Business Report: Product Distribution & Revenue Management Analysis

This report delves into the critical aspects of revenue management within the hospitality and tourism sectors. It begins with an executive summary outlining the importance of revenue management and then provides a detailed introduction to the role and necessary skills of revenue managers, including analytical, management, and entrepreneurial expertise. The report then explores the primary distribution channels in the tourism and hospitality industries, such as travel operators and travel agencies, discussing their functions and significance. Furthermore, it examines emerging trends in the industry, including the impact of technology and online travel agents. The analysis extends to a case study of Hilton Sydney, proposing strategies like the implementation of a Global Distribution System, leveraging online travel agencies, and utilizing social media to enhance market share. The report also addresses how these strategies should be communicated to stakeholders, including customers, employees, and travel agencies. Finally, the report concludes by summarizing the key findings and emphasizing the importance of skilled revenue managers and effective distribution channels for organizational success.

Running head: PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT REPORT 1
PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT REPORT
Student's Name
University's Name
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Executive summary
This research evaluates revenue management in the Hospitality and Tourism
industries. Revenue management is a crucial aspect to any organization (Suprusr, 2017).
Therefore, the discussion estimates appropriate skills, the two primary distribution channels,
and various trends in tourism and hospitality industries. The discussion will discuss several
strategies and how the stakeholders should implement them.

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Introduction
Recent studies show that revenue strategy plays a significant role in today's world of
business. It the latest profession implemented in the Hospitality and Tourism industries.
However, in the current business world, the directors in these two sectors have seen the
importance of employing skilled revenue managers who are capable of, working with
numbers, understanding financial reports and spreadsheet. Additionally, managers who can
analyse the current financial position of the organization and come up with meaningful
decisions which can increase productivity. Thus, to achieve the set goals and objectives,
revenue managers should possess certain qualities.
One of the crucial skills that a revenue manager should have is analytical skills
Alatorre (2015).Thus, the revenue manager should be capable of analysing numbers,
differentiating data, and coming with up the best decisions. Studies show that revenue
managers play a vital role in hospitality and Tourism revenue management, especially, in
those departments that deals with profits and revenue (LI, 2008). Additionally, analytical
skills should help revenue managers to cope up the challenges that organizations are facing.
Moreover, they should be in positions to provide correct and accurate figures, which are
crucial in day to day running the organizations.
Another essential skill that revenue managers should have is excellent management
skills. Management is a very significant aspect of every organization. The ability of revenue
managers to be able to accomplish the revenue management goal depends on how effective is
there management. Thus, they should possess verbal and written skills for effective
governance to take place. Verbal skills enhance better communication with other managers,
employees and other sectors outside the organization. Written skills enable them to analyse
figures and financial reports, thus make proper decisions basing on those reports and data.

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Finally, revenue managers should also possess entrepreneurial skills. Research shows
that revenue managers in the Hospitality and Tourism industries are responsible for the
financial success of those industries. Therefore, the entrepreneurial expertise will enable them
to know the impact that their decisions may have on the organization, in the current functions
of the organization and the future.
Distribution channels in the Tourism and Hospitality industry
Findings show that a distribution channel is an intermediary whereby good and
services goes through before it reaches the end user. For instance, retailers, wholesalers, and
the internet are good examples of distribution channels. However, in Tourism and
Hospitality, various agencies serve as intermediaries or channels that travel agents go through
before they reach their designated destination (Law et al.,2015) Tourism Distribution
Channel. Retrieved from https://www.slideshare.net/JericelCabrera/tourism-distribution-
channel. Thus, the travel agent, choose a package, from a variety of packages depending on
their preference and choice. Consequently, the intermediaries come in to make a plan, for
transport, hotel rooms and everything that the agent enquires.
Firstly, there is a Travel Operator. Often, the travel agent approaches Travel Operator
to book for a trip. Research shows that the Travel operator is in charge of planning and
organizing the trips six months before the tourist season. Scholars argue that there are two
main tourist seasons. The first season starts in Autumn; that is from November to April and
the other season begins in Spring from May to October ((Law et al.,2015). Tourism
Distribution Channel. Retrieved from https://www.slideshare.net/JericelCabrera/tourism-
distribution-channel. Therefore, the travel agent prepares their package both transport and
accommodation by booking the plane seats and hotel rooms. Finally, they calculate the total
cost of the whole trip and communicate the information to travel agencies or directly to the

PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT REPORT 5
agents. Therefore, the Travel Operator plays a vital role in Tourism and Hospitality
Industries.
Another important intermediary is the Travel Agency. Their primary function is to
distribute the trip to the clients. Generally, clients approach them to their offices, where they
obtain information about the trip. Additionally, they are informed about the travel plans, costs
and any other crucial information provided by the Travel Operator Thakran & Verma (2013).
However, travel agencies can specialize in a particular type of trip. For instance, they can
provide trips such as rock climbing, adventure, space exploration, etc. Additionally, Travel
agencies gain income in two different ways. Firstly, providers such as airline companies and
the hotel pay them. Secondly, they can get some commission from the money paid by the
client. Therefore, these two distribution channels play a significant role in Tourism and
Hospitality industries.
Emerging trends in Tourism and Hospitality Industries
Baporikar (2012) argues that the Hospitality and Tourism industries are growing at a
faster rate all around the globe. These industries provide services to travellers all around the
world. However, these industries are composed of various parts such as transportation
services, tourist lodgings, food staff, and beverage provision and other activities such as
educational trips. Therefore, effective management and distribution of these services should
be enhanced to make these industries productive.
Technology
Technology is one of the significant emerging trends in Tourism and Hospitality
industries Baporikar, (2012). It has enhanced efficiency in revenue management in these two
industries. The innovation of better-computerized system has eased the process of recording

