Hospitality Operations and Revenue Management

Hospitality Operations and
Revenue management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1. Explanation of financial contribution that room's revenue producing areas make to the
business unit................................................................................................................................3
2. Demonstration and application of principles of pricing to the room's product and evaluation
of potential benefits of effective practices to profitability..........................................................4
3. Evaluation of methods which are used to optimise profitability as applied to a fixed
capacity inventory, recognizing dynamic growth in related technological developments.........6
4. Explanation of the way in which codes of conduct, legislation and best practice directly
affect accommodation procedures...............................................................................................7
5. Identification of expectations of customers from diverse markets and explanation of the
way in which providers of accommodation meet their needs through effective use of quality
management processes................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Revenue management is that kind of process in order to develop proper Systematic
process which helps in managing all kind of financial activities within an organisation. This
process helps in making business develop security creating sustainable weather in its
development. Industry report the main focus is over analysing the methods that makes room
management possible in relation to the financial contribution done with the net. Further the
report covers about hospitality sector and the hotel taken is Hilton hotel. This is an American
multinational hospitality organization which manages and franchises portfolio of hotels and
resorts. It was established in year 1919 and has its headquarters in London, UK. Also the report
covers about topics based upon financial contribution made through room's revenue, principles
of pricing, evaluating method used for optimising profitability. In the end report covers about
codes of conduct, legislation and best practices with exceptions and diverse markets is been
covered within end of the project.
TASK
1. Explanation of financial contribution that room's revenue producing areas make to the
business unit
Hilton hotels is one of the largest Chains of Hotel practice been keeping services all over
the world and also on various locations. The chain of Hotel 700 hotels operating within different
countries like ireland Germany United Arab Emirates and various other countries. The hotel was
established in the year 1999 and has earned at quarters within United States. Revenue generated
from room has helped hilton Hotel in attaining financial stability. Other explanation has been
given as follows:
 Room rentals: This is one of the most important resource which help in attaining
financial stability. In this revenue is been generated giving rooms over rent just visiting
various locations of the hotel. Such revenue helps in increasing profit and also makes
satisfaction created within the minds of the guest visiting the hotel. Financial revenue is
been generated with the help of attaining payment on time. It contributes to the major part
of the revenue which is been generated by the hotel. In order to make sure that financial
contribution is done latest it is required by the hotel receptionist to understand about
needs of their customers. (Domingo-Carrillo and et. al., 2017). This helps in generating

high revenue in a way that increases popularity of the hotel at global level which helps in
attracting more and more guest that lead over generating high profit.. Contributed
towards a percentage ration approximately 90% that is 1317 million. D This means
making highest financial contribution in relation to revenue of an organisation.
 Meeting room rentals: Bigger hotel provides better facility over meeting rooms of its
clients this makes high profit to be attained. Hilton hotels give services to its customers in
order to conduct official get together. All rooms have been made with wi-fi services and
air conditioner facilities. Further the hotel gives two choices to its clients in relation to
place of meeting first and then delegating second day. This makes financial contribution
within revenue of group.
 Food and beverage sales: It contributes towards making revenue generation possible in
a way that management Hilton hotel has provided with best facilities and relation to
eating and drinking facilities. In this customer attain satisfaction which helps in
generating high revenue. Latest help in enhancing sales in a way that in the year 2018
growth rate of sale was 3.6% which increased from 5.4% in the year 2019. This analysis
makes understand that financial period of 2019 beverages sales at contributed most to the
revenue generation in relation to room rentals within milton hotels
2. Demonstration and application of principles of pricing to the room's product and evaluation of
potential benefits of effective practices to profitability
Pricing principles: These are those principles which helps in setting up of price in
relation to the product and services provided by the hotel to its customers. This has helped hotel
in managing appropriate rate which has helped in managing price range over items provided to
its customer. Further various principles in relation to the Hilton hotel has been explained as
follows:
 Value based principle: Value based principles; truffles focus over various kind of
factors which is required in order to set prices our product and services when was
decision making regarding level which has to be set in order to stay ahead of it customer.
In this structure please be informed related to cost with the help of current price level and
customers ability to pay.Manager of Hilton Hotel through this attains maximum
sustainability within financial sustainability. (González-Serrano and Talón-Ballestero,
2020).