Revenue Management Strategies in Hospitality: A Case Study of JAZZ CORNER Hotel

Running Head: Revenue 0
THE JACC CORNER HOTEL
Revenue
5/19/2019

Contents
Introduction.................................................................................................................... 2
Revenue Management in Hospitality..................................................................................... 3
Importance of revenue management in the hotel....................................................................3
Need for the revenue management in the hotel......................................................................3
Company Overview.......................................................................................................... 4
Company Revenue management analysis...............................................................................5
Different revenue management tactics used by the company.....................................................5
Provide an interpretation of the ways that these strategies help the organization manage (or maximize)
revenue...................................................................................................................... 7
Recommendation............................................................................................................. 8
Conclusion..................................................................................................................... 9
References................................................................................................................... 10

Introduction
The report is prepared so that the revenue management strategies in the hospitality and the
tourism sector can be analyzed. In this report, the major focus will be done the applications of
the revenue management concepts. In the hospitality and the tourism sector, the revenue
management is very important as the hotels deal with the fixed cost, perishable inventory and the
various level of the demands. The key pricing decisions of the company can be taken by revenue
management (Wang and Brennan, 2014). To maximize the revenue worth in the company
revenue management is very important as it helps in predicting the behavior of the consumer at
the micro market level and also helps in increasing the availability of the product. In this report,
the revenue management of the hotel the JAZZ CORNER will be done and its pricing strategies
are evaluated. In this report, the importance and the need for revenue management in the
hospitality sector will be explained. The report will also explain the different types of revenue
management tactics which are used in the company Jazz Corner.

Revenue Management in Hospitality
Importance of revenue management in the hotel
Revenue management helps the hotels in lowering their cost and increasing their revenue. With
the help of the revenue management strategy, the company can determine the best prices of the
hotel's rooms and sell them to the customers at the best rate. Revenue management is also helpful
to the hotel as it helps in enabling the plan which meets the demands of the customers. The
management of the revenue is helpful for the owners of the hotels as they optimize the
availability of the demand and the price of the rooms so that they can attain good revenue.
Revenue management is the mixture of the two things which are pricing strategies and the yield
management which also helps in increasing the revenue of the hotels (Abrate and Viglia,2016).
Revenue management helps in increasing the value to the company. This strategy of revenue
management is very essential in the hotels in the changing environment and the demands of the
people as it helps in boosting the revenue of the company. It helps the hotels in determining the
best rates to sell the rooms and also optimize the manpower and reduce the overstaffing. A large
number of the guest is get attracted by the revenue management as it ensures the maximal
occupancy to them.
With the help of the data of the revenue management the hotels can increase their marketing
campaign and also do the promotion at the extent level (Altin, et al., 2017). The better decision
can be taken by the revenue management strategy and it also helps in improving the brand name
of the hotel. The bottom line of the hotels can be increased by the proper revenue management
strategy. By evaluating the trends of the sales and forecasting the sales the owner of the hotel
adjust the pricing strategies of the companies so that the revenues can be maximized.
Need for the revenue management in the hotel
Revenue management is very important in the hotels as it helps in increasing the revenue of the
company and also improves the services of the company. Revenue management helps the owners
in determining at what price the room will be sold to the consumers so that the company can
attain high profits (Sahut, et al., 2014). To maximize the revenue growth of the hotels the
revenue management is needed as it helps in predicting consumer behavior. There is a need for
revenue management in the company so that the Right room can be sold to the right person at the
right time with the right price and with the right place. The purpose is to ascertain the perception
of the customers so that the value of the product can be increased and the availability of the
rooms for each customers segment can be done.
The revenue management is also needed in the hotels so that the price of the rooms can be
redefined and the good pricing tactics can be developed. It helps in setting up the higher prices
for the room so that the high profit can be attained and good value can be captured. The revenue
management is also needed as it helps in managing the inventory of the company in a controlled
manner by selecting the best price of the allocating room. In the case of the overbooking of the
rooms, the revenue management helps in increasing the total volume of the sales and not on the
optimization of the customer mix. It is also needed so that market segmentation of the prices can
be done at the proper way and the revenue for the hotels can be earned at the maximize level
(Law, et al., 2014).