This document analyzes revenue generation at the Radisson Blu Marina hotel in New Delhi. It finds that room revenue makes up the largest portion at around 50-60%, followed by food and beverage at 40-45%. The average room rate at Radisson Blu is higher than comparable hotels, and the occupancy rate is around 89%. The document recommends increasing marketing efforts, conducting customer research, upgrading software, and allowing outsiders to use the spa to boost revenue further. In conclusion, it finds that Radisson Blu generates most of its profit from room bookings and food and beverage outlets, and that revenue management strategies help maximize profits through flexible room pricing.
2. Justification of the Topic
Measuring revenue generation is the part of
ascertaining profit.
Analyzing core business function from where profit
generation is high or low should be monitored.
This study will help in taking corrective measures
against low profit generation area.
This study will lead us in forecasting sales.
Role of Revenue management.
3. OBJECTIVE OF Study
To analyze the role of Revenue Management in hotel
My primary objective was to study different sources
from where hotel industries generate revenue.
To analyze the Financial growth and valuation Of
Hotel .
My focus lies on the analysis part which identifies
these specific areas and to justify the significance of
their contribution.
To learn on the software BOSS ,MICROS and OPERA.
4. Research Methodology
The methodology used for research study is analytical and
subjective in nature which requires controlling & managing
the inventory relevant data and compiling databases to
achieve complete understanding of Sales process in hotel.
Data types:
Primary source: Data collected from Radisson Blu’s
software “Opera, Boss, Micros” and through individual
interactions with the employees and guest.
Secondary source: From the company’s website
(www.radissonblu.com) and www.carlsonrezidor.com.
5. Major Findings
Most of the profits are arises from room occupancy in
Radisson Blu.
The next source for revenue generates from F&B.
Mostly customers are price sensitive.
Offers do attract Corporate for booking.
People from corporate are package sensitive, there is
high chance of customer switching.
Membership also impacts profit generation.
6. Tourism has now become a significant industry in India. As per the World Travel
& Tourism Council, the tourism industry in India is likely to generate US $121.4 bn
of economic activity by 2016, and the hospitality sector has the potential to earn US
$24 bn in foreign exchange by 2016.
The occupancy ratio was around 57%, up 1% from last year.
The average room rate decreased over the last one year by about 3.4% due to supply
pressures and the general slowdown in the economy.
The long term outlook for the Indian hospitality business continues to be positive.
Government of India increased spend on advertising campaigns (including for the
campaigns 'Incredible India' and 'Atithi Devo Bhava' - Visitors are like God) to
reinforce the rich variety of tourism in India. The new Indian government has stated
that tourism will be a key focus sector.
As per Cushman & Wakefield (C&W) reports, hospitality sector of India is
expecting to witness better infrastructure growth. Approximately 4,304 new hotel
rooms are expected to open in 2016, of which 36% for Mid-scale, 13% in the upscale
segment, 17% is expected for Budget segment, 13% in Upper Upscale, and 20% in
the Luxury segment
7. ABOUT RADISSON BLU
Radisson Blu, formerly Radisson SAS, is an upper
upscale brand for Radisson Hotels primarily outside
the United States, including those in Europe, Africa,
and Asia.
These are operated by Carlson Rezidor Hotel Group.
8. S.W.O.T Analysis
STRENGTHS
•International Brand of High Repute
•Locational Edge
•Widely well Accepted F&B options
•Spa of International Standard
•Day Use / Wash & Change Offer
•GRAB And RUN
WEAKNESS
•Limited Room Inventory
•Limited Superior Category &Twin
Bed Rooms
•Shortage of staff
•Location
OPPORTUNITIES
•Better Branding
•The Growth In Market
•Focus On Travel & corporate
Segment
THREATS
•Upcoming hotels within the airport
and nearby locations
• Low Rates offered by high inventory
and newly opened Hotels
9. The Revenue Generation Divisions of Hotel
CATEGORIES OF ROOM
SUPERIOR ROOMS
DELUXE ROOMS
BUSINESS CLASS
EXECUTIVE SUITE
DELUXE SUITE
PRESIDENTIAL SUITE
PHYSICALLY
CHALLENGED
Single occupancy Double occupancy
6500 7500
7000 8000
8000 9000
10000 10000
11000 11000
12000 12000
10. FIFTY 9 (Restaurant)
Breakfast buffet (07:00
AM to 10:30 AM)
Rates Starts From Rs. 699
Plus Tax
Lunch (12:30 PM to 03:00
PM)
Rates Starts From Rs. 999
Plus Tax
The Great Kebab
factory
(TGKF)
The Connaught Bar
The SPA
Revenue Generation
from Taxes
particul
ars
Lux tax Service
tax
D vat
tax
Room 15% 8.7% 12.5%
Spa 3% 14.5% ----
Food ---- 12.5% 12.5%
Liquor ---- 5.8% 20%
laundar
y
15% 14.5% ----
14. Revenue mix of Hotel
0
10
20
30
40
50
60
70
ROOM F&B OTHERS
50.9
42.6
6.6
68.47
29.99
1.54
AVERAGE
RADISSON
15. Comparison With Same Inventory (Room) Hotel
Occupancy % Average Rate
65.60%
89%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
50-150 ROOMRADISSON (90)ROOM
OCCUPANCY %
OCCUPANCY %
5686
5640
5610
5620
5630
5640
5650
5660
5670
5680
5690
RADISSON AVERAGE
AVERAGE RATE
AVERAGE RATE
16. Comparison With Independent Hotels
5686
5640
5610
5620
5630
5640
5650
5660
5670
5680
5690
RADISSON AVERAGE
AVERAGE RATE
AVERAGE RATE
17. Recommendation
Use of creative advertisement to attract more and more
customers and to create awareness among them.
Radisson BLU should regularly conduct market research
and surveys for knowing customers perception and for
facing threat from competitors.
Radisson BLU should play to make its promotional
activities more effectively.
Take the feedback of the guest.
Radisson BLU open the door of SPA for outsider guest for
making more revenue.
Upgrading software .
Trends in industry .
Skill development .
Required manpower.
18. Conclusion
The study has been done on Revenue generation process of Radisson BLU Marina
Hotel Connaught Place. Revenue management is not only based on maximizing
revenue either. Besides the fact that hotels benefit from implementing Revenue
Management, it also has advantage for the customers. Indeed, they make use of the
various offers. Customers for whom room or a service is very important are happy to
get this seat or service, in spite of the price. Radisson Blu Marina is high income
generate on rooms. It’s measure source of generating revenue is from room booking.
On the basis of analysis this study further conclude that the I find the result is 60%
revenue generate by hotel rooms. Hotel rooms are divided in different categories
Superior, Deluxe, Business Class, and three Suites also in Radisson Blu Marina
Executive Suite, Deluxe Suite and Last is Presidential Suite. Even has generating
good revenue on a daily bases help of Food and Beverage. .Radisson Blu Marina
has 3 outlets generating 40-45% of revenue of the hotel. Customer more attract on
the hotel brand. Customer first thing see in the hotel outlet. Revenue management
manage all thing of the hotel and change the room price in daily bases for generating
revenue. Hotels room price depend on BAR rate.
19. Reference list
Marketing Management of Philip kotler Second edition
www.carlsonhotels.com
www.radissonblumarina.com
www.radissonblu.com
Radisson Blu Marina Hotel Sales
www.wikepedia.com
Government of India Ministry of Tourism H&R Division
Document
www.abbott.co.in