Hotel Revenue Management Case Study
Revenue Management first introduced in Airline Industry . The airlines name was “ …show more content…
There are some key performance indicators which helps to use revenue management in hotels efficiently . These are REVPAR , TREVPAR, TREVPAC,
GOPPAR , REVPAM , REVPASH, Flow Through , REVPOR etc …show more content…
The market Segmentation also helps hotel to know about length of stay , day of weeks stays , total revenue per room , total revenue per client , booking lead time , cancellation % , No show ratio etc .
Hotel use revenue management for yieldable and non yieldable facts as well as calculating displacement . Non yieldable segments which hotel cant be rejected even if hotel could sell at a higher rate on a particular day such as Last room availability , Corporate contracts , Tour operators allotment etc . A displacement calculation should be performed regularly on main accounts to evaluate revenue gain . Revenue management helps hotel to extract top accounts ( Tour Operators , Corporate) and evaluate possible displacements day by day .
Revenue Management helps hotel to find out the demand . It also helps to take pricing decisions which is based on solid data . Demand is a yearly roadmap which helps to build revenue management strategy . It helps to find out historical demand patterns and match them with future events . Demand calendar helps to know how much revenue can get from a event