Overbooking
07/01/13 | | | | | | | | | | | | | | OverbookingSpecialization project-Hotel | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Supervisor: Mette Kondrup | | Class: 3 søk G | | Name: Bianca Bara | Signature: |
Contents 1. Introduction 2 2. Problem Statement 3 3. Problem formulation 3 4. Delimitations 3 5. Methodology 4 6. Analysis 5
6.1 PEST Model 5 6.1.1 Political environment 5 6.1.2 Economical environment 7 6.1.3 Socio-cultural environment 7 6.1.4 Technological environment 10
6.2 Customer perception towards fairness/unfairness- analysis 11
6.3 The overbooking process 13 7. Suggested solutions 14
7.1 Advance planning 14
7.2 Ask for volunteers 14
7.3 Appropriate compensation 15
7.4 Training the employees 15
7.5 Policies 17 8. Consequences of the suggestions 18 9. Economic considerations 18 10. Methodological criticism 19 11. Conclusion 19 12. Bibliography 20
Introduction
Success in today’s world, threatened by the financial crisis, means making the best of each selling situation. The key to a successful business is to sell the right product to the right customer, on the right time, for the right price.
More and more service companies, especially in the transportation and hospitality industry use revenue management to maximize their revenue. This practice (also called yield management) refers to tactics used by different businesses based on the analysis and prediction of consumer behavior having as purpose the development of a strategy which juggles with prices and creates higher profits.
In the hotel industry, Bill Marriott was the pioneer of revenue management. The Marriott Organization researched the customer behavior and the demand for their variety of products. After research and analysis they determined that customer demand can be
Contents 1. Introduction 2 2. Problem Statement 3 3. Problem formulation 3 4. Delimitations 3 5. Methodology 4 6. Analysis 5
6.1 PEST Model 5 6.1.1 Political environment 5 6.1.2 Economical environment 7 6.1.3 Socio-cultural environment 7 6.1.4 Technological environment 10
6.2 Customer perception towards fairness/unfairness- analysis 11
6.3 The overbooking process 13 7. Suggested solutions 14
7.1 Advance planning 14
7.2 Ask for volunteers 14
7.3 Appropriate compensation 15
7.4 Training the employees 15
7.5 Policies 17 8. Consequences of the suggestions 18 9. Economic considerations 18 10. Methodological criticism 19 11. Conclusion 19 12. Bibliography 20
Introduction
Success in today’s world, threatened by the financial crisis, means making the best of each selling situation. The key to a successful business is to sell the right product to the right customer, on the right time, for the right price.
More and more service companies, especially in the transportation and hospitality industry use revenue management to maximize their revenue. This practice (also called yield management) refers to tactics used by different businesses based on the analysis and prediction of consumer behavior having as purpose the development of a strategy which juggles with prices and creates higher profits.
In the hotel industry, Bill Marriott was the pioneer of revenue management. The Marriott Organization researched the customer behavior and the demand for their variety of products. After research and analysis they determined that customer demand can be
Bibliography: 1. D. Hoffman & J. Bateson, Services Marketing- Concepts, Strategies & Cases, 4th edition, 2008 2 7. Florian v.Wangenheim & Tomás Bayón, Behavioral Consequences of Overbooking Service Capacity, Journal of Marketing, Vol. 71 (October 2007) 8 11. Legally Speaking H&MM, May 5, 2008 12 [ 2 ]. Florian v.Wangenheim & Tomás Bayón, Behavioral Consequences of Overbooking Service Capacity, Journal of Marketing, Vol. 71 (October 2007), 36–47 [ 3 ] [ 10 ]. Legally Speaking H&MM, May 5, 2008 Karen Morris [ 11 ] [ 12 ]. Overbooking rights http://www.hg.org/article.asp?id=25146 (Accessed on 18th of December 2012) [ 13 ] [ 14 ]. Public Holidays in the U.S http://en.wikipedia.org/wiki/Public_holidays_in_the_United_States (Accessed on 26th of December 2012) [ 15 ] [ 20 ]. Cultural Differences http://geert-hofstede.com/united-states.html (Accessed on 26th of December 2012) [ 21 ] [ 22 ]. Technology http://en.wikipedia.org/wiki/Technology (Accessed on 26th of December 2012) [ 23 ] [ 36 ]. http://www.tripadvisor.com/ShowTopic-g499455-i9500-k4302018-Overbooking-Xpuha_Yucatan_Peninsula.html (Accessed on 05.01.2013) [ 37 ]