Hotel Revenue Management

Revenue Management

WorkShop 1

Module Name: Planning 2011-2012

WS Objective
After attending workshop 1 you should be able to:  Provide examples of market segments and sub segments;  Explain the relation between segmentation and revenue management;  Describe the role of price fencing within revenue management;  Describe various terms & conditions used within revenue management;  Explain the relation between price, purchase conditions & availability;  Explain the factors that influence a price.
RM 2011-12 Lara Tayara 2

Prior Knowledge
Lecture from week 1  Describing different room rate categories and rate inventory  Yield management and economic principles


RevPar, RevPor, yield

RM 2011-12 Lara Tayara

3

Yield, RevPar, RevPor
 

Yield? RevPar?



RevPor?

RM 2011-12 Lara Tayara

4

It would be really simple if all customers were the same

RM 2011-12 Lara Tayara

5

From the Article “What the heck is Revenue Management anyway?”

RM 2011-12 Lara Tayara

6

Last Week Homework

RM 2011-12 Lara Tayara

7

Questions you should be able to answer
1.

Who are your customers? ◦ What do they value and what are they worth to us? How to create differentiated products? ◦ With the help of RM tools What price do we offer for our products? ◦ Taking into consideration: competitive information, conditions, demand
RM 2011-12 Lara Tayara 8

2.

3.

What did you learn?


There are various(sub)segments within hospitality(chapter4) e.g.: holiday,VFR, special events, training, meeting/conference… That segmentation & Revenue Management mutually influence each other(chapter4) special prices& conditions targeting different market segments



Price fencing within revenue management is needed(chapter8) segmentation-> different needs-> conditions-> different price
 

Type of pricing& purchasing conditions (chapter8) e.g.: refund, cancellation fee, advanced purchase
RM 2011-12 Lara Tayara 9