Rooms Revenue Management

This project discusses the business plan for setting up a Taj hotel chain in Dubai, focusing on the business climate, hotel chain and category, market segment, room pricing policy, and distribution channel strategy. It highlights the high demand and tourism in Dubai, the competitive set of the Taj hotel chain, the target market segment of high-income individuals, the premium pricing policy for room rates, and the use of various distribution channels for marketing and revenue management.

ROOMS REVENUE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
PART- A.....................................................................................................................................................3
1) Business climate of the hotel location.................................................................................................3
2) Hotel chain and category with the competitive set..............................................................................4
3) Intended market segment.....................................................................................................................4
4) Room pricing policy............................................................................................................................4
5) Distribution channel strategy...............................................................................................................5
CONCLUSION..........................................................................................................................................5
REFERENCES..........................................................................................................................................5

INTRODUCTION
Hotel industry is at boom with the increase in the travelling and holidaying nowadays.
The hotel provides the guest with the accommodation facility, food court and the other amenities
like the entertainment zones etc. This project shall be demonstrating the execution of a business
plan in respect of setting up a Taj hotel chain in Dubai. It shall be highlighting the various
aspects of the developed business plan and associated strategies. The report shall be reflecting
upon the business climate of hotel industry in Dubai and why it has been the preferred location.
Apart from that the category and the competitive set of the Taj hotel chain. Further it shall be
discussing upon the proposed market segment that it intends to enter, room pricing policy and the
distribution channel strategy.
MAIN BODY
PART- A
1) Business climate of the hotel location
The business plan proposed to establish the Taj hotel chain in the location of Dubai is due
to the business climate of the hotel industry in Dubai. Dubai is considered as the rising giant of
the global hotel industry and this is the reason that it is one of the best locations preferred for
setting up a hotel. The high level of demand helps in the revenue management and generating the
future growth prospects for the business (Shao and et.al., 2020). Since the tourism rat is high in
Dubai and because of that it can be evidently noticed that the luxury consumption of the hotels in
comparatively way more than any other prospective location. The past statistics show that Dubai
has one of the highest occupancy rate, highest visitor expenditure, RevPAR is maximum etc.
These are one of the significant reasons for which establishing a hotel chain in Dubai will
be a profitable venture for the entrepreneur. The guests at the hotel fly to Dubai for the various
prospective reasons which are holidaying purpose, business meetings or conferences or either to
meet their relatives, friends and family. Also it can be analyzed that the place has opportunities
for the future growth prospects as well which can be capitalized upon whenever needed to build
competitive edge in the market. So the business climate can be said to be positive as the demand

is high, tourism is high and also it can be assessed that expenditure is high in terms of the luxury
occupancy by the prospective clients of the business.
2) Hotel chain and category with the competitive set
The Taj hotel chain that is established in Dubai in the form of resort hotel category that is
possessing all the other amenities that a vacation destination has and are desired by the guests of
the company (Ingram, 2020). There is high level of competitive pressure on the company that is
catering to the same group of customers and are providing quality services to them to attract the
target lot. Since the services are offered at premium prices so they have to capitalize on quality.
3) Intended market segment
The intended market segment that the Taj hotel chain in Dubai shall be targeting is the
high income class people of the society who prefer the luxurious accommodation facilities and
the other additional amenities and services at their stay. The luxury is highly preferred by the
travelers these days and Dubai is one of highest in respect of the visitor expenditure for the
luxurious services (Lai, 2019). Also the potential customers shall be offered with the customized
products and services that fulfills their needs and expectations in the business.
The hotel must be developed in the way that it is capable of providing extravagant
services to the guests like bar, clubs, playing zone, poolside, lounge etc. The accommodation
facilities should be well maintained and delays must be avoided. These services can be charged
for higher costs which makes it more luxurious and quality oriented (Yeh and et.al., 2021). The
marketing of the products and services that are offered by the hotel must be aggressively
undertaken to position it in the similar way in the minds of its potential customers.
4) Room pricing policy
The company shall be using the premium pricing policy for affixing the cost to accommodation
facilities provided to the guest. The prices shall be ascertained based on the quality of rooms and
the facilities offered to the customers (Ponting, 2020). A base rate shall be prior determined for
the different categories like deluxe, super deluxe and further additional charges shall be applied
on other amenities as opted by the customers. There are different types of rates that can be
applicable to different quota of customers like the rack rate, corporate rate, commercial rate,
group rate, per day use rate, family rate etc.

The room rates also differ in case of premium customers, loyalty card holders, special discount
policies etc. Apart from that it can also be assessed that since the company is targeting the high
income group that is the reason why it is charging premium prices from the customer
(Goryushkina and et.al., 2019). This shall ensure that high quality and secure accommodation is
provided to provide satisfaction to the guest.
5) Distribution channel strategy
The distribution channel strategy should be effectively designed for the hotel so that the
widespread demand of its products and services can be met by the company. It is also significant
in assessing that the services are easily accessible to the potential customers of the business also
boosting their level of satisfaction (The most important online distribution channels, 2021). In
the modern times there are variety of such channels like optimized company website which
facilitates easy booking, check in and check outs without delays or long queues and also provides
the customization of the services. Apart from that the company can use online travelling agents
like Booking.com, Orbitz.com, Make my trip, Expedia etc. These channels have wide reach and
affiliation with them shall be further contributing to the marketing of the products and services.
Another way could be through the global distribution system and the offline travel agents
who also make the travelling and booking process very easy which is why travelers prefer
booking via these channels (Hao, Xiao and Chon, 2020). They book for the air tickets,
accommodation facilities, rental car service and the other amenities that are desired by the
guests. The distribution channels can be successfully applied to the business for managing the
revenues and the future success of the hotel business.
CONCLUSION
It can be summarized from the above project that an appropriate business plan has to be
decided in respect of starting a new business idea. Apart from that the location is the key to the
success of the business and its future profitability. Also it can be ascertained the marketing
strategy and distribution channels must be effectively designed to obtain the desired market
share.

REFERENCES
Shao, M. and et.al., 2020. Prediction of energy consumption in hotel buildings via support vector
machines. Sustainable Cities and Society. 57. p.102128.
Ingram, P. L., 2020. The rise of hotel chains in the United States, 1896-1980. Routledge.
Lai, I. K. W., 2019. Hotel image and reputation on building customer loyalty: An empirical study
in Macau. Journal of Hospitality and Tourism Management. 38. pp.111-121.
Ponting, S. S. A., 2020. Organizational identity change: impacts on hotel leadership and
employee wellbeing. The Service Industries Journal. 40(1-2). pp.6-26.
Goryushkina, N. and et.al., 2019. Theoretical Aspects of entrepreneurial Education for
hospitality Industry. Journal of Environmental Management & Tourism. 10(4 (36)). pp.835-841.
Hao, F., Xiao, Q. and Chon, K., 2020. COVID-19 and China’s hotel industry: Impacts, a disaster
management framework, and post-pandemic agenda. International journal of hospitality
management. 90. p.102636.
Yeh, S. S. and et.al., 2021. Reinterpreting the theory of planned behavior and its application to
green hotel consumption intention. International Journal of Hospitality Management. 94.
p.102827.
Online
The most important online distribution channels. 2021. [Online] Available through: <
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