Hotel’s Room Revenue Management Strategy and Key Performance Summary

Hotel’s room revenue management
strategy and key performance summary

Table of Contents
INTRODUCTION...........................................................................................................................3
PART – A........................................................................................................................................3
1.Description of business climate of location..............................................................................3
2. Justification of hotel ‘ chain’ and ‘ category’..........................................................................3
3. Intended market segment.........................................................................................................4
4. Hotel’s proposed rooms pricing policy....................................................................................4
5. Hotel’s proposed distribution channels strategy......................................................................5
CONCLUSION................................................................................................................................5
REFRENCES...................................................................................................................................6

INTRODUCTION
Revenue management strategy can be defined as tactics which is applied to increase revenue
of company (Alrawadieh, Alrawadieh and Cetin, 2021). Le Meridien is hospitality industry and it
is international brand with a European perspective. In report, market segment, hotel’s proposed
pricing policy and distribution channel is described.
PART – A
1.Description of business climate of location
Le Meridien is a well known hotel in United States and there are many growth
opportunities available for organization which will help in earning more revenue. Now,
managers want to expand their business by opening a new branch. They have to face many
problems while opening a new hotel such as, they have to make rules and regulations according
to country and policies should be made which is beneficial for employees as well as
organization. They have to pay tax on income that is earned and they also have to face many
external factors in environment. It includes, political factors, economic factors, technological
factors and many others (Berselli and et.al., 2018). Political factors such as, restrictions on
export, tariff barriers, tax policy, trade barriers and it is managed or controlled by government.
They have to take permission for opening new hotel and make strategies according to need of
customers. Technology is changing rapidly in UK because organizations are using different tools
for promotion so they have to compete with all situation and try to gain competitive advantage.
2. Justification of hotel ‘ chain’ and ‘ category’
Le Meridien is an upper- scale hotel which provides good quality food to its customers and
also provide good services so that they can attract more customers and generate more revenue.
Opening hotel at London street, which is crowded area so it will become easy to attract
customers. Managers are making good marketing strategies to attract more people and this will
increase profit of the organization and help in building good reputation in market. The interior
of hotel is good and it is according to need of customers, they focus people of all age group.
Before opening hotel, managers ahs conducted market survey in which they ask people about
their choices and what type of hotel they want such as interior, food items, price they can pay if
good quality products are provided. It can be justified, because competition is increasing day by
day so it is important to provide good services to customers. After identifying all the things
they make plan to open hotel (Dennis, Cheong and Sun, 2017).