revenue management overview

maximize total hotel profit

pricing of rooms

space inventory for the transient

often described as

selling the right product

right customer

right time

high fixed costs

low variable costs

ability to forecast demand

perishable inventory

ability to segment customers

"roll the dice"

deciision

sell at a discount

don't sell at discount

sell at full price

empty room

revenue strategy

competitive landscape

positioning

market share

owner support

group strategy

develop strategy in partnetship with Sales

segment performance

optimize group demand

businessevaluation

revenue analysis

forecasting

hitel and market performance

segmentation and channels

inventory management

rooms pricing and inventory controls

function space pricing and inventory controls

pricing

position in the market

how product is priced

rate structure

the customer

the property

the market

rational pricing

Market postitioned Menchmark Prices

exist for every price for every product at the property

seasonal pricing

mix of business

derermine best overall segment mix

set segment goals

need tomes through qualified, targeted discounts

customer relationships

strike a balance

short term

long term

properly position rates by

pricing philosophies

brand guidelines

identifying seasonal trends

ensure aligment of rate structures

non-qualified/qualified rates

anticipated....

volume

pattern

length of stay

seasons

last room availability

historical performance

customer relationship

payment history and financial status

transient pricing

segmentation of custimers based upon

needs: price flexibility,

behaviour: booking pattern

willingness to pay: partially a function of familiarity with property

custoers response within Quality Tier

rates must be positiones to reflect fair value

upselling based solely on real value added

market postitoned Benchmark rate

rational reason for each rate

menu quoting

make it eays for customers to buy

determine best overall segment mix

set segment goals

discounting "need times" through qualified discounts

changes in mix can have dramatic impact on ADR without changes to price

maintain long term relationship with few customers

customers who

groups/series/aircrews

inventory allocation

what price points

how many rooms are available at each point?

Yield Management

sales strategy

how the product us sold

Manu Quoting

Seasonality

computer system

yield management is new

concept invented by the airlines

reason- airlines lost so much money

leisure travelers

bad for the custoer

revPAR index

balance of occupancy and ADR

= Hotel revpar/Market revpar

response to various market factors

dynamic combination of ppl

working toward completion of the recenue cycle

determine the properties

identify the needs and expectations

perform subjective evaluation of the quality

identify the competitors prices position and strategies

assessing rate/value relationship of your property to that of the competing properties

property visit checklist

property websites

competitive value assessment form

competitive shop call

rate/value matrix