Principles of Revenue Management - Doc
Added on 2021-02-20
11 Pages2766 Words133 Views
004 The Hospitality BusinessToolkit
Table of ContentsINTRODUCTION...........................................................................................................................1PART - 1..........................................................................................................................................1Concept of revenue management and principles of revenue management..................................1Application of revenue management tools..................................................................................2Impact of differentiated pricing strategies on revenue management...........................................2Different types of financial statements and reporting mechanism for organization....................3Significance and value of budgets for controlling business performance and identifyingvariances......................................................................................................................................3PART - 2..........................................................................................................................................4Human resource life cycle and various stages of the HR life cycle and their importance inretaining and developing talent....................................................................................................4Performance management plan for travel and tourism job role...................................................5Importance of HR life cycle in relation to strategic talent management and overcoming issuesof staff retention...........................................................................................................................6Recommendations on how HR processes and documents can be improved for effectiveplanning........................................................................................................................................6PART - 3..........................................................................................................................................6Legislations that organizations in travel and tourism industry must adhered..............................6Employment and contract law has potential impact on business decision making in travel andtourism industry...........................................................................................................................6REFERENCES................................................................................................................................9
INTRODUCTIONHospitality business refers to the broad group of customers services which are highlyfocused on customer satisfaction. This includes travel and tourism industry. The business oftravel and tourism is the practice of accommodating, attracting and entertaining tourists in orderto attain profitability. The Project report is based on Thomas Cook Group. This is founded in the year 1841. Itserves hospitality and tourism services to its clients. Therefore, headquarters are situated inLondon, England in United Kingdom. Assignment is divided in three parts first will cover the key principles of revenuemanagement for travel and tourism industry. Furthermore, it explains how to manage budgetsand maintain statistics. Part two is going to highlight human resource's life cycle with context totravel and tourism industry. Lastly, report will assess potential impact of the legal and ethicalconsiderations. PART - 1Concept of revenue management and principles of revenue managementRevenue management consists of application of analytics that determine consumersdemand in order to optimize product availableness and price to exploit revenue growth. It aims atproviding the best services to tourist.Principles of revenue managementMarket segmentation - Thomas Cook group do market segmentation of their hotels byidentifying the factors such as length of stay, total revenue per tourist or per room, daysof weeks stays and booking lead timing. Historical demand and booking patterns - Cook group do analysis of tourist demand anddo deep research on booking patterns of consumers (Lalicic, 2018).Demand forecasting - For purpose of revenue management the demand forecasting usedas an analytical tool by company.Pricing and stock list management - Thomas Cook group is engaged in the practice ofstoring, ordering, trailing and controlling inventories.Overbooking - At the time of overbooking the company goes through cancellationprocedure.1
Informations systems - The use of informations systems in hotels premises makes workeasier and helps to manage revenue.Application of revenue management toolsVarious tools are used by Thomas cook group to enhance their profitability are asfollows- Property management system - This tool makes workflow easier in Thomas Cook group.It simplifies Reception work that leads towards perfect guest experience (Wengel,McIntosh and Cockburn-Wootten, 2019). This offers the best connections with tourist. Booking engine - Thomas Cook group facilitates international reservations to their clientsthrough booking engines (4 key tools for the Revenue Management department, 2018).This alleviate tourists to do online payments without intervention of any human. This alsohelps in currency conversations and translation.Rate shopper - This paves attention towards prices of competitors. It helps to compareprices in real time through various reservations channels. Chanel manager - This efficiently manages the stock on all reservations channels inThomas cook industry. This helps in managing online prices through a single systemwhich modifies in real time. Impact of differentiated pricing strategies on revenue managementThis refers to charging different prices from various customers for particular services intravel and tourism industry which is hospitality. Various pricing strategies used by Thomas Cookgroup on revenue management are as follows -Requiring certain customers characteristics - This pricing strategy is consisted of usingvarious factors such as geographic and demographic location (Mihindukulasooriya,Priyatna and Rico, 2018). It is also based on age or affiliation such as for an instant thehotel rooms prices for AARP members are lower in Thomas Cook Group who agedabove 50 years.Bundled discounting and volume buying - The tourist get discount if they book more thanone hotel room. It is popular in Thomas Cook group at the time of vacations andholidays. Season bundling is popularism among tourists who are coming to spend theirtime with families at peak seasons. They are facilitated with volume buying. 2
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