Revenue Management Techniques in Hospitality Industry –
Introduction to Hospitality Industry
The hospitality industry is part of a larger enterprise known as the travel and tourism industry. It is one of the oldest industries in the world. In early days, traders, explorers, missionaries and pilgrims needed a break in their journeys requiring food, shelter and rest. People opened their homes and kitchens to these weary travellers, and an industry was born. Although accommodation today is varied and their services have changed and expanded over the ages, one thing about the hospitality industry has remained the same, guests are always welcome! From a friendly greeting at the door, room service, breakfast, to a host of facilities' the hospitality industry offers travellers a home away from home.
Hospitality is defined as “the friendly reception and treatment of strangers". For most people, hospitality means entertaining guests with courtesy and warmth. Hospitality is also an industry made up of businesses that provide lodging, food and other services to travellers. The main components of this industry are hotels, motels, inns, resorts and Restaurants.
In a broad sense, the hospitality industry might refer to any group engaged in tourism, entertainment, transportation or lodging including cruise lines, airlines, railways, car rental companies and tour operators.
However the two main segments are the lodging industry also called the hotel industry, and the food and beverage industry, also called the restaurant industry. The lodging industry is made up of businesses providing temporary housing, and such a business is called a lodging establishment and the people who stay in it are called guests or clients.
What is Revenue Management?
Revenue Management is a technique to optimize the revenue earned from a fixed, perishable resource. The challenge is to sell the right resources to the right customer at the right time.
Revenue Management implements the basic principles of supply and demand economics in a
The hospitality industry is part of a larger enterprise known as the travel and tourism industry. It is one of the oldest industries in the world. In early days, traders, explorers, missionaries and pilgrims needed a break in their journeys requiring food, shelter and rest. People opened their homes and kitchens to these weary travellers, and an industry was born. Although accommodation today is varied and their services have changed and expanded over the ages, one thing about the hospitality industry has remained the same, guests are always welcome! From a friendly greeting at the door, room service, breakfast, to a host of facilities' the hospitality industry offers travellers a home away from home.
Hospitality is defined as “the friendly reception and treatment of strangers". For most people, hospitality means entertaining guests with courtesy and warmth. Hospitality is also an industry made up of businesses that provide lodging, food and other services to travellers. The main components of this industry are hotels, motels, inns, resorts and Restaurants.
In a broad sense, the hospitality industry might refer to any group engaged in tourism, entertainment, transportation or lodging including cruise lines, airlines, railways, car rental companies and tour operators.
However the two main segments are the lodging industry also called the hotel industry, and the food and beverage industry, also called the restaurant industry. The lodging industry is made up of businesses providing temporary housing, and such a business is called a lodging establishment and the people who stay in it are called guests or clients.
What is Revenue Management?
Revenue Management is a technique to optimize the revenue earned from a fixed, perishable resource. The challenge is to sell the right resources to the right customer at the right time.
Revenue Management implements the basic principles of supply and demand economics in a
References: Defining Revenue Management- Barb Bowden Peabody Hotels Front Office Operations – by Michael Casavana. Karvy Consultant Services. www.karvyglobal.com Maharashtra Tourism and Development Corporation Principles of Hotel Front Office Operations – by Sue Baker, Pam Bradley & Jeremy Huyton