Revenue Management

Revenue
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TAKS 1............................................................................................................................................1
1.1 Discuss the concept and main principles of revenue management in a hotel sector........1
1.2 State the skills, roles and responsibilities of a revenue manager in a hotel......................2
1.3 Review various front office Key Performance Indicators and systems to analyse the use of
effective revenue management...............................................................................................2
TASK 2............................................................................................................................................3
2.1 Describe various factors which need to be taken into account when setting bedroom
tariffs.......................................................................................................................................3
2.2 Evaluate various pricing approaches and tactics appropriate to different types of hotels.4
2.3 Discuss what revenue managers must analyse for successful forecasting and budget setting
for the next year......................................................................................................................5
2.4 List various sales and reservation techniques to maximise (rooms) revenue in the hotel.5
TASK 3............................................................................................................................................6
3.1 Discuss the history and meaning of yield management...................................................6
3.2 Illustrate the steps to implement the practice of yield management................................7
3.3 State the issues a revenue manager faces when implementing yield management..........8
3.4 Describe what a hotel needs to consider when setting an overbooking policy................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Revenue management is considered as application of controlled analytics which predict
consumer behaviour in the marketplace that is of micro level and it will also optimize the
availability of products as well price in order to maximize revenue. In respect of hospitality
industry revenue management is consider as selling of property's perishable inventory at the right
time to the right guest (Afèche, 2013). Organization selected for this report is Premier Inn which
is a private limited company operating at hospitality industry. It is founded by Whitbread in year
1987 and its head office is located at Dunstable, United Kingdom. The main aim of developing
this report is analyse the concept and basic principles of revenue management at hotels and
creating understanding of several factors that need to be consider while making pricing strategy
for hotel bedrooms and room revenue budget. It will also include understanding of methods
which can be implement for practising yield management at hotels.
TAKS 1
1.1 Discuss the concept and main principles of revenue management in a hotel sector.
Hotel revenue management is consider as selling of right room to the appropriate client at
the right moment along with at the right price. This will also include selling of rooms through the
right distribution channel with effective commission ratio. It will also include measurement of
customers through different segments and identify they are willing to pay or not in order to fulfil
supply as well as demand of hotels rooms. The main objectives of applying revenue management
at hotel are conducting better management of resources and protecting turnover of staffs at the
slow period. This also help in ensuring that appropriate numbers of employees are working at the
busiest times. In addition to this principles which are included in revenue management are
Market segmentation, booking patterns & Historical demand, demand forecast & displacement
analysis, overbooking, information system and pricing & inventory management (Principles and
Elements of Effective Hotel Revenue Management, 2019). At hotel industry, revenue
management can be adopted for many ways for example forecasting demand for fixing price.
Such as by adopting revenue management Premier Inn can forecast demand of room and then
accordingly they can fix the price as well as it will also help them in planning for advertising
activities according to booking.
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