Revenue Management Report: Hotel Room Pricing and Forecasting

This report delves into revenue management strategies within the hotel sector, focusing on forecasting and pricing. It examines how room rates are determined based on competitor analysis and seasonal demand, incorporating revenue generation from room bookings, conference facilities, and restaurant services. The report utilizes secondary research to build a revenue forecasting model, analyzing the impact of demand on Average Daily Rate (ADR) and occupancy rates. It provides an in-depth analysis of Parramatta hotel, considering factors such as city population and conference room sizes. Furthermore, the report forecasts occupancy rates, compares sales rates with competitors, and highlights the importance of competitive pricing strategies. The report concludes with references to relevant sources, providing a comprehensive overview of revenue management techniques in the hotel industry.

Running head: REVENUE MANAGEMENT
Revenue Management
Name of the student:
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Author’s Note:

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Table of Contents
Answer to question 2.3...............................................................................................................2
Answer to question 2.4...............................................................................................................2
References..................................................................................................................................4

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Answer to question 2.3
The rate of each room has been take based on the competitor’s book value. The price
has been set with view of having seasonal profit in first week of each of each month.
However the hotel has a plan to generate revenue through providing 3 types of services. Such
as from Hotel room booking, conference room booking and restraint service. All the pries
have been forecasted based on the price that are going into the market. A secondary research
work has helped the forecasting to develop a revenue forecasting model. The secondary
research work has helped to identify price for the hotel room. This has been identified that he
on the book has been set on the assumption through analysing the competitor’s rate. With the
rise in demand the price and the forecasted ADR has increased. This has helped to identify
the revenue at a stipulated period depending on increased demand. An everyday book price
has been set depending on the demand for the day. Hence the price fluctuation has been
shown and the forecasted ADR also has shown a fluctuation depending on the demand.
However, all the assumptions are made base on the average pricing at the Parramatta hotel.
The city has been chosen as the city is having 251,311 populations. For each sized conference
a different pricing strategy has been applied. However, the number of person has been
assumed based on the room size. Similarly depending on the market information the
restaurant visitor has been assumed at different amountdepending on the different period.
However the person of visitorsin the restaurant has been assumed(Cvent, 2019).
Answer to question 2.4
The occupancy forecasting has been done based on the Parramatta occupancy rate.
This has been recognized that the Parramatta occupancy rate has estimated at 77.3 % during
the current year 2018 (Statista, 2019). The forecasting has been done based on the visitor’s
assumption and the target of making people occupy the hotel. The 1st week visit assumption
has been made based on the competitors’ information present into the on line resources. The

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forecasted revenue has been recognised through identifying the occupancy rate and the ADR
rate. The average pricing has been observed into the 5 star hotel markets and depending on
the secondary research the pricing has been set (Makemytrip.com, 2019). The occupancy rate
has applied on the visitors which helped the study to acquire on idea of the person that visits
during the high demand period. However the occupancy forecasting has provided total
revenue of $1516.91 during the June 1st week. This generates an average sales rate at 23%
However, the competitor’s sales rate has provided tough challenge but the competitive
pricing strategy helped the company to acquire a decent profit over the year. (Zhang, Chiang
& Liang, 2014). The forecasted average ADR has help to gather average sales rate of the
competitors as well. For the SKYE Hotel Suites Parramatta average sales rate is at 27% and
for the Parkroyal Parramatta the average sales rate is 25%. Depending on the forecasted
Occupancy rate the average sales rate in Meriton Suites Church Street is 19%.

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References
Cvent. (2019). Hotels for Meetings & Conferences in Gold Coast, Australia. Retrieved from
http://www.cvent.com/rfp/gold-coast-australia-meeting-hotels-
93170ccdcbf24a7b9cc6bf7108866232.aspx
Makemytrip.com. (2019). Retrieved from https://www.makemytrip.com/hotels/hotel-details/?
hotelId=4190725563808319&mtkeys=undefined&checkin=04142019&checkout=041
52019&city=SYD&country=AU&mmTags=Sydney%20City-
14571&propType=Hotel&roomStayQualifier=2e0e&searchText=Sydney&starRating
=5&travelType=Family&type=CTY&visitorId=4da8ae3a-c056-47b9-be40-
1da244208b4a
Statista. (2019). Australia - hotel occupancy rates 2018 | Statistic. Retrieved from
https://www.statista.com/statistics/945964/occupancy-rates-hotels-selected-cities-
australia/
Zhang, J., Chiang, W. Y. K., & Liang, L. (2014). Strategic pricing with reference effects in a
competitive supply chain. Omega, 44, 126-135.