BHM302 Report: Revenue Management Analysis of Jazz Corner Hotel

This report provides a comprehensive analysis of revenue management strategies within the hospitality sector, using the JAZZ CORNER Hotel as a case study. It begins with an introduction to revenue management, highlighting its importance and need within the industry. The report then offers an overview of the JAZZ CORNER Hotel, detailing its services and facilities. The core of the report analyzes the company's revenue management tactics, including marketing and branding, yield management, and pricing strategies (forecasting, price per segment, packages, and rate parity). It interprets how these strategies help the organization manage and maximize revenue, supported by academic references. Finally, the report offers recommendations for enhancing revenue management practices, concluding with a summary of the key findings and implications. The report aims to provide insights into the practical application of revenue management concepts in a real-world hospitality setting, making it a valuable resource for students studying revenue management.

Running Head: Revenue 0
The JACC CORNER HOTEL
Revenue
5/19/2019

Contents
Introduction.................................................................................................................................................2
Revenue Management in Hospitality...........................................................................................................3
Importance of revenue management in the hotel.....................................................................................3
Need for the revenue management in the hotel........................................................................................3
Company Overview.....................................................................................................................................4
Company Revenue management analysis....................................................................................................5
Different revenue management tactics used by the company..................................................................5
Provide an interpretation of the ways that these strategies help the organization manage (or maximize)
revenue....................................................................................................................................................7
Recommendation.........................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Introduction
The report is prepared so that the revenue management strategies in the hospitality and the
tourism sector can be analyzed. In this report, the major focus will be done the applications of
the revenue management concepts. In the hospitality and the tourism sector, the revenue
management is very important as the hotels deal with the fixed cost, perishable inventory and the
various level of the demands. The key pricing decisions of the company can be taken by revenue
management (Wang and Brennan, 2014). To maximize the revenue worth in the company
revenue management is very important as it helps in predicting the behavior of the consumer at
the micro market level and also helps in increasing the availability of the product. In this report,
the revenue management of the hotel the JAZZ CORNER will be done and its pricing strategies
are evaluated. In this report, the importance and the need for revenue management in the
hospitality sector will be explained. The report will also explain the different types of revenue
management tactics which are used in the company Jazz Corner.

Revenue Management in Hospitality
Importance of revenue management in the hotel
Revenue management helps the hotels in lowering their cost and increasing their revenue. With
the help of the revenue management strategy, the company can determine the best prices of the
hotel's rooms and sell them to the customers at the best rate. Revenue management is also helpful
to the hotel as it helps in enabling the plan which meets the demands of the customers. The
management of the revenue is helpful for the owners of the hotels as they optimize the
availability of the demand and the price of the rooms so that they can attain good revenue.
Revenue management is the mixture of the two things which are pricing strategies and the yield
management which also helps in increasing the revenue of the hotels (Abrate and Viglia,2016).
Revenue management helps in increasing the value to the company. This strategy of revenue
management is very essential in the hotels in the changing environment and the demands of the
people as it helps in boosting the revenue of the company. It helps the hotels in determining the
best rates to sell the rooms and also optimize the manpower and reduce the overstaffing. A large
number of the guest is get attracted by the revenue management as it ensures the maximal
occupancy to them.
With the help of the data of the revenue management the hotels can increase their marketing
campaign and also do the promotion at the extent level (Altin, et al., 2017). The better decision
can be taken by the revenue management strategy and it also helps in improving the brand name
of the hotel. The bottom line of the hotels can be increased by the proper revenue management
strategy. By evaluating the trends of the sales and forecasting the sales the owner of the hotel
adjust the pricing strategies of the companies so that the revenues can be maximized.
Need for the revenue management in the hotel
Revenue management is very important in the hotels as it helps in increasing the revenue of the
company and also improves the services of the company. Revenue management helps the owners
in determining at what price the room will be sold to the consumers so that the company can
attain high profits (Sahut, et al., 2014). To maximize the revenue growth of the hotels the
revenue management is needed as it helps in predicting consumer behavior. There is a need for
revenue management in the company so that the Right room can be sold to the right person at the
right time with the right price and with the right place. The purpose is to ascertain the perception
of the customers so that the value of the product can be increased and the availability of the
rooms for each customers segment can be done.
The revenue management is also needed in the hotels so that the price of the rooms can be
redefined and the good pricing tactics can be developed. It helps in setting up the higher prices
for the room so that the high profit can be attained and good value can be captured. The revenue
management is also needed as it helps in managing the inventory of the company in a controlled
manner by selecting the best price of the allocating room. In the case of the overbooking of the
rooms, the revenue management helps in increasing the total volume of the sales and not on the

