1 / 14

REVENUE MANAGEMENT

REVENUE MANAGEMENT. Unit VII. Revenue Management Formulas. Formula 1: Potential average single rate Formula 2: Potential average double rate Formula 3: Multiple occupancy percentage Formula 4: Rate spread Formula 5: Potential average rate Formula 6: Room rate achievement factor

mhardie
Télécharger la présentation

REVENUE MANAGEMENT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. REVENUE MANAGEMENT Unit VII

  2. Revenue Management Formulas • Formula 1: Potential average single rate • Formula 2: Potential average double rate • Formula 3: Multiple occupancy percentage • Formula 4: Rate spread • Formula 5: Potential average rate • Formula 6: Room rate achievement factor • Formula 7: Yield statistic

  3. Revenue Management Methods • Capacity management: Balances risks of overbooking against potential loss of revenue from reservation cancellations, early departures, and no-shows. • Discount allocation: Restricts time period and product mix (rooms) available at reduced or discounted rates • Duration control: Places time constraints on accepting reservations in order to protect rooms for multi-day reservations (which represent higher levels of revenue)

  4. Revenue Management Formulas • Formula 8: Rev PAR • Formula 9: Identical yields • Formula 10: Equivalent occupancy • Formula 11: Required non-room revenue per guest • Rev PAG • GOPPAR

  5. Yield Statistic Formulas Formula #1 Actual Rooms Revenue Potential Rooms Revenue Formula #2 Room Nights Sold Actual Average Room Rate ___________________ X _______________________ Room Nights Available Potential Average Rate Formula #3 Occupancy Percentage  Room Rate Achievement Factor

  6. Rev PAR Formulas Formula #1 Actual Room Revenue Available Rooms Formula #2 Occupancy Percentage  Average Daily Rate

  7. Elements of Revenue Management Strategies • Group room sales • Transient room sales • Other revenue opportunities • Local and area-wide activities • Special events • Fair market share forecasting

  8. Revenue Management Meeting Participants • General manager • Sales managers • Catering managers • Reservations manager • Front office manager • Food and beverage manager

  9. High-Demand Tactics • Close or restrict discounts • Apply minimum length of stay restrictions carefully • Reduce group room allocations • Reduce or eliminate 6 p.m. holds • Tighten guarantee and cancellation policies • Raise rates to be consistent with competitors • Consider a rate raise for packages • Apply full price to suites and executive rooms • Select dates that are to be closed-to-arrivals • Evaluate the benefits of sell-throughs • Apply deposits and guarantees to last night of stay

  10. Low-Demand Tactics • Sell value and benefits • Offer packages • Keep discount categories open • Encourage upgrades • Offer stay-sensitive price incentives • Remove stay restrictions • Involve your staff • Establish relationships with competitors • Lower rates

  11. Four Revenue Management Tactics • Hurdle rate • Minimum length of stay • Close to arrival • Sell-through

  12. Revenue Management Software Revenue management software provides: • Continuous monitoring • Consistency • Information availability • Performance tracking • Special reports

  13. BIBLIOGRAPHY • Textbook of Hotel Front Office Management & Operations by Manoj Kumar Yadav. • Check-in Check-out Managing Hotel Operations by Gary K. Vallen and JoromeJ.Vallen. • Managing Front office Operations byMichael L KasavanaPhd,RichardM.Brooks. • Hotel Front Office Training Manual by SuvradeepGaurangGhosh.

  14. Bibliography • The Hospitality Industry • www.hospitalitynet.org • www.indianhospitalityonline.com/ • www.hospitality-industry.com • www.ibef.org • www.hospitalityupgrade.com

More Related