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• 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.