Revenue Management
Managers
Ethics
deciding what is best for the business
what is fair for customers to pay
Dynamic pricing
charging a different rate for same service at the same time
arrival time,
Length of use
cancellations
deposits
building relationships
Long-term connections
Short-term connections
amenities
tailored experiences
Markets
Rate Fences
Rules designated by companies to reach a desired audience
Customer willingness to pay
Forecasting
data analysis
Allows historical data to predict what the future
market will look like
RevPAR
revenue
ADR
supply
demand
KPI's
Inventory
price points
strategic planning
Cost-based pricing
involves summing product costs with desired
profit
Add text
allocation
distribution of inventory allows maximization of revenue
yield management
customer-centric
the customer
the service/product
fit market
Satisfaction
Reviews
Evaulations
Memberships
Profit
Sales = Cost + Profit
Profit = Revenue - expenses
Add text
value achieved by seller and buyer in a business transaction
maximized by sales strategies
forecasting
habitual spending
placing product in the right market
menu comprehension
Revenue Maximization
Selling
the right room
at the right time
at the right price
through apropriate channels
to the right customer
to maximize company revenue
identifying the competitors pricing
Pricing
seasonality
Rationality
segmented goals set by business
Philosophies
values
sellers perspective
buyers perspective
Myths
only associated with hotels
only a database used by one person
traditional
stagnant in nature
The 4 (5) C's
Calendar
forecasting
aggrogate demand
Clock
Differential pricing
time spent using service can dictate price so that revenue is maximized
Capacity
Standardization
control over a given service cycle
Cost
low cost = slack times
logic based
based on buying characteristics
amenities contribute to pricing placement
*customer
controls all of the above