PDR201: Optimizing Revenue through Distribution and Pricing Models

This report discusses the role and importance of revenue managers in the tourism and hospitality industries, focusing on strategies for optimizing revenue through effective product distribution and pricing models. It examines various distribution channels, including hotel websites and direct booking methods, and analyzes emerging trends such as recognition technology and virtual reality. The report also includes a case analysis of Hilton Hotel Sydney, offering suggestions for leveraging social media and internet resources to enhance business growth. The key to successful revenue management lies in understanding customer behavior, adapting to technological advancements, and making informed decisions regarding physical distribution to maximize financial gains. Desklib offers a wealth of similar solved assignments and study resources for students.

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Running head: Product distribution and revenue management
PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT

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Running head: Product distribution and revenue management
Table of Contents
Introduction................................................................................................................................2
Distribution of channels.............................................................................................................2
Emerging trends.........................................................................................................................3
Assessment 1: Case Analysis.....................................................................................................4
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

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Running head: Product distribution and revenue management
Introduction
Revenue management is based on the interpretation of customer’s behaviour in the financial
segment in the field of the marketing world. One of the major fields related to Revenue
management industry is Tourism and hospitality. The main focus of this assignment is to
concentrate on the abilities of highly successful revenue managers in the successful
marketing world. This will be to understand all the prime focus area of business management
and product distribution. Few skills which add up to these shells are first to have a
competitive nature. One must be sporting enough to take challenges and should get driven by
budgets and should ensure one should achieve them, and then the person should have proper
analytical skills a person should have the ability and should be capable enough to create
reports and detect the changes in trends in revenue world. Last but not the least this is a very
important skill set of a particular leader that is one must be Attentive to details. This is one of
the leadership qualities of a focused revenue manager. One must check the plans and take the
opinion of others to get everything done smoothly without any hassle, double checking the
points and the elements add up payback to these skills also checking the rates and discount
availability when any data should be continuously monitored or not. The following
assignment will deal with all the above-mentioned factors in a better and in-depth manner.
Distribution channels
Nowadays the key points on how to grow as a revenue manager is in general focus. However,
the distribution channel in Tourism and Hospitality Industry does not link itself directly with
it. The different media which are used for tourism and Hospitality development are Internet,
Newspapers, Media, and Banners. In the field of hospitality achieving a high amount of
occupancy and revenue takes considerable research. Although selling rooms is an important
aspect of the reservation department. Without effective planning, rooms cannot be sold.
Rooms might be improperly priced resulting in a huge loss in revenue (Rosson & Ford,
2016). Channels are fragmented into several parts, Direct and Indirect. As mentioned earlier
Hospitality management can be any form or platform via the internet, banners, direct booking
or third-party website. Two types of distribution channels will be explained, one is the hotel's
website and one is Direct (Walk-in & Telephone).
Hotel's Website- This is generally a developed and well-maintained website and is one of the
safest ways to secure and reserve Internet room sale. The reason behind this is monetary.

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Running head: Product distribution and revenue management
When net surfer purchases any room directly, the fees paid on that hotel is eliminated or
reduced on that sale. Nowadays brand and hotels depend on the websites operated by a chain.
This method encourages tourists to book rooms quicker and in an easier way with available
discounts and budget travelling (Shaw, 2016). This is fast and effective and not only that
people come to know about the other deals which take place in the hotel industry. They can
refer there friend and earn cash. It also engages in flight booking with complimentary
breakfast and many more not only that. Websites help to cancel the rooms at one go if clients
are not willing to move forward with a particular trip (Pal & Mishra, 2017). Few of the
examples of hotel websites are Trivago, Trip Advisor and Make my trip which is one of the
leading hotel websites which has made a change in customer's perspective and people has
found this to be more efficient and user-friendly. Search engines in Google also help to find
contents related to website and hotel, travel and site booking (Stangl, Inversini & Schegg,
2016).
Direct (Walk-in & Telephone) – These channels can be considered to be the most
comfortable and fastest way to involve. This method lets the guests and the hotel manager
discuss directly the prices and room availability (Gursoy, 2017). However, telephonic
reservations are considered to be the best as they are free from fees except for the franchise
money and the labour cost. It is also one of the most cost-effective ways. This also includes
the email and customer care service for the chosen industry. People can communicate with
persons and get touch with human voice rather the IVR and get clarity over the phone. This
can include email; chat also so that a written proof stays with the client and they can claim
their refunds for cancellation when necessary (Fountoulaki, Leue & Jung, 2015).
Emerging trends
Trends which focuses nowadays in marketing and hospitality which impacts the revenue and
distribution for the betterment of the future and technology related to the hospitality and
tourism industry are as follows:-
 Recognition Technology – In the Twenty-first century we are more advanced and are
looking forward to growing industry in a better way. This is one of the most emerging

