Introduction to Hotel Revenue Management Action Plan

SHA531: Introduction to Hotel Revenue Management
Cornell University School of Hotel Administration
Introduction to Hotel Revenue Management Action Plan
Complete the grid below.
Key Business
Problem(s)
Dealing with the channel distribution costs is one of the
main challenges, which the hotels face in terms of
delivering quality services to the clients and the
customers (Hanks, Cross and Noland 2002). Delays in
responding to the complaints of the customers about
loyalty programs and booking channels compels the
hotel industry personnel to encounter instances of
customer turnover.
Along with this, there is a lack of transparency in terms of
disseminating the information regarding the ways and
means to avail the discounts in the hospitality services.
One of the striking issues in this direction is that the
customers paying more for a service lacks understanding
regarding the difference prevailing between the services
(Kimes 2002). This is against the customer ethics, which
the hotel industry personnel needs to cater to.
Strategies According to the recent business trends, rational pricing
techniques are being adopted by the hotels. Within this,
the customers, insisting for the services at lower rates
are served quality services at lower prices. In this
context, customer segmentation is an essential concept,
which enhances the individual needs, demands and
requirements of the customers (Kimes 2002). Typical
example of this lies in the non-refundable room rates,
which is not the dominant type of rates, as it depends on
the liking of the customers.
Mention can be made of yield management systems,
which have enabled the hotels to encounter
unprecedented growth in the sales revenue (Abrate and
Viglia 2016).
Steps
For implementing the yield management systems,
change management needs to be adopted in the
action plans. Along with this, debates are on regarding
making changes in the reservation policies. Masiero,
Pan and Heo (2016) is of the view that if this is
implemented, Ethical Code of Conduct needs to be
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SHA531: Introduction to Hotel Revenue Management
Cornell University School of Hotel Administration
considered for averting the racial discriminations.
Negotiations is one of the other steps, which needs to
be adopted for enhancing the stability in the
professional relationships between the hotel industry
and the other departmental units (Arenoe, van der
Rest and Kattuman 2015).
Apart from this, calculating relative fixed capacity
would be assistance in terms of generating balance
between the high fixed costs and the low variable
costs. Within this, Zheng and Forgacs (2017) opines
that variations in demand and supply needs to be
considered for delivering quality products to the
customers according to their requirements. For this,
the personnel needs to calculate the price sensitivity,
which would be crucial for valuing the purchasing
power of the customers (Erdem and Jiang 2016).
Timeline 1. What will you (or your team) do in the next
month? I and my team members would indulge in
meeting with the trade union members for gaining
an insight into the latest tax obligations on the
rooms and other services. Along with this, I would
conduct meetings with the finance admins for
disseminating the financial information, which
would be beneficial for developing budgets.
2. What will you have completed over the next
quarter? By the next quarter, we would be able to
implement the yield management systems. This
would be crucial in terms of managing and
controlling the demand, supply and their
variations. This, in turn, would be assistance in
terms of estimating the direction in which the
operations would head to.
eMeasurement/Results Adopting performance management systems can be
effective in controlling the operations. These systems
need to be according to the latest upgradations in the
technological field (El Haddad 2015). In terms of the
yield management, four C strategy would be effective
for enhancing the standards and quality of the
© 2016 eCornell. All rights reserved. All other copyrights, trademarks, trade names, and logos are the sole property of their respective owners.
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