SHA531: How to Implement Hotel Revenue Management Effectively

This discussion post examines hotel revenue management within the hospitality industry, specifically addressing how to get started and improve current practices. The author, currently working in the hotel industry, analyzes the effectiveness of existing revenue management techniques and identifies areas for enhancement, such as leveraging technology and leadership. The post highlights the importance of anticipating consumer demand and setting optimal pricing to maximize revenue per available room (RevPAR). It also acknowledges the challenges, including lack of leadership and technological limitations, and suggests solutions to overcome these barriers. References are provided to support the analysis, offering a comprehensive overview of revenue management strategies and their practical application in hotels. The post emphasizes the significance of revenue management in making crucial decisions about what to sell and at what price to drive revenue.

Running Head: Management
0
Revenue management - How do i get started
7/13/2019

Management
1
Currently, I am working in the hotel industry. Revenue management of the hotel industry
is not properly managed as it is the technique through which the income revenue is optimized
from the fixed inventory. To increase the bottom line of the hotel income managing is very
necessary. Yes, the organization currently practices the revenue management and it has improved
the working and income of the hotel. Revenue management is helpful for the hotel industry as it
helps in taking the right decision of what to sell and also drive the hospitality industry to drive
the revenue (Wang and Brennan, 2014).
Revenue management is very essential in the hotels as it ensures that the room should be
selling at the highest price and more revenues can be generated at the time. To achieve the best
financial results it is very essential for the hotel managers to anticipate the demand and then
choose the pricing of the rooms accordingly. Due to the revenue management practices, the hotel
industry has increased its revenues as it helps in predicting the demand of the consumers and
managing the price availability accordingly.
The barriers which the industry is facing are that there was a lack of leadership in the
hotel industry which leads to creating the problem for the company. Due to the lack of
technology in the hotel industry, revenue management cannot be implemented properly (Denizci
Guillet and Mohammed, 2015). The updated technology is required to overcome with that and
proper leadership skills are needed in the individual who can easily manage the incomes in the
hotel industry.

Management
2
References
Denizci Guillet, B., & Mohammed, I. (2015). Revenue management research in hospitality and
tourism: A critical review of current literature and suggestions for future
research. International Journal of Contemporary Hospitality Management, 27(4), 526-
560.
Wang, X. L., & Brennan, R. (2014). A framework for key account management and revenue
management integration. Industrial Marketing Management, 43(7), 1172-1181.