Contemporary Techniques of Managing Revenue in Star Properties: An Overview

Abstract

A hotel’s success depends on the pricing particularly of all the products and services on offer to a guest. A well designed pricing strategy can give a much needed impetus to the hotel’s revenue maximization effort. A guest is more concerned about a good rate, but hotels have to achieve a fine balance between demand / supply of rooms and make a profit. Revenue management is said to be the foundation of a profitable property. The art lies in selling the right room to the right guest at the right time and at right price perceived both by the guest and the hotel. In today’s technology driven world, any business has several ways to increase its footfall or market to the consumers. Products and services can be easily made available to the buyers. A hotel’s overall growth depends upon its financial health. The main product that the hotel sells is the room which fetches the maximum amount of revenue in a relatively short time. A well thought out pricing strategy can make a positive difference to increase business and chalk out plans for future growth. Today properties struggle to sell rooms which poses as a major roadblock to earn revenue as a room not sold today results in room revenue lost forever. It is prudent for hotels to examine their revenue management systems and fortify them according to market conditions. Hotel business has changed drastically from guest and hotel point of view. There are several factors for this transformation. In such a changing scenario, this overview throws light on the techniques which can be used to manage revenue in an effective manner following a systematic etc. These hotel has to promise pricing and rate integrity, good inventory etc. These a dependable distribution network, understand the intangible value of business, gives important to service which results in profits.

Keywords: Revenue, Up selling, Forecasting, Pricing

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