Revenue Management
Revenue Management 2012/2013
(FTRD 9001)
In an economic downturn, the task of the Revenue Manager is a challenging one, with a fall in overall demand and ensuing lower prices in the Market Place. Discuss strategies and tactics that may be used to best manage revenue in the current environment.
TABLE OF CONTENTS Summary......................................................................................................................3 1. Introduction ................................................………………………………................ 4
2. Benefits of Revenue Management...............................................................................4
3. Implementation of Revenue Management in the Hotel Industry.................................5
4. Revenue management Tactics in Economic Downturn............................................... 8
5. Conclusion................................................................................................................... 12 6. Recommendation......................................................................................................... 12
Reference ................................................................................................................................ 13 Appendices...............................................................................................................................14
Summary
Revenue management typically involves offering the right price and promotions to achieve desired profits by correctly identifying the customer groups that the company has to serve, establishing the right (quantity of) products and services as well as setting up the prices to be offered to these customers. Therefore, this paper attempts to explain the implementation and tactics necessary to undertake Revenue Management in Economic downturn. The following questions were formulated in
(FTRD 9001)
In an economic downturn, the task of the Revenue Manager is a challenging one, with a fall in overall demand and ensuing lower prices in the Market Place. Discuss strategies and tactics that may be used to best manage revenue in the current environment.
TABLE OF CONTENTS Summary......................................................................................................................3 1. Introduction ................................................………………………………................ 4
2. Benefits of Revenue Management...............................................................................4
3. Implementation of Revenue Management in the Hotel Industry.................................5
4. Revenue management Tactics in Economic Downturn............................................... 8
5. Conclusion................................................................................................................... 12 6. Recommendation......................................................................................................... 12
Reference ................................................................................................................................ 13 Appendices...............................................................................................................................14
Summary
Revenue management typically involves offering the right price and promotions to achieve desired profits by correctly identifying the customer groups that the company has to serve, establishing the right (quantity of) products and services as well as setting up the prices to be offered to these customers. Therefore, this paper attempts to explain the implementation and tactics necessary to undertake Revenue Management in Economic downturn. The following questions were formulated in