Revenue Management: Strategies for High-End Hotels in Sydney

Running head: REVENUE MANAGEMENT
REVENUE MANAGEMENT
Name of the Student
Name of the University
Author Notes

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REVENUE MANAGEMENT
1. Answer to Question 1
The city which has been chosen in this example is Sydney, one of the major cities and
tourist hubs of Australia in the recent times. The city has been chosen in the example as it is
one of the booming tourist destinations in the recent times and has experienced a considerable
increase in the number of tourists coming to the country from the various parts of the world
including the developing nations of China and India (Hu, Blakely & Zhou, 2013). The
country has seen an increased amount of air traffic from the various countries of the world
and the increase rate has been consistent to cross over 5% in the overall market of tourism
(Hu, 2012). The city is one of the best developed city in the world and is the most flourishing
city in the continent of Oceania with a huge native as well as foreign population base. The
revenue and the financial state of the city is one of the most distinguished in the market
which makes it one of the major tourist attractions on a global platform both in terms of
finance and tourism revenue (Griffit & Hayllar, 2014). The city has been an explicit revenue
to the government in terms of tourism making it one of the best examples suited in the
example.
2. Answer to Question 2
The main hotel that is being chosen is Bli Bli House Riverside Retreat while the
competitor hotel that is being chosen for the comparison is Rumba Beach Resort. Both the
two resorts mentioned in the example are high-end 5 star resorts that are one of the major
tourist attractions of the country. Both have their own set of facilities for their guests and
tourists that range from the fully decorated spa rooms to the exclusive suits that are there for
the utmost comfort of their guests and travellers. Both provide utmost luxury to their guests
and be the ultimate hosts with their line of rooms and suits that provide utmost exclusivity to
the people staying there. Both the hotels provide a luxury experience to their clients like

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REVENUE MANAGEMENT
giving them the opportunity to indulge in some of the most exquisite experiences offered and
also to give them the required amount of services that can make them the regular visitors of
the hotel. Both the 5 star properties are exclusive in their own rights and have their own ways
to provide their customers and guests with the best of their capabilities. Bli Bli House
Riverside Retreat is a boutique hotel with an old world charm clubbed into the modern
amenities which has its own set of clients ("Bli Bli House Riverside Retreat | Luxury
Accommodation, Sunshine Coast", 2018). Rumba Beach Resort is a modern resort having
their own set of customers, both of them have enough in common in terms of monetary and
the type of occupancy to be considered as competitors in the example ("Rumba Beach Resort
- Caloundra Holiday Accommodation", 2018).
3. Answer to Question 3
Book Value of a property is defined as the price of the assets owned by the company
subtracted by its liabilities. Expanding the concept, it can be said that book value is the
amount of money that a particular shareholder of a company will receive if the company
winds up their business due to certain reasons after solving the liabilities and putting forward
the assets (Penman & Reggiani, 2013). After doing the required in the calculation process of
the Bli Bli House Riverside Retreat, it has been found that the book figure of the said hotel is
225$ which is way lesser than the original market value of the hotel. The book figures have
been decided by calculating the assets owned by the hotel and the liabilities it has upon itself
and thereafter subtracting the same from the assets amount.
Occupancy forecast is defined as the number of rooms that has been occupied or pre-
booked by the guests at a particular time in a particular hotel (Pan & Yang, 2017). The
occupancy rate of Bli Bli House Riverside Retreat has been calculated by taking into account
the total number of rooms that the hotel has and the number of rooms that have been