Revenue Management

WHAT IS REVENUE MANAGEMENT?
How to sell the right product (service and space) to the right
* customer (individual, group or catering) at the right time (for each
* segment's booking window) for the right price tomaximize total hotel profitability through the proper allocation, pricing of roomsand space inventory for the transient, group and catering demand segments. Cross, R (1997) Revenue Management: Hard-core Tactics for Market Domination

LIFE BEFORE REVENUE MANAGEMENT ERA
* Flat rate all year round IIE
* No inventory controlling (open for all market segment anytime)
* No risk & opportunity anticipation '
* Easy market competition @
* Forecast demand by feelings
* No disparity rate?

REVENUE PER AVAILABLE
RevPar isa very classic KPl and regarded as one of the most important financial calculations for any hotel to see how much revenue they have made within a certain
period of time. When an analysis is carried out,
RevPar figures can be compared to RevPar of
the hotel during the same time frame of the
previous years or to its compset.

HOTEL MARKET SHARE
Morket share is a common practice in any
industry to measure our company
successfulness. In hotel industry we can
benchmarking our performance with other
hotel who had similar target market and
potentially stealing our market.
There are 3
metrics to be measure: MPI, ARI, and RGI
Market Penetration Index Formula:
* MPl = Hotel c /Market % Occ
* Average Rate Index Formula:
ARI = Hotel ARR /Market ARR*
* RevPAR Generation Index Formula:
RGI = Hotel RevPar / Market RevPAR
*Aggregate ARR

INVENTORY AUTHORIZATIONS
Inventory Authorization is a method to control
and authorize specific market segment
bookings in the specific periods based on
forecast demand.