The paper "Hotel Revenue Management" is an excellent example of coursework on management. In contemporary society, Revenue Management (RM) practice in hotels has evolved significantly and has turned out to be one of the most identifiable and integral characteristics of hotel operating strategy. The practice was adopted by hotels in the 1980s. This was after the airline industry for instance the British Airways showed huge achievement after using pricing, capacity, and inventory to manage revenue (Cross, 1997). However, compared to the last two decades, Revenue Management in hotels in recent times has redefined considerably.
The general approaches to pricing strategy, inventory allocation, channel management, and the use of information related to revenue management have modified greatly (Cross, 1997). This assignment will entirely focus on a critical analysis of pricing and duration as it pertains to hotel Revenue Management including the definition of key terms, the importance of pricing in effective Revenue Management, and examples of pricing policies and methods. The aim of the study is to enable students to demonstrate an understanding of the key factors associated with the strategic levers affecting Revenue Management. Definition of key terms, and concepts The assignment will involve the definition of various keys terms used in Revenue Management.
These terms are as explained herein. Revenue Management The author argues in a well-organized manner that Revenue Management is the employment of disciplined analytics which usually predicts clientele behavior at the micro-market level and capitalize on price and product availability in order to maximize the growth of revenues. The main objective of Revenue Management is to sell the right product at a particular price and at a precise time to the right clientele.
The discipline aims at making individuals understand consumers’ views of product value and correctly aligning placement, product prices, and availability with every consumer segment (Cross, 1997).
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