02. Hotel Revenue Management by Dino Leonandri-STP Trisakti Class LJ

1. 2nd Session of
Hotel Revenue Management
By : Dr. Dino Leonandri, MM, CHA
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2. As soon as the last
room is sold,
someone calls for a
longer stayContents
What are the most common problems a hotel faces
when it comes to managing booking?
Or,as soon as the last room is
sold, someone calls, willingto
pay a higher price, or from a
higher-priced segment.
No matter what public rate
you set or price you
charge, it never exactly
meets the price
expectation of theguest.
When you are completely
sold out, someonecancels
last minute or does a “no
show.”

3. The Revenue
Managemen
t Actions
and Process
Data
Collection
Data
Aggregation
Distribution
Decisions
Forecasting
Data
Analysis

4. Yield
Yielding is often misunderstood as raising or
lowering the public rates, but historically, it is
about turning away less attractive guests. To
do this, we open or restrict the rates
(segments), room types or channels. Setting a
minimum length of stay is one way to do it.
Adding or removing inventory for a channel is
another option.
Price
Raising or lowering the price is the most basic task of a revenue manager.
By raising the price we increase revenue but potentially lower the number
of bookings. If demand is high this is often the right strategy as there are
enough potential guests willing to pay the high rates.
Marketing
Marketing works a little differently than price or
yield. That’s because marketing doesn’t run on the
same clock as the other two- you can’t simply “turn
on” marketing in the morning and fix today's
problem. Yet marketing can be an extremely
effective tool. Imagine that you forecast the next
month will be lower than usual. Once identifying
the cause of the problem, you can request more
marketing actions in that area or channel.

5. (3) ADHOC Rate Code: These
are normally non-standard
rates which are offered as
special one-time rates for first
time corporate's.
(1) Rack Rate:
the Standard rate or Published tariff
defined by the hotel management
for a particular room category/type.
(2) Corporate or Commercial
Rate: These are rates offered
to companies that provide
frequent business for the hotel
(4) Group Rate: These are rates
which are offered to groups,
meetings and conventions using
the hotel for their functions.
(6) Incentive Rate Code: The Rate offered
to individuals who belong to an association or
holders
of special membership cards or Credit cards
(5) Best Available Rates ( BAR ): These rate codes
are the lowest discounted rate available for a day
which can be offered to the guest by the Reservation
or Front desk staff
(7) Promotional Rate Codes: These rates are
generally offered during low occupancy periods
to any guest to
promote occupancy. Early Bird Rates, Stay for 3 and
pay for 1 etc.

6. Sample Dynamic BARRate
BAR -01
BAR -02
BAR -03
BAR -04
BAR -05
0%TO 25%
26%TO 35%
36%TO 50%
5
1
%TO 75%
76%TO 100%

7. Key point in Revenue Management

9. Place your screenshot here
9
Cost
Level of
services
Location
Target
market
Competition
Factors Affecting Room Rate

10. 1. Survey your customers
.
7 ways to identify your target market
2. Enable customers to create profiles
3. Imagine your audience’s point of view
4. See what online reviews say

15. QUIZ
Question :
In your opinion, What are the most common problems a hotel faces
when it comes to managing booking?
Please answer the questions above and email to:
dinoleonandri@stptrisakti.ac.id
by email no later than 1 week ahead.
In the email subject, write the name of the campus, course and class
example :
1. Poltekpar Plb/DIK 6A/Hospitality Business
2. STPT/Class A/Revenue Management
3. Poltek Intl Jkt/AJ/Hotel Management