Revenue management is a long-term strategy that optimizes hotel income during periods of high and low demand. It involves segmenting the market and adapting services to customer needs. The six steps of revenue management are: (1) data collection, (2) interpretation of information, (3) preparation of a hotel forecast, (4) pricing and distribution strategy, (5) implementation, and (6) results analysis. Correct revenue management is based on collecting data to inform pricing, distribution, and forecasting decisions.
a presentation to explain the term room tariff, the basis of charging tariff, factors that make the rate go up or down. Also, the importance of tariff in success of a hotel in financial terms. Revenue management introduction.
Examining a business is important to understand the success or failure. Mathematics and Statistics help uncover all types of ratios, proportions, averages, deviations etc. in all walks of human life. Maths is almost infallible. Statistics, a little less so.
Learning to use maths for a hospitality career begins right in the First year, but the Education Planners wait till the end to expose the students to the real villain in the movie. Profits, onward & upward...
Everything you need to know about Hospitality Revenue Management – and how to select the right solution and/or services for your organization.
Key takeaways from this Guide:
* KEY CONCEPTS
Need-to-know concepts, terminology and emerging trends
* MUST-ASK QUESTIONS
for solution providers and consultants that really matter
* BUYING CONSIDERATIONS & CHECKLISTS
Factors in the purchase decision, plus a framework
for assessing the options
* ROADMAP & RECOMMENDATIONS
Important tips for maximizing the value of your investment
Read the complete guide to know more.
Visit our website: https://rategain.com/
Different prices for different guests is the foundation of the revenue management strategy in airlines, trains, cabs, cruises as well as hotels. But now we have discovered a beautiful new strategy called "Open pricing" where we keep all types of room rates open till the last moment. Learn more in this paper.
Another file in the series on Revenue Management, the most important topic in Hotel front Office. Concepts are presented in simple language.
a presentation to explain the term room tariff, the basis of charging tariff, factors that make the rate go up or down. Also, the importance of tariff in success of a hotel in financial terms. Revenue management introduction.
Examining a business is important to understand the success or failure. Mathematics and Statistics help uncover all types of ratios, proportions, averages, deviations etc. in all walks of human life. Maths is almost infallible. Statistics, a little less so.
Learning to use maths for a hospitality career begins right in the First year, but the Education Planners wait till the end to expose the students to the real villain in the movie. Profits, onward & upward...
Everything you need to know about Hospitality Revenue Management – and how to select the right solution and/or services for your organization.
Key takeaways from this Guide:
* KEY CONCEPTS
Need-to-know concepts, terminology and emerging trends
* MUST-ASK QUESTIONS
for solution providers and consultants that really matter
* BUYING CONSIDERATIONS & CHECKLISTS
Factors in the purchase decision, plus a framework
for assessing the options
* ROADMAP & RECOMMENDATIONS
Important tips for maximizing the value of your investment
Read the complete guide to know more.
Visit our website: https://rategain.com/
Different prices for different guests is the foundation of the revenue management strategy in airlines, trains, cabs, cruises as well as hotels. But now we have discovered a beautiful new strategy called "Open pricing" where we keep all types of room rates open till the last moment. Learn more in this paper.
Another file in the series on Revenue Management, the most important topic in Hotel front Office. Concepts are presented in simple language.
5 Ways to Boost Hotel Value with Revenue Management Strategies.docx.pdfRevnomixSolutions
Revenue management strategies by Revnomix can maximize asset value for new hotels as it helps you attract the right business, boosts your bottom line & more. Visit https://www.revnomix.com/5-ways-to-boost-hotel-value-with-revenue-management-strategies/ to know more.
Advanced revenue management for hotels 1 - lisbon 2016 - english
The main objective of this seminar is to understand the purpose of revenue management in both technological and commercial terms. With this information, a hotel can evaluate, develop and optimize its pricing strategy with the goal of maximizing profits.
Revenue Management is a method of managing sales of hotel inventory by applying yield management techniques.
Basic elements of Revenue Management used to manage inventory:
Historical data – statistics, demand and trends
Forecasts
Price management tools
Overall strategy
Pricing policies
The main factors in setting prices are: Advanced Revenue Management Contents • Introduction • Basic Definitions • Forecasting • Benchmarking • Segmentation • Pricing • Reports, Statistics • New Tools • Exercises • Glossary • Exam • Reading
tutorial Introduction to Revenue Management for Hotels Hospitality seminar- what is revenue management in hotel industry course
The right choice of Revenue Management System
How to generate yields and occupancy.
How to manage group displacement in Hotel Bookings
La scelta del software di Revenue Management
The 2015 Smart Decision Guide to Hospitality Revenue Management [Chapter 1]Starfleet Media
This Smart Decision Guide is intended for decision makers, including hotel and resort operators, property managers and owners, who are looking to bring the science of next-generation Hospitality Revenue Management to their businesses. Here they will find a roadmap for getting started on the path toward increased hotel revenue and profitability. The key takeaways include actionable insights for evaluating and selecting the right consulting and/or technology partners as well as for putting the right organizational resources, business processes and performance metrics in place to maximize return on investment.
