HRM302 Revenue Management
Leung Man Tao Marco
This report is going to discuss about the revenue management, and the revenue management do not have a long history, and it only had using in hotel industry about 10 years, the first industry using the revenue management to manage the revenue which is the airline industry. Revenue management is a subject which is helping the organization to keep running in the highest profit. There is a big topic for the revenue management and which is pricing, because if the organizational would like to have the highest profit, the revenue management team has to sell the right room, right customer, at the right ...view middle of the document...
Today, revenue management is becoming a more and more important, most of the organization is already using the revenue management to keep their profit in a high profit margin. More people are studying the revenue management, and there is the new opportunity for jobs. The report is going to discuss about the key terms, importance to hotel revenue management, and the key topics of the revenue management. Then, the report is going to choose two resort to analysis of various pricing policies and method in this two resort. Finally, based on the research, it will discuss the three departments, which is the Rooms, F&B and Spa. These three departments is the earning profit department, so this report will focus on these three departments. Next, it will discuss the key terms.
2.0 Definition all the key terms
The Key Terms In Revenue Management
➢ Revenue Management,
Revenue management, which is also called yield management, and it is really a process for the capacity-restricted industries to increase profitability to analysis the Right inventory, at the Right price and Right time, for the Right Length of stay, through the Right Distribution, to the right customers. (Revenue PPT week 2, 2011)
Occupancy, it means the percentage of the time and how many customers are using the services for the business, in the hotel industry, the reservation department is to control the booking, and do not make the occupancy of the hotel is over 100%. Also, there are calculation to calculate the occupancy; Occupancy% = Rooms Sold/ Rooms Available.
➢ Average Daily Rate
Average Daily Rate, in short form is ADR, it is mostly used for the hospitality industry to calculate the average of the room rental every day, and it is a lodging unit to measure a hotel or motel operating performance
The calculation of ADR is the hotel revenue divided of the number of the rooms sold. (Revenue PPT week 2, 2011)
➢ Revenue Per Available Room
Revenue Per Available Room, for short is the RevPAR, it a ratio used in the hospitality industry to measuring the financial performance, and calculate the hotel’s ADR of the occupancy rate. There are two calculation can calculate the RevPAR, which Is Rooms Revenue / Rooms Available, or ADR x Occupancy%. (Revenue PPT week 2, 2011)
Duration, it is a stride from the sensitivity from the cost of the fixed-earnings investment to a general change in rates of interest, and it expressed a few years. In hotel, duration is in most of the front of house, for example; period of the guest stay, day use, hourly rentals of the meeting rooms, and fixed timings of the F&B outlets for operations. (Revenue PPT week 3, 2011)
Pricing, is a business to set their product or service selling price, and it base on the product or service, and the company’s average cost, and strategic approach. (BusinessDictionary.com, N.D.)
➢ Price Transparency
The Price Transparency which means a...