financial health is must.
Charging very less prices and charging extremely high is not the solution, hotels has to balance
the continuum of the prices. There are three basic strategies which are usually used in the hotel
industry:
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