Revenue Management Report: Jester Airlines Strategies and Stakeholders

This report delves into the crucial aspects of revenue management within the hospitality sector. It begins by identifying essential skills for revenue managers, emphasizing analytical abilities, open-mindedness, and a comprehensive understanding of the broader impact of decisions. The report then explores two primary distribution channels: direct channels, such as direct bookings through hotel websites and phone calls, and indirect channels, including online travel agencies (OTAs). Furthermore, it examines emerging trends like the increasing use of mobile applications for bookings and feedback, alongside the advancements in automation within revenue management systems. The report also includes an overview of current strategies, specifically focusing on the case of Jester Airlines, and discusses how to communicate these strategies effectively to different stakeholders within the organization, such as employees and creditors. The report concludes by emphasizing the vital role of a revenue manager in driving organizational growth and success, highlighting the importance of specific skills and effective distribution strategies.

Revenue
management
Student details:

Contents
Introduction......................................................................................................................................3
Distribution channels in tourism and hospitality.............................................................................3
Direct channel -............................................................................................................................4
Indirect channel-..........................................................................................................................4
Emerging trends in in tourism and hospitality.................................................................................4
Overview of the current strategies...................................................................................................5
Conclusion.......................................................................................................................................6
Bibliography....................................................................................................................................7

Introduction
Revenue management is very important part of management in a hotel because this department
directly or indirectly affects other departments. The revenue manger is a person who is more
concerned towards developing pricing policies and estimating returns for hotels. Revenue
manger works watchfully with the sales group and managers of the hotel. The revenue managers
works for spas, motels, hotels and resorts. As the work performed by revenue manger is slight
challenging, it is essential to have some special skills.
 Revenue manager should be analytical in nature. Good analytic skills help the revenue
manager in detecting trends, find incongruities and seek opportunities from the data. A
manager should treat data as his best comrade. He should go through the data and make
decisions in accordance to it. The revenue manager should not only analyze the data of
his own company/organization rather he should also be aware of the steps taken by other
organization existing in respective field (Aragon-Correa, Martin-Tapia, & de la Torre-
Ruiz, 2015).
 Revenue manager should be open-minded and should possess the values of welcoming
new changes in the hotel. It completely depends upon the revenue manager how he
handles new changes. Good ideas can come from anywhere to anyone hence, the revenue
manager should speak to new people. The interchange of thoughts helps in understanding
and running the business in a better manner.
 Lastly, the revenue manger should be able to understanding of big picture, which means
he should try to evaluate how a decision may affect others. Thus, it is essential to
understand things on wider notion rather than on individualistic level (Rajan, 2019).
Distribution channels in tourism and hospitality
Distribution channels acts as backbone of the tourism and hospitality sector. The channel of
distribution functions as a link between the clients and service providers. It generates place and
time utilities by traversing the gap between the time and place of construction and consumption.
The channels of distributing leads efficient marketing, this is because the mediators are special

agency of distribution. There are two major channels of distribution- direct channel of
distribution and indirect channel of distribution (Schuckert, Liu, & Law, 2015).
Direct channel -
The direct channel of distribution includes the services, which are provided directly to the
consumers. Marketers, receptionists and sales team falls in the following channels, they serve the
clients directly. For instance, making bookings, getting information about the hotel, availability
of accommodation and other necessary details can be gathered by the consumer by directly
contacting the hotel. Either the consumers can directly make a call to the hotel or they can
contact the hotel with the help of hotel websites. Hotel websites includes every detail about hotel
and its services and provides an idea to the consumer with the help of pictures (Maier, 2012).
Indirect channel-
The indirect channel of distribution includes online travel agencies and third party agents. The
online travel agents act as mediators between the client and hotels. The OTA websites allows the
consumers to book the trips, hotel tickets and travel tickets. These websites not only makes the
travelling and process of booking easier but also provides packages and discount offers to the
consumers. The technological advancement and usage of internet has made OTA more popular
among people. (Wang, 2012).
Emerging trends in in tourism and hospitality
Mobile applications to book and give feedbacks technology has changed the landscape of almost
every sector. The tourism industry do not remained untouched by the influence of mobile
networking and usage of applications. According to the survey conducted by eMarketer, tourism
and travelling applications stands on the seventh position which of most downloaded application.
It is analyzed that around 60% of smartphone users use travelling applications on a regular basis.
These days people preplan their tours, vacations and other visiting beforehand. This reduces the
hustle of looking for an accommodation after reaching (Law, Buhalis, & Cobanoglu, 2014). With
the help of mobile applications, people can make their own travel arrangements. These days
almost every hotel has registered onto the travelling applications like trivago, makemytrip and
goibibo. Apart from hotel, the other hospitality firms like salon, spas, resorts and eatery shops
have either registered to an application where there are large number of similar organizations

