Hospitality Operations and Revenue Management

Hospitality Operations and Revenue Management

Abstract
In the hotel industry, revenue management is considered essential and this report has included
the analysis of revenue management and operations for the profitability and competitive
advantages. The pricing principles are applied for the success of the organization. The various
approaches are adopted by the organization which helps in determining the cost of the room and
services. In order to optimize the profitability, the methods are evaluated in the report which is
applied for fixed capacity inventory and technological developments. The legislation and
practices are discussed in the report which directly impact on the procedures of accommodation.
In diverse market , the expectation of different customer are identified and accommodation
services are analysed for meeting the needs.
Contents

Introduction.................................................................................................................... 3
Financial contribution....................................................................................................... 3
Pricing principles and its benefits for the Savoy hotel................................................................5
Application of methods for optimizing the profitability..............................................................6
Code of conduct, legislation, and practices.............................................................................. 7
Customer expectations...................................................................................................... 8
Conclusion..................................................................................................................... 9
Reference................................................................................................................. 11

Introduction
Hospitality operations and revenue management are essential for generating profits and revenues.
This report includes the operations and management of The Savoy Hotel in London, UK. This
hotel is a luxurious hotel and it provides the premium quality services for retaining the clients. In
hospitality, revenue management plays an essential role in the profitability and effective growth.
It is essential for providing the food and accommodation services as it help in analyzing the
actual performance and planning for the operations. This report includes the relationship between
revenue management and hospitality operations of The Savoy hotel. In the hospitality industry,
sustainability is considered important for the development and operations which includes the
impact of environment, economic and social. The Savoy hotel is one of the largest well-known
hotels in the UK which provides luxury services by providing facilities of food and
accommodation. This report includes the process of financial contribution in order to manage the
revenue of rooms and capacity of fixed inventory for the development of technology for
improving the quality services. It includes the practices of legislation which impact on the
services of hotels and customer satisfaction values for quality management. This report will help
in understanding the revenue management in the hotel industry.
Financial contribution
In order to generate income, revenue centers are required to be included for selling the products
and services. It is analyzed that the main revenue centers are the rooms divisions and food and
beverages division. The contribution is considered as the concept of accounting which is used for
the profit of the business. It helps in analyzing the capacity of earning profits and liquidity
position of the business which helps the business in generating ideas for improving and
providing better service quality. Financial contribution is considered an approach that helps in
gaining profits and helps in preparing different strategies. It includes the tools of funding and
funding management for development and innovations. It is analyzed that in the Savoy hotel the
effective profitability helps in achieving the long term profitability and competitive advantages.
It is evaluated that inventory issues are faced at the workplace which affects the facilities like
accommodation, food and dealing with customers (Aernoe, et al., 2015). It impacts the costs and