Current Trends in Revenue Management in the Hotel Industry

This presentation discusses the current trends in revenue management in the hotel industry, including the shift towards profit management, the focus on direct hotel bookings, and technology enhancements. It also provides recommendations for maximizing revenue management practices in hotels.

REVENUE
MANAGEMENT

Table of Content
 3.What are the current trends in
revenue management.
 4.Recommendations regarding
maximising practices of revenue
management in the hotel.

3.What are the current trends in revenue
management
 Trends of Revenue management in hotel is
moving very fast.
 This industrial sector is moving and
growing at remarkable pace and further
growth will be seen continuing their course.
 These new revenue trends can be efficiently
used by the hotels for running successfully
maximising its wealth. These are the major
trends being followed in revenue
management
 As the prices of the deluxe rooms are seen
as low as per the case its demand would be
seen as higher. People will be preferring
more of the deluxe rooms.

Shift for profit
management Revenue managers of the
hotels are seeing the shift in
hotel industry is moved
towards profit management.
 Managers are continuously
striving for new strategies and
techniques for increasing
profitability of hotels.
 Managers are using the gross
profits per room as primary
KPI.
 For coping with the shift,
company should focus on

Enhanced focus over direct
hotel booking The revenue managers of the hotel are becoming
aware that for increasing the profitability hotels.
 To be directly available to the customers
eliminating the travel agencies.
 It causes brand recall and the customer loyalty
which brings repeat business to the hotel.
 This provides unique platform to the users and
customers and also reduces the cost of hotels.

Technology enhancement in revenue
management
 Technology empowering the revenue
management system are changing constantly.
 In the present times, ongoing changes are
increasing the presence of automation in the
industry.
 Systems enhanced with automation are more
preferable by the managers instead of the
systems not using them.
 The technological advancements are
increasing the efficiency of managers of
performing the work. .

4. Recommendations regarding maximising
practices of revenue management in the hotel
 Understanding market- For executing a successful revenue management
process or strategy it is seen as imperative that Ritz Hotel should have clear
understanding of its market. This means it must focus on the information
that from where the demand comes and several other factors that may impact
seasonal demand. This helps the company in selling its deluxe rooms as
more and more people are demanding for it.
 Segmentation & price optimisation- Concept in relation to selling right
room to right person at a right price needs for adequately segmenting
customer base. For doing this, Ritz Hotel should determine different kinds of
the customer and thereafter looking at such different segments & evaluating
time period when they opt for booking rooms and the hotel facilities.
 Working closely with the other functional departments- It is very crucial
for the company to attain a close collaboration between several or different
departments of Hotel like marketing and sales.

Contd..
 Forecasting strategies- It acts as the most important aspect of the revenue
management that allows the hotel in anticipating or estimating future revenue
and demand, assisting in making necessary adjustments that are required to be
made. The company should focus on identifying the preferences of the
customers for developing its future strategies with regards to its room
structure by keeping low cost of its suite room and constructing more of
deluxe rooms helps in increasing revenue.
 Embracing SEO- Search engines offers a single largest opportunities for Ritz
Hotel for the purpose of attracting the customers and this in turn makes SEO
as an essential part of the robust management strategies in term of revenue.
The hotel should adopt such practices for promoting its cost and room
structure that is categorised into deluxe, suite, executive rooms etc.
 Choosing right kind of pricing strategy- There are various pricing strategy
and only single strategy would never guarantees success. Therefore, Ritz Hotel
should consider best strategy on the basis of its offerings, its target audience
and strategies employed by its rivalry.

Contd..
 Incentives for the direct bookings- It is critical to cater all the distribution
channels and in meeting or connecting with the customers where they are
been present and not where the hotel desire them to be.
 Emphasizing on the Mobile optimisation- In hotel or hospitality industry,
mobile has seem as becoming one of the major important streams of revenue.
Resulting, any resort or the hotel that operates without having been
prioritised optimisation of mobile resulted as operating already as the distinct
advantage in comparison to their rivalry.
 Working with Freelancing revenue manager- Ritz hotel should appoint a
whole time revenue manager who would helps the company in bringing
expertise, knowledge and experience within the work environment.

REFERENCES
 Abrate, G. and Viglia, G., 2016. Strategic and tactical price
decisions in hotel revenue management. Tourism Management. 55.
pp.123-132.
 Pimentel, V., Aizezikali, A. and Baker, T., 2019. Hotel revenue
management: Benefits of simultaneous overbooking and allocation
problem formulation in price optimization. Computers &
Industrial Engineering. 137. p.106073.
 Masiero, L., Pan, B. and Heo, C. Y., 2016. Asymmetric preference
in hotel room choice and implications on revenue
management. International journal of hospitality management. 56.
pp.18-27.
 Ivanov, S. and Ayas, Ç., 2017. Investigation of the revenue
management practices of accommodation establishments in
Turkey: An exploratory study. Tourism management
perspectives. 22. pp.137-149.

Thank You