Revenue Management

Today’s hospitality landscape is more competitive and more complicated than ever before. With revenue management’s recognized contribution to the industry and the majority of hoteliers employing revenue management as part of their overall hotel discipline now is the time to focus on core competencies that incorporate both strategic and tactical skills and initiatives. The paper presents a literature review of the key concepts of hotel revenue management (RM) and current state-of-the-art of its theoretical study. The article emphasizes on the different guidelines of hotel RM research and is structured around the elements of the hotel RM system and the phases of RM procedure. The elements of the hotel RM system discussed in the paper include hotel RM centers such as room division, F&B, function rooms, spa & fitness facilities, golf courses, casino and gambling facilities. It touches on data and information, the pricing - price discrimination, dynamic pricing, lowest price guarantee and non-pricing - overbookings, length of stay control, room availability guarantee as well as RM tools, the RM software, and the RM team. The stages of RM process have been recognized as goal setting, assortment of data and information, data analysis, forecasting, decision making, implementation and monitoring. Furthermore, special attention is paid to ethical contemplations in RM practice, the connections between RM and customer relationship management, and the legal aspect of RM. Lastly, the article outlines future research perspectives and discloses potential evolution of RM in future.
Revenue management is an essential tool for corresponding supply and demand by dividing customers into different sectors based on their purchase purposes and allocating capacity to the different segments in a way that maximizes a particular company’s revenues. RM is the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right price at