1. Introduction
It is foremost important to define what is meant by Revenue Management (RM). According to a definition provide by Choi and Mattila (2004), RM is a strategic business practice which aiming to trade a relatively fixed amount of inventory such as a room of the most profitable mix of customers in order to maximize profit (Mattila and Choi, 2005). Coincidentally, the core principle of RM is predicting consumers behavior and maximization of profit in order to attain the objective (Cross, 1997).
This report examines the impact of RM strategy on Holiday Inn Oxford (appendix. 1). More specifically, this report’s goal is to investigate and evaluates how the company has applied RM concepts. In addition, the report seeks to consider …show more content…
Different and various environmental attributes can affect customers’ consumption decisions such as paying for using facilities or service (Wong and Kim, 2012). Hence, the potential customers might assume to pay a higher price for a better view of the room. According to appendix. 4, this diagram clearly demonstrates that the original price (P2) will increase to a new price (P1) and point move to point B after differential pricing. Eventually, Holiday Inn can gain extra income through better a view of a deluxe …show more content…
The previous section has outlined and demonstrated the core RM tactics (Market Segmentation, Strategic) used by Holiday Inn Oxford, reviewing the various influences by actualizing market segmentation strategy (differential pricing scheme). It is clear from this that market segmentation strategy has caused a crucial influence on organizations’ development. By using Kimes, Wirtz and Bucklin et al. point of view, it has been indicated that the problem of designing fences, price sensitivity and customers’ trust of the organization would appear to have been the most significant feature where might listed the outcome of market segmentation strategy. However, it is hard to measure a hotel customers’ psychological choice of price sets under different business in the real business world. As a consequence, future work need incorporate the instructional elements of real business and research into the study
It is foremost important to define what is meant by Revenue Management (RM). According to a definition provide by Choi and Mattila (2004), RM is a strategic business practice which aiming to trade a relatively fixed amount of inventory such as a room of the most profitable mix of customers in order to maximize profit (Mattila and Choi, 2005). Coincidentally, the core principle of RM is predicting consumers behavior and maximization of profit in order to attain the objective (Cross, 1997).
This report examines the impact of RM strategy on Holiday Inn Oxford (appendix. 1). More specifically, this report’s goal is to investigate and evaluates how the company has applied RM concepts. In addition, the report seeks to consider …show more content…
Different and various environmental attributes can affect customers’ consumption decisions such as paying for using facilities or service (Wong and Kim, 2012). Hence, the potential customers might assume to pay a higher price for a better view of the room. According to appendix. 4, this diagram clearly demonstrates that the original price (P2) will increase to a new price (P1) and point move to point B after differential pricing. Eventually, Holiday Inn can gain extra income through better a view of a deluxe …show more content…
The previous section has outlined and demonstrated the core RM tactics (Market Segmentation, Strategic) used by Holiday Inn Oxford, reviewing the various influences by actualizing market segmentation strategy (differential pricing scheme). It is clear from this that market segmentation strategy has caused a crucial influence on organizations’ development. By using Kimes, Wirtz and Bucklin et al. point of view, it has been indicated that the problem of designing fences, price sensitivity and customers’ trust of the organization would appear to have been the most significant feature where might listed the outcome of market segmentation strategy. However, it is hard to measure a hotel customers’ psychological choice of price sets under different business in the real business world. As a consequence, future work need incorporate the instructional elements of real business and research into the study