Currently, the numbers of hotel revenue management theories that exist in the market are
almost at par with the number of people using it. Since revenue management is
also known as yield management, different people perceive it in different ways.
The tasks that are implemented in revenue management can work wonders if
applied rightly and constantly.
Management of the business revenues flow
process should conform to the operation of the concerned hotel. Special
importance should be given to the goal that one wants to achieve in this
regard. The main objective of revenue management system should be maximization
of the hotel revenue by making proper use of the available pockets of occupancy
demand.
Application of Revenue
Management System in the Industry
Some hotels consider revenue management an important aspect
of their business and allocate appropriate resources. Others restrict the
management process to the front office, reservations department or the local
management.
The primary matter of concern here is to find that many of the
people responsible for revenue management have no formal revenue management training, no definite goals or any means to
accomplish their target.
Deduce the level of
Competition
The first step towards implementation of the apt revenue management system is to be able
to comprehend the amount of competition in the market. It is important for hotel
owners to understand the work ethics of their contemporaries, more than their
own.
A good way to start determining the potential of your opponent would be to
follow the weekly and monthly editions of the Smith Travel research. It helps
comparing data like average rate, occupancy and cost per available room of your
hotel and its parallels. This will help deduce the actual position of your
hotel in the market and encourage you to set targets that you want to achieve.
Principles of Traditional
Yield Management
Traditional yield management involves settling on room rates
and inventories based on their demand. Such alterations include historic data, present
room reservations, prediction and some amount of immediate beliefs.
Historic data may often point to the fact that occupancy
rates are higher during certain times in the year, irrespective of the current
scenario. The primary concept here it that hotel administrations must increase
room rates as the demand for occupancy increases.
Faulty Measures of Revenue
Management
Generally, you will be able to figure out hotels that use
poor revenue management systems. Initially, many of these hotels may keep high
rates for rooms. Eventually, however, the rates are reduced when the expected occupancy
rates are not achieved.
Thus, it can be proved that revenue management system need
not be complicated to get desired results. In fact, hotels must assign such
duties to people who have interest in this field and are quite good with
numbers. If there is no one to shoulder this responsibility, hotels must seek
professionals adept in Revenue
Management Consulting, as such investments could work magic in future.