available and the user can choose after making comparison or they have their own applications
for both androids and iOs (Nagle & Müller, 2017).
The emerging trend of Automation has brought various changes and transformation in revenue
management system of tourism and hospitality sector. Travel technology and introduction of
automation in hospitality has made the working easier and faster. The hospitality sector is
defined as revolutionary sector for technological advancements (Leung , Law, Van Hoof, &
Buhalis, 2013). Technological advancement has plays substantial role in economic growth of the
respective sector. Easy access to plan travelling and other hospitality services has made the
things convenient for consumers. The boundless use of internet services has enabled everyone to
get detailed information about everything. Unlike earlier, people are not required to stand in long
queues of bookings are appointments. Therefore, it can be stated that automation is time save in
the fast moving world (Ivanov, 2014).
Some of the source of automation includes the usage of computer systems, internet and mobile
communication. For instance, the availability of computers, laptops and other similar devices
have helped the different branches and locations to stay connected with each other and enables
transfer of data and reports quickly and easily. If automation is taken to broader perspective it
has also assisted in maintain security and privacy of the clients (Hayes & Miller, 2011).
Overview of the current strategies
Being a revenue manager of Jester Airlines, in my opinion, the current strategies developed by
Jester are beneficial of its present as well as future growth. The first strategy focuses on
providing good services to consumers by ensuring consumer grade. Along with this Jester is
trying hard to remain in the competition with other airlines. The strategies look forward to earn
revenue per customer instead of focusing on revenue per seat while providing the means of
incorporating operational efficiencies into the business processes. The new strategy developed
will focus on eradicating the competitive influence at the marketplace (HOSPA, 2019).
Stakeholders are group of people who get affected by the actions of the organization, its
objectives, rate of interests and the ratio of revenue earned by the organization. Some examples

of stakeholders are directors, creditors, employees of the organization, suppliers, member of
union and the community in which the industry draws its assets. Herein, the strategies developed
by the organization are introduced to in front of two different stakeholders of the Jester.
Employees of the organization and creditors are two stakeholders with whom the
strategies are discussed. It becomes essential for the revenue manager to that the employees
working in the Jester should be aware of the strategic policies of the company. The employees
should be articulated that in order to defeat our rivalry companies strategies are developed to
enhance the productivity of the company. These policies will be functioning in favor of both the
employees and Jester itself. Along with the employees, the creditors are also introduced to the
policies. Assurance should be provided to the creditors that money be safely invested in the
organizations. New formulated policies will help in increasing the returns of the organization.
Hence, the Jester will be counting more profits than before (Tsiotsou & Goldsmith, 2012).
Conclusion
As per the study conducted, the report above gives a conclusion that the role of a revenue
manager is very essential for the growth of an organization. He holds a close relationship with
the workers and somehow this department is related to all other departments of the organization.
Thus in order to manage things properly, revenue manager is required to have some specific
skills and qualities i.e. good analyzing skills, understanding the things on broader perspective
and most important open-mindedness. The two different distribution channels of tourism and
hospitality have helped in providing services smoothly. With the help of direct channel the
clients can directly approach the hotel or resort whereas the indirect modes like OTA websites
plans trips for people easily. Lastly, the report gives an overview to the report made on Jester
Airlines. Its revenue manager presents the justification of strategies developed by jester. The
strategies are introduces to different stakeholders of the company as well.

Bibliography
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Jersey: John Wiley & Sons.
HOSPA. (2019, August 22). Revenue Management. Retrieved from The Hospitality
Professionals Association: https://www.hospa.org/en/
Ivanov, S. (2014). Hotel revenue management: From theory to practice. Bulgaria: Zangado.
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Leung , D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and
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Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
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Schuckert, M., Liu, X., & Law, R. (2015). Hospitality and tourism online reviews: Recent trends
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