optimization of the customer mix. It is also needed so that market segmentation of the prices can
be done at the proper way and the revenue for the hotels can be earned at the maximize level
(Law, et al., 2014).
Company overview
The JAZZ CORNER hotel is on the largest hotels in Australia where a large number of hotel
rooms is there and they provide the best facilities and services to their customers. The JAZZ
CORNER hotel is situated at 352 William St, Melbourne VIC 3000, Australia. The hotels
provide 24/7 services to their customers and also greet them with good things. The hotels also
provide the cool free stuff too which was very attractable for the customers. The company
provides a fresh and clean room to the customers and washes and dries the whole room without
giving them to the new customers. The rooms also have luxurious guest toilets with full
freshness (Mauri, 2013).
Including this, there are many other facilities which the Jazz Corner hotels provide to their
customers such as the WiFi, air conditioning, espresso machines, selected teas, etc. They also
give the star treatment to their regular customers and make a friendly relationship with them and
also give them facilities like car parking, gaming, entertainment, restaurants, etc. The size of the
hotel room is double the average size of the hotel room. The company also provides the many
offers to their daily customer's range of the hotels starts from the $120 to $500 depending upon
the apartment of the room. The people who visit Melbourne, book their rooms in the JAZZ as
they have the best facility.

Company Revenue management analysis
Different revenue management tactics used by the company
The company Jazz Corner uses different tactics to increase their revenue.
Marketing and branding: As there is high competition in the market so the branding and
marketing tactics help the company Jazz Corner in competition with the other hotels. As the
company has a strong high brand image and they also value their customers which help in
competition with the other hotels (Kimes, 2017). Branding of the hotel is the fundamental way of
providing the services to the customers and also has the USP in the competitor’s line. Revenue
management also helps in connecting within the customers as it helps in doing the marketing at
the extent level. By doing the promotions of the company Jazz Corner the company can target
the campaigns at all the distribution channels. By doing online marketing a large number of the
customers is targeted by the company and they have earned higher revenue.
Yield management: Yield management is the key factor for revenue management. Yield
management is selling any services or the products to the customers at the right time, place and
with the right pack. The process through which the price is determined of the hotel room is
defined as the yield management strategy (Ferguson and Smith, 2014). So the company Jazz
Corner gives the right rate to the right consumer at the right time so that the revenue of the
company can be increased. In yield management, only the price of the company is determined
which are related to the revenues generated through the room charges. Yield management is the
strategy of the variable pricing which maximizes the profit of the company Jazz Corner from the
fixed resources and influences the consumer to do the reservation of the hotels.

Source: hmsilent.com
Pricing strategies: The Company adopts different pricing strategies to increase their revenue
which is described below:
Based on the forecasting: In hotels, the use of the forecasting method of pricing is done so, the
company Jazz Corner also did that and has set their prices on the anticipated demands (Wang, et
al., 2015). The prices of the hotel rooms depending upon the demand of the rooms. By this
pricing strategy of the company can be evaluated when historical data are accurately recorded
and the forecasting can be done upon the room rates, average money spend per room, occupancy
revenue, etc. There is a low demand in the month of January so this pricing strategy helps in
managing the revenue of the company.
Price per segment: The Company Jazz Corner also fixed the prices on the basis of the price per
segment. In this, depending upon the customers the prices are charged for the same services and
products. If the travel agents book several rooms in the hotels then the lower prices are charged
for the room (Erdem and Jiang, 2016). If some large corporate meetings are arranged in the
hotels then the higher prices are charged with them.
Offer a package: The Company Jazz Corner earns the higher revenue from the packages offered
by them. The company offers the package in discounts and gives the concession to their daily
customers so that more bookings can be done. To the older people half rate of discount is offered
so that many bookings can be done by them (Kozlov, 2014).
Source: sojern.com
Rate parity strategy: In this strategy, the company offers the same prices for all similar types of
products across the channels of the distribution whether online or whether offline. So it
maintains the parity in the price and provides the transparency for the customers of the Jazz
Corner. If the customers book the room through any agent also than also they have to pay similar
prices (O'Connell, 2016).