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Running head: Product distribution and revenue management
trends in the current year. And the uses for the hospitality industry make it more
captivating and engrossing. As the biometrics is used to get a seamless authentication
and this can be benefitted in a growing hotel. This can be achieved by comparing a
scanned photo or a frame of video with the person’s face contained within the
database which helps to match up with the facial details and skin textures. This
technology can be also about comparing faces whether the particular face belongs to a
man or a woman, or an age range a person to be in. This process is used in FBI and
law companies which are now becoming a part of hospitality industries Example- if
we imagine a scanned fingerprint or face recognition to unlock rooms and check-ins
and check-outs. An industry can grow in these terms. These technologies are
nowadays found in few developing countries like Bangladesh and Sri-Lanka.
 Virtual reality – This is one of the most effectual and productive trends. More and
more tourism sectors are using hotels websites with 360-degree views image
technology to get a proper allowance of virtual view experience of local hotels, sites
and attraction (Bogicevic, Seo, Kandampully, Liu & Rudd, 2019). In short form, this
is also known as VR. One of the emerging trends in the 2019 business world. Those
who are engaged in hospitality. This new technology has changed a lot with the view
and the concept of old business. Not only it can digitally make a way for the
customers to transport to a hotel and a travel destination, it allows the person to try
before the buying experience (Nayyar, Mahapatra, Le & Suseendran, 2018). People
also come to know what food availability are there in a particular hotel.
Assessment 1: Case Analysis
As a Revenue Manager for Hilton Hotel Sydney my expertise suggestion are one should do is
utilise more and more options related to social media and internet to grow in this field.
Internet is a very vast area where people can grow and media is a good option to spread the
business as clients and customer will be willing to look forward if everything is displayed in
front of them also the guest relation associates should be polite enough to deal with guest so
that they get attracted and choose us always when they look forward to talking business.
People generally hesitate to put their revenue forward toward any hotel industry or choose
any hotel, not only stakeholders but clients, suppliers and customers also stake their revenue

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Running head: Product distribution and revenue management
to continue or start with us a successful business. The main focus of Hilton is to drive
happiness and healthy business so that people around us can trust us for the new technology
and the skills taking place for the new era of tourism and hotel industry. To get the clients
engaged one should be responsible regarding the clarity about the genre of the hotel and how
much beneficial it can be to the clients.
In order to communicate the strategies with the sale and marketing department of the
organization, statement and notice board at common place will be useful. A general meeting
every week would also suffice the acknowledgement of the strategies.
The operation head could be informed about the changes in the strategies by making a formal
memo. It could also be informed in the general meeting that is organised by the management.
Conclusion
We have today covered the part where we discussed the trends and ways to become a
successful revenue manager with high business strategies. The medium and channel to
increase large business health related to direct and indirect channels which are websites,
internet and direct that are via telephonic. Also, the necessary trends discussed to growth
affecting the future. Also discussed how successful revenue managers and leaders should
tackle and deal with the business and the stakeholders in the modern world where clients can
trust them and invest in them. Therefore decisions regarding the physical distribution
products and goods should be always monitored in order to get the revenue in a proper way
with more profit in financial terms than loss. As per channels are considered, They play a
vital role in this management field as the key is hidden in this elements of spreading a huge
business and earning more and more revenue in an effective way by branding and publishing
images.

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Running head: Product distribution and revenue management
References
Bogicevic, V., Seo, S., Kandampully, J. A., Liu, S. Q., & Rudd, N. A. (2019). Virtual reality
presence as a preamble of tourism experience: The role of mental imagery. Tourism
Management, 74, 55-64.
Fountoulaki, P., Leue, M. C., & Jung, T. (2015). Distribution channels for travel and tourism:
The case of Crete. In Information and Communication Technologies in Tourism
2015(pp. 667-680). Springer, Cham.
Gursoy, D. (Ed.). (2017). Routledge handbook of hospitality marketing. Routledge.
Nayyar, A., Mahapatra, B., Le, D., & Suseendran, G. (2018). Virtual Reality (VR) &
Augmented Reality (AR) technologies for tourism and hospitality
industry. International Journal of Engineering & Technology, 7(2.21), 156-160.
Pal, S. K., & Mishra, P. (2017). Portfolio of online distribution channels across mid-market
hotels: an evaluative review. Enlightening Tourism, 7(1).
Rosson, P. J., & Ford, I. D. (2016). Stake, conflict and performance in export marketing
channels. In Proceedings of the 1979 Academy of Marketing Science (AMS) Annual
Conference (pp. 66-69). Springer, Cham.
Shaw, S. (2016). Airline marketing and management. Routledge.
Stangl, B., Inversini, A., & Schegg, R. (2016). Hotels’ dependency on online intermediaries
and their chosen distribution channel portfolios: Three country insights. International
Journal of Hospitality Management, 52, 87-96.