Revenue Management and Competitor Analysis

B09116

Table of Contents
INTRODUCTION...............................................................................................................3
GENERAL EXPERIENCE REFLECTION:........................................................................3
COMPETITOR ANALYSIS:...............................................................................................5
PRICE STRATEGY:..........................................................................................................7
EVALUATING FINANCIAL PERFORMANCE.................................................................10
CONCLUSION.................................................................................................................13
REFERENCES................................................................................................................14

INTRODUCTION
Revenue management is skill to increase revenue for the hotel industry by
identifying optimized rate at which manager should sale its room. Blue City
Heritage Hotel is International's lead image of full-administration lodgings and
resorts. The organization, situated in Bethesda, Maryland, is more than once
remembered for the Forbes rundown of best organizations to work for, and it was
casted a ballot the fourth best organization to work for in the UK by The Times in
2009. As of December 31, 2018, there were 567 lodgings and resorts with
201,366 rooms working under the brand. The main competitors of Blue City
Heritage Hotel taken for doing market penetration study are Complimenti, Nu
Hotel, Paradise Bay Resort Hotel, Riviera Nouveau, The Royal Riverie and The
Three Columns. Two cycle revsim exercise helps in making good strategy for
Blue City Heritage Hotel’s revenue generation. Revsim stands for revenue
simulation; which is strong tool for getting outcomes of different strategies input in
advance. This exercise helped revenue manager know about best combination to
be used for optimized revenue rate. Report consists of various short forms such
as RevPar – Revenue per available room; TRevPar – Total revenue available per
available room; TRevPOR – Total revenue per occupied room and ADR –
Average daily rate.

GENERAL EXPERIENCE REFLECTION:

REVSIM is a business reproduction with center around making sure about
profitable dynamic in a serious market with the goal to arrive at the normal come
back to the proprietors. In light of market data, serious execution and operational
results members settle on choices in promoting and tasks to guarantee a good
GOP and NOP (Talluri and Van Ryzin, 2006). The reproduction reinforces the
members’ aptitudes in deciphering and foreseeing market circumstances and
operational outcomes and converts them to objective situated choices.
The monthly report of various financial indicators such as liquidity and financial
ratios shows how Blue City Heritage Hotel will perform monthly.

 Current ratio: This shows the relationship between current assets and
liabilities; the ideal ratio is 2:1. But hotel shows 9:1; which shows
inefficiency of Blue City Heritage in utilizing its current assets. This high
ratio might be due to excess amount block by debtors, but average
collection period shows; hotel takes only 23 days to receive payment. So
it’s clear that Blue City fails in proper utilization of cash.