Front office revenue management & it’s application in the hotelMudit Grover
• Revenue management & it’s application in the hotel industry
• Revenue Management
• Revenue: Money that hotel collects from the sale of rooms or from the sales of product & services
• Revenue Management: The process of examining & factoring in consumer behavior to achieve the max. amount of profit from a perishable good.
• Revenue Manager: Individual responsible for decision making necessary to maximize the property’s long term RevPar.
• What is Revenue Management??
• It is an umbrella term for a set of strategies that enable capacity constrained service industries to realize optimum revenue from operations.
• Making the very best use of product is yield management.
• Therefore, yield management is the management in the terms of maximizing revenue generation and also called as Revenue Management or Revenue Enhancing Technique.
• “The hotel’s aim should be high profit business rather
than high volume business”.
• Objectives of Revenue Management
• Role of Revenue Manager
• Yield Management Team
• Benefits of Yield Management
• Measuring Yield
• Revenue Management Tools
• Revenue Management Software
• Software should be much faster and more accurate.
• System should be able to monitor & mange risk automatically.
• Identify the dates when demand is low/high & revenue is low/high.
• Software should be able to guide about the provision about the special events/festivals etc.
• At last a repot to be printed suggesting about the amendments in terms of rates, occupancy, revenue etc, for maximum benefit of organization.
• Conclusion
Revenue management is system that attempts to understand, anticipate and then react to consumer behavior in order to maximize profit. Therefore, a revenue manger should be able to decide a room should be sold on rack rate for a day or two would be more profitable for the same room sold at discounted rate for a longer time which is the main objective of revenue management.
Thus a yield management team should predict the demand of the rooms, allocate the right number of rooms to various market segments by using revenue management tools in order to maximize the occupancy so as
to maximize and optimize profit.
Eco 10 ,B COM, IGNOU-Elements of costing
ALL SO USEFUL FOR CA CMA, CS ,B COM, BBA. MBA
IGNOU BCOM ECO-10 (Elements of Costing) Study Material –Dear Learners, The full downloadable free study materials of ECO-10 (Elements of Costing) are listed below to facilitate your studies for securing good marks in upcoming term end examinations. Though, your performance in examination will mostly depend on your efforts only. Even though, I can assure you that the following study materials will proof to be cabalistic in your efforts.
Block- 1 Basic Concepts
Unit-1 Nature and Scope
Unit-2 Concept of Cost and Its Ascertainment
Block- 2 Materials and Labour
Unit-3 Procurement, Storage and Issue
Unit-4 Inventory Control
Unit-5 Pricing the Issue of Materials
Unit-6 Labour
Block- 3 Overheads
Unit-7 Classification and Distribution of Overheads
Unit-8 Absorption of Factory Overheads
Unit-9 Treatment of Other Overheads
Block-4 Methods of Costing
Unit-10 Unit Costing
Unit-11 Reconciliation of Cost Financial Accounts
Unit-12 Job and Contract Costing
Unit-13 Process Costing
1. Cost Accountancy
2. Cost Accounting
2.1 Definition of Cost Accounting2.2 Objectives of Cost Accounting2.3 Importance of Cost Accounting2.4 Advantages of Cost Accounting2.5 Limitations of Cost Accounting2.6 Reports Generated by Cost Accounting Department
3. Installation of Cost Accounting System
3.1 Basic Considerations3.2 Steps in Introduction3.3 Essentials of a Good Cost Accounting System 3.4 Difficulties in Introduction
COSTING means recording of all the costs incurred in a business in a way that can be used to improve its management. this is useful or commerce students and professional. BCOM, CA,CMA,CS
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
03. Hotel Revenue Management-Six steps in RM by Dino Leonandri
1. 3 rd Session-Hotel Revenue Management Process
by : DR. Dino Leonandri, SE, MM, CHA, CBM
1
Please subscribe for other presentation at
www.youtube.com/channel/UCHWtDItwtFziERwD0qIrP4Q
2. Revenue management is a long-term management strategy with immediate
results that optimise the income of a hotel establishment during periods of
high and low demand.
As such, revenue management could be defined as a demand behaviour
prediction technique, the aim of which is to increase a hotel’s income. More
specifically, revenue management can be considered a formula that enables
a room to be sold today at a specific price, with the certainty demand at
higher prices does not exist.
In this regard, revenue management enables us to segment the market,
adapting our service to the needs of the client in terms of time, price and
distribution.
3. (1) Data collection
Correct revenue management should be based on the collection of a series of data that enables
decision making, which translates into price and distribution strategies. Consequently, all the
information obtained related to clients and their purchasing habits becomes essential for any
revenue manager.
Booking dates, rates, available rooms, no-shows, cancellations, room types, etc. are some of this
essential data. This means a good booking integrated with the hotel’s property management
system (PMS) and channel manager can be the difference between optimising income long term
and surviving in the short term without future guarantees.