Use of distribution channels: There are different platforms in the company through which the
bookings of the hotels are made. There are many engines of the bookings such as online and
offline through which the booking of the room of the Jazz Corner can be done.
Provide an interpretation of the ways that these strategies help the organization manage
(or maximize) revenue
These strategies stated above are very helpful in the organization in managing the revenues of
the company and increasing the profit of the company. The company using the pricing strategy at
the premium level which helps the company in charging the higher cost for the bookings of the
hotels and then earn the higher revenue (Riasi, et al., 2017). High-quality services are offered to
the customers so that the company can charge the premium rates and value the customers more.
The company Jazz Corner also offers the premium pricing product on the supply of the foods and
beverages which also helps in increasing the revenue of the company.
Source: hvs.com

Recommendation
It is recommended that the company Jazz Corner should also use the pricing for the market
penetration so that a large number of customers can be attracted by the company and more
revenues can be earned by the company. As if low reasonable and medium prices will be charged
than the middle-class people will also avail the services and the company can earn more
revenues (Schuckert et al., 2015). There are the multiple sectors in the company when the pricing
strategies are used so by using the correct pricing strategy a large number of market segments
can be targeted and the demand of the people can be fulfilled.

Conclusion
From the above report, it is concluded that revenue management in the hotels, hospitality and
tourism sector is very important as it helps in increasing the revenue and the productivity of the
company. There is a lot of importance and the need for revenue management in the company
which has clearly explained in this report. Different management tactics are also explained such
as the marketing and branding, yield management and pricing strategies, use of distribution
channel, etc. With the help of the revenue management strategy, the company can determine the
best prices of the hotel's rooms and sell them to the customers at the best rate. The Company Jazz
Corner also fixed the prices on the basis of the price per segment in which the price is similar to
the different channels of distribution.

References
Abrate, G. and Viglia, G., (2016) Strategic and tactical price decisions in hotel revenue
management. Tourism Management, 55, pp.123-132.
Altin, M., Schwartz, Z. and Uysal, M., (2017) “Where you do it” matters: The impact of hotels’
revenue-management implementation strategies on performance. International Journal of
Hospitality Management, 67, pp.46-52.
Denizci Guillet, B. and Mohammed, I., (2015) Revenue management research in hospitality and
tourism: A critical review of current literature and suggestions for future research. International
Journal of Contemporary Hospitality Management, 27(4), pp.526-560.
Erdem, M. and Jiang, L., (2016) An overview of hotel revenue management research and
emerging key patterns in the third millennium. Journal of Hospitality and Tourism
Technology, 7(3), pp.300-312.
Ferguson, M. and Smith, S., (2014) The changing landscape of hotel revenue management and
the role of the hotel revenue manager. Journal of Revenue and Pricing Management, 13(3),
pp.224-232.
Kimes, S.E., (2017) The future of hotel revenue management. Available at:
https://sha.cornell.edu/faculty-research/centers-institutes/chr/research-publications/documents/
sheryl-kimes-future-hotel-revenue-management-2017.pdf (Accessed on: 19 May 2019)
Kozlov, D.A., (2014) Yield management in hotels. CreateSpace, USA.
Law, R., Buhalis, D. and Cobanoglu, C., (2014) Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary Hospitality
Management, 26(5), pp.727-750.
Mauri, A.G., (2013) Hotel revenue management: Principles and practices. London: Pearson
Italia Spa.
O'Connell, D., (2016) Contesting white Australia: Black jazz musicians in a white man's
country. Australian Historical Studies, 47(2), pp.241-258.
Riasi, A., Schwartz, Z., Liu, X. and Li, S., (2017) Revenue management and length-of-stay-
based room pricing. Cornell Hospitality Quarterly, 58(4), pp.393-399.
Sahut, J.M., Hikkerova, L. and Camus, S., (2014) Perceived unfairness of prices resulting from
yield management practices (No. 2014-166).
Schuckert, M., Liu, X. and Law, R., (2015) Hospitality and tourism online reviews: Recent
trends and future directions. Journal of Travel & Tourism Marketing, 32(5), pp.608-621.
Wang, X.L. and Brennan, R., (2014) A framework for key account management and revenue
management integration. Industrial Marketing Management, 43(7), pp.1172-1181.

Wang, X.L., Yoonjoung Heo, C., Schwartz, Z., Legohérel, P. and Specklin, F., (2015) Revenue
management: Progress, challenges, and research prospects. Journal of Travel & Tourism
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