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Hotel room revenue management and outlook

Author: XuJianJun
Tutor: ChiJin
School: Huaqiao University
Course: Tourism Management
Keywords: Revenue management Hotel pricing Room overbooking Room inventory control Hotel forecasting
CLC: F224
Type: Master's thesis
Year: 2006
Downloads: 554
Quote: 7
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Hospitality industry is facing dynamic uncertain market demand, but its limited capacity and perishable product make it cannot like other industry deel with demand by its storage. Price is the only method that hotel manager can adopt.With increasingly intensive competition and homogenous product in hotel industry, price is the weapon that can attract customers. Lower price can fill empty rooms and increase room rate however, it also lower average day rate (ADR) and total revenue. Hotel involve in dilemma of ADR and room rate.Like a light in the morning, HRM can help hotels solve the problem. It maximize hotel revenue though price discrimination. As the famous RM researcher Robert Crossing written in his book‘Revenue management-hardcore tactics for market domination’:RM can increase 3%-7% revenue for corporation in no increase inputs that is means 50%-100% profit improved.Economic Marketing and Mathematic methods are be used when analyse the problem that hotels meet daily.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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