Revenue management is founded on six steps defined
below:
4. Revenue management is founded on six steps defined
below:
(2) Interpretation of information
Interpreting the data collected is the basis for the production of the
sales forecast as well as pricing and distribution strategies.
A revenue manager has a complicated task and must focus on the
segmentation of the market, or focus on the creation of homogeneous
groups of clients that are, within each group, heterogeneous. The client
is equal to demand.
5. Revenue management is founded on six steps defined
below:
(3) Preparation of the hotel forecast
When preparing the sales or hotel forecast, precision is decisive in
obtaining a measurement of demand, which includes periods of
peaks and troughs in activity. This forecast enables you to react
when faced with periods of low demand, design different rate levels,
and choose the optimal distribution channels for the management of
bookings.
6. Revenue management is founded on six steps defined
below:
(4) Pricing and distribution strategy
Defining your pricing and optimal distribution channels
strategy is the step prior to fully engaging in revenue
management. As such, you must consider concepts such
as parity and value, given that positioning a price is not
simple.
7. Revenue management is founded on six steps defined
below:
(5) Implementation
Putting the designed strategy into practise will also require time and planning in particular. Two essential
issues are raised:
(5.1.) Technological development and solutions. Currently, new technologies offer solutions that enable us
to easily implement our revenue strategy. These developments gather data from the PMS and, depending
on your needs, offer the chance to perform different analyses that facilitate the decision making process.
Revenue Management Systems (RMSs) are an option. However, when trying to set prices in accordance
with competitors, distribution channels, pick up or booking pace and, in addition, you are the one who sets
your own business rules, there are other solutions that better adapt to your hotel’s needs.
This is the case with a Distribution Manager System (DMS), a new revenue management solution that
Paraty Tech will present at FITUR.
(5.2.) Training of employees. Revenue management must involve every staff member at the hotel, which is
why training becomes a powerful ally.
8. Revenue management is founded on six steps defined
below:
(6) Results analysis
Monitoring results through completing periodic reports that enable
comparisons to be made is another key point in revenue management.
Without an exhaustive analysis of results, it is impossible to establish
corrective measures that allow you to optimise revenue management.
9. Room Rate
Structure
• The combination of all the rates offered at a hotel is called the rate structure.
• Hotel room rates are both quantifiable and qualifiable.
• Average Daily Rate (ADR) is a term used in different ways. In this analysis, it is used to
determine a starting point in establishing a hotel’s rate structure
10. Place your screenshot here
10
Cost
Level of
services
Location
Target
market
Competition
Factors Affecting Room Rate
11. The Hubbart Formula
Roy Hubbart developed a method to calculate a hotel room rate
based on the costs incurred in operating the hotel and a reasonable
return on investment for the investors
The Hubbart Formula incorporates three schedules. I looks at specific
financial calculations, II looks at the rates per occupied room, and III
incorporates square footage into the analysis.
12. Hubbart Formula– Schedule I
• Traditional room cost is considered
• In addition, Return on Investment is factored in to give
owners/investors a fair rate of return.
• What hotel trend precipitated the need to incorporate ROI?
That is, what changed in the industry and what other industries
became involved?
13.
14. Hubbart Formula– Schedule II
• The figure reached at the end of Schedule I is used to determine the
average daily rate the hotel would need to charge to meet its
obligations (operating costs and owner ROI).
• Schedule II incorporates opportunity cost.
• Schedule II also assumes an average occupancy percentage.
• How can using the 70% occupancy figure sometimes cause problems?
15. Hubbart Formula Example - Schedule II
Example
1. Amount Needed from Guest Room Sales (Schedual I) $2,060,000
2. Number of Guest Rooms Available 175
3. Number of Rooms Available on an Annual Basis
Item 2 multipled by 365 (175x365) 100% 63,875
4. Less Allowance for Average Vacancy 30% 19,163
5. Number of Rooms to be Occupied Based
on Average Occupancy 70% 44,712
6. Average Daily Rate Required to Cover Costs and
Provide Reasonable ROI (Item 1 divided by Item 5) 46.07
$
16. Hubbart Formula– Schedule II
• Schedule III makes an assumption that
larger rooms are more expensive to
maintain.
• A square footage calculation is made of
the area of all the guestrooms in a hotel.
• What are some of the drawbacks of using
a strict square footage calculation?
17. Hubbart Formula Example - Schedule III
Example
1. Amount Needed from Guest Room Sales (Schedule I) $2,060,000
2. Square Foot Area of Guest Rooms 70,000
3. Less Allowance for Average Vacancy (70,000 x 30%) 21,000
4. Net Square Footage of Occupied Rooms (70,000 x 70%) 49,000
5. Average Annual Rental per Square Foot (Item 1 divided by Item 4) 42.04
6. Average Daily Rental per Square Foot (365 divided by Item 5) $0.12
18. QUIZ
Question :
Name the six steps that define Revenue management
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