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and accessing financial reports. Also, better communication tools are emerging which
enhance efficiency in Tourism and Hospitality industries. For instance, clients can make
orders faster form any corner of the world through the internet. Furthermore, travel agencies
can distribute their services through the internet, thus increasing their productivity.
Additionally, the revenue manager can easily make better decisions through databases and
other tools.
Another emerging trend is the Online Travel Agents. Recent findings show that these
Online Travel Agents have made several impacts in Tourism and Hospitality industries
(Mohsin et al.2016). For instance, they have altered intermediaries; thus, they are involved
with most activities associated with clients. Secondly, they have eliminated most hospitality
department, by providing their hospitality services to the clients. Also, they have made
stronger relations with clients; thus, those in charge of hospitality have to pay them to get
customers. Subsequently, the hospitality department makes very little profit due to their
availability.
Overview of current strategies if Hilton-Sydney company
Hilton Sydney is one of the hospitality firm located in George Street in Australia. It
provides a wide variety of amenities such as Car parking, Swimming pool and Paid Wi-Fi.
Hilton Sydney has obtained a vast market share globally. A recent survey show that Hilton-
Sydney has more than 3890 hotels in almost 91 countries around the globe. Also, the
company has more than 135, 000 members all around the world (Hu & Gu, 2018). However,
to achieve more significant market share and dominate the world economy, specific strategies
have to be implemented in Hilton- Sydney Hospitality Company. Therefore, as the revenue
manager of this company, I would apply the following strategies:

PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT REPORT 7
Establishment of Global distribution system.
Studies show that this is automated transactions which involves travel service
providers such as hotels and the travel agencies. The GDS will play a significant role in a
large company like Hilton-Sydney (Chen et al, 2016). Thousands of customers will book the
hotel through travel agencies worldwide. Therefore, the Hilton Sydney company will achieve
a more significant market share in the worlds market.
Promotion of Hilton-Sydney through online travel agencies
This is another important strategy that will improve them and increase the
productivity of Hilton-Sydney hospitality company. In the current digital world, most people
book tours through online travel agencies. Therefore, they also need hospitality services
during the journey. Thus, this can give Hilton Sydney a great advantage to attract thousands
of customers. Establishing a long-term relationship with travel agencies is another advantage.
Although using online travel agencies to get customers to attract some commission to the
travel agency; however, during the long-term this strategy can attract a lot of profits and
increase in in company's productivity.
Getting Savvy with social media
Social media is one crucial strategy that can be used in the marketing campaign.
Although Hilton makes use of social media, consequently it used narrowly. Social media
platforms such as Facebook, Instagram, YouTube, Twitter, and Foursquare plays a vital role
in marketing any Organizations. For the case of Hilton Sydney hospitality company, the use
of social media can broadly improve the company productivity. The best thing with social
media is that it supplies the information globally. Hilton Sydney is one of the international
hospitality company that should get customers from every corner of the world.

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Communication of the strategies to Hilton Sydney company stakeholders
Customers.
Customers are the major stakeholders in Hilton Sydney company. They play a
significant role in the sustainability of the company. Thus, they should be aware of the
current strategies in Hilton Sydney company. Therefore, the strategy would be communicated
to customers through advertisements (Paramitha et al.2019). Also, social pages such as blogs
newspaper will be used to express the set strategy to the customers. Since Hilton is an
international company, advertisements and social pages would reach many people worldwide.
Hilton Sydney company employees
Employees are also significant resources in Hilton Sydney company. They are
responsible for providing customer services in the industry. The company set strategies
would be communicated through meetings and memos. Employees should evaluate the
strategy and asses their viability Kapiki (2012). Finally, they should implement the set
strategy to meet the goals and objectives of the Hilton Sydney company.
Travel agencies
Travel agencies have a direct relationship with hospitality industries such as
Hilton Sydney company. They link up with the hospitality companies to ensure that their
customers get the best hospitality services. Hilton Sydney is one of the hospitality industry
that offer customer best services ever. Thus, travel agencies should be aware of the strategies
in the hospitality industry. Therefore, meetings and direct communication with travel
agencies are the suitable methods of communicating the strategy to them.

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Conclusion
In conclusion, this discussion explores revenue management concepts, trends, skills
and strategies in Tourism and hospitality industry more productive. The study began by
explaining in details the idea of revenue management and its impact on the tourism and
hospitality industry. It is evident that these two industries hand in hand to serve tourist and
offer the best services ever.
Furthermore, the paper has explored various qualities that revenue managers should
possess to attain correct and accurate figures. It is evident that the lack of good skills among
the revenue managers leads to misleading information and data, which makes it challenging
to make the right decisions. On the other hand, skilled revenue managers provided accurate
figures and numbers which leap productive results. Therefore, any organization that is willing
to succeed should employ experienced revenue managers, to attain better results.
Moreover, the discussion has gone further and explored various distribution channel
in the tourism and hospitality industry. Two major intermediaries ware discussed, the Travel
operator and the travel agency. Therefore, the two channels work hand in hand to provide
better services to tourist. They plan and calculate the cost, and give a response to the clients
on time. The discussion also evaluates the current strategies and how stakeholders such as
industrialist should implement them to attain the set objectives.

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References
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Appendix