HAT301A Revenue Management: Scenario Analysis & Recommendations

This assignment focuses on revenue management within a hotel setting, requiring a scenario-based analysis of pricing strategies, occupancy forecasts, and competitive benchmarking. The student acts as a newly hired revenue manager tasked with optimizing revenue for a refurbished hotel aiming to transition from a 4-star to a 5-star rating. The analysis includes identifying fluctuating rates during specific weeks, creating a revenue grid based on occupancy and pricing assumptions, comparing the hotel's rates with those of competitors, and forecasting average rates based on revenue projections. The document provides calculations, assumptions, and references relevant to revenue management principles within the hospitality industry. Desklib provides a platform to access this and similar documents.

Running head: REVENUE MANAGEMENT
Revenue Management
Name of the Student:
Name of the University:
Authors Note:

1
REVENUE MANAGEMENT
Contents
Part 1:...............................................................................................................................................2
Part 2:...............................................................................................................................................2
Part 2.2:........................................................................................................................................6
Part 2.3:........................................................................................................................................7
Part 2.4:........................................................................................................................................7
Part 3:...............................................................................................................................................7
References:....................................................................................................................................10

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REVENUE MANAGEMENT
Part 1:
Three weeks in three months where the rates swill fluctuate are last week of November, Last
week of December and First week of January (Burns & Dewhurst, 2016).
Part 2:
Revenue grid is provided below:
November December January
1,400,000.00
1,450,000.00
1,500,000.00
1,550,000.00
1,600,000.00
1,650,000.00
1,700,000.00
1,750,000.00
1,800,000.00
Total rent revenue
The above revenue grid has been prepared as per the following assumptions.
Revenue grid
November
Particulars Amount ($) Amount ($)

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REVENUE MANAGEMENT
Room rent per night in first three weeks of
November 400.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 0.60
Revenue from rent in the first three weeks 1,008,
000.00
Room rent per night in last week of November
500.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 0.80
Revenue from rent in the first three weeks 560,
000.00
Total rent 1,568,
000.00

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REVENUE MANAGEMENT
December
Particulars Amount ($) Amount ($)
Room rent per night in first three weeks of
December 400.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 0.65
Revenue from rent in the first three weeks 1,092,
000.00
Room rent per night in last week of November
500.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 1.00
Revenue from rent in the last week of December 700,
000.00

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REVENUE MANAGEMENT
Total rent 1,792,
000.00
January
Particulars Amount ($) Amount ($)
Room rent per night in first week of January
550.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 1.00
Revenue from rent in the first three weeks 770,
000.00
Room rent per night in last three weeks of January
450.00
Number of rooms available in the hotel
200.00
% of room occupied on an average in first three
months 0.75

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REVENUE MANAGEMENT
Revenue from rent in the first three weeks 1,417,
500.00
Total rent 2,187,
500.00
Part 2.2:
The rate of competitors are provided below:
Competitors Room rent per night ($)
The Hyatt 700 per night
The Residency 550 per night
The pioneer 500 per night
Part 2.3:
It has been assumed that the rent per night for the concerned five star hotel in Australia is lowest
compared to the rates of above competitors (Hesselbarth & Schaltegger, 2014).
Part 2.4:
Occupancy forecast is as following:
Months Occupancy rate
November
First three weeks 60%

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REVENUE MANAGEMENT
Last week 80%
December
First three weeks 65%
Last week 100%
January
First week 100%
Last three week 75%
Part 3:
Forecasted average rate for each night in the three weeks.
Particulars Amount ($)
Revenue from rent in the first three weeks 560,000
.00
Revenue from rent in the last week of
December
700,000
.00
Revenue from rent in the first week 770,000
.00

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REVENUE MANAGEMENT
Total rent 2,030,000
.00
Total number of days
Average number 20
0.00
Maximum number of days 21 days
Total night counts (200 x 90) 4,20
0.00
Forecasted average rate (2030000/18000) $4
83.33
Thus, forecasted average rate for each night in the three weeks is $483.33.

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REVENUE MANAGEMENT
References:
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan
International Higher Education.
Hesselbarth, C., & Schaltegger, S. (2014). Educating change agents for sustainability–learnings
from the first sustainability management master of business administration. Journal of
cleaner production, 62, 24-36.