The paper 'Five-Year Revenue Management Plan for Maistra Company" is a good example of a management assignment. Revenue management is the process of providing and making sure that maximum cash is accessible for use in the company. In other words, it means to increase the REVPAR for the specific company. Revenue management also involves the utilization and management of idle funds in the organization on short terms investments in order to engender more returns. This paper will, therefore, look into a specific aspect of revenue management and that is budget.
But first, it will develop a five-year revenue management plan for Maistra Company Question 1. The five-year revenue management plan for Maistra Company Maistra Company needs to adopt an action plan for the next five years that will see greater revenue collection, expansion and growth for most of the sectors of its revenue drivers. This can only be done if an effective revenue collection and the budgetary system are put in place on time. The first part of revenue collection will involve price adjustments in order to maximize the amount of revenue collected and thereafter there is a need to budget this collected revenue for further investment (Gustavo, 2002).
The following action plan will, therefore, centre on the need to have a correlation between central reservation departments, sales department, website advertisement, distribution channels and customer care departments (Lashey & Morrison, 2000) Since most of the hotel rooms are packed during public holidays, weekends and other prime days of the year, the management would need to make adjustments in prices for offer during these periods. This would make it possible for the company to raise more revenue that would keep the company running even after the peak seasons are over.
Ideally, the company would need to raise the price by up to 10% for hotel rooms and a further 5% for other products and services. Food and drinks could be slightly increased by 3% in order to ensure that customers don’ t run away from the hotel. This increment can be done in a gradual manner lets say the company starts with 4% increment for the first year, 2% increment for the second year, 2% for the third, 1% for the fourth year and a final 1% in the fifth year.
(Gustavo, 2002) As a matter of fact, the company has not been able to meet international standards in terms of the specific customer needs or quality of services and products hence the need to be able to generate more funds to b used for improving the current situation. (Gustavo, 2002)For instance, when a sizeable amount of revenue is achieved for this increment, equitable budgeting can be done especially for the marketing department. If the current crop of problems is anything to go by, more funds will be needed here for the development of appropriate technologies for internet marketing.
(Powers, 1995) An amount of 10% allocation of all revenue obtained for the first year after the recommended increase will see into it that the company franchises marketing services and also placing their ads on as many search engines as possible. (Kin-Keung, 2005)This is because many people get information about the hotels they would want to stay from such sources. Since this company also experiences changing customer expectations, more funds would be needed to develop products and services to go inline with customer expectations.
Food and drinks can be served as takeaway products for most of the customers for this company who are group tours (Powers, 1995). With more than two five star hotels and resorts being refurbished and constructed, the company is able to make more money and get the right clients including those for five-star class. (Nicola, Kirk, Tankut & Andrew, 2002)
ReferencesThe paper 'Five-Year Revenue Management Plan for Maistra Company" is a good example of a management assignment. Revenue management is the process of providing and making sure that maximum cash is accessible for use in the company. In other words, it means to increase the REVPAR for the specific company.