Revenue Management in Travel and Tourism Industry

Running head: REVENUE MANAGEMENT
REVENUE MANAGEMENT
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REVENUE MANAGEMENT
Introduction
The demand for travelling is increasingly growing, owing to the strong global economy.
Due to the global economy as well as the proliferation of technology, the tourism and travel
sector is witnessing continued disruption. The market and industry place is extremely
competitive as there is low barrier to entry. Therefore, it has become crucial for the travel
companies to establish strategies to protect and gain market share in the highly competitive
market. The travel and tourism companies are facing challenges due to the lack of flexibility of
the legacy systems and hence are not able to change to the highly competitive market
environment (Anderson & Han, 2016). There are high level of competition between the
companies and the suppliers, hence impacting the pricing policies and transactions of the
companies (Ballou, 2017). Therefore, the travel companies need to build new strategies and
capabilities on their infrastructure in order to grow the business. The purpose of this report is to
analyze the Travelodge Sydney Martin Place, which is one of the owned brands of hotels in
Australian with the subsidiary of TFE hotels. The report describes the different distribution
channels in the Tourism and hospitality industry, the emerging trends that can impact the
distribution and the revenue management. Further, is discusses on the current strategies adopted
by Travelodge Sydney Martin Place and determines the communication strategy with the
different stakeholders in the organization and concludes the report.
Discussion
1. Strategies for successful revenue managers

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REVENUE MANAGEMENT
In the highly complex business environment, creating the right deal for the customers can
be considered as the foremost important strategy for the revenue managers of the Travel and
Tourism Company. Creating and implementing comprehensive deal management systems help
the revenue managers to address the challenges in the organizations (Ballou, 2017). The
managers can consider the historical based insights which will help them to analyze the needs
and preferences of the customers and hence deal with the popularity. They must consider the
agility in the sales negotiation process along with simulation capability. There can be an
automated process for implementing the comprehensive deals to the clients. The other strategies
that can be adopted by the revenue managers are automating the settlements of the clients, this is
important as it helps to initiate faster and error free transactions (Boyd & Bilegan, 2013). It must
support Multilanguage, invoices and multi currency bills. There must be automated systems for
managing the contracts, calculating the fees and the revenue shares of the company along with
automated alerts for managing the contracts. Further, having dashboards powered by analytics
can be another strategy for the revenue managers (Chiang, Chen & Xu, 2017). They need to
consider various flexible analytic tools and other configurable exports for different levels in the
company. These are some of the strategies that can be adapted by the revenue managers as it can
enable efficiency in the operations of the business.
2. Distribution channels in the Tourism and Hospitality industry
The two most important and widely used distribution channels are the company’s own
website and the use if Online Travel Agents (OTAs). Using the company’s own website as
distribution is considered as the most cost effective marketing tool. The cost of developing the
website and maintain the website is low as compared to the other forms of distribution channels.