What is revenue management process?

1. What is revenue management process?

2. In general, revenue management is employed mostly in the hospitality industry. Hotel owners, in particular benefit from this practice, because they are able to sell the right room to the right person at the right time and most importantly, at the right price. This makes it possible for the business owners in the hospitality industry to predict the demand and maximize their profit, with respect to pricing. The procedure is basically what is done in business analytics. 1. History of Revenue Management: The revenue management system was first introduced in the airline industry. Later on, it was followed by the hotels industry and thus the system of revenue management became an integral part of the hospitality industry. Today the hotel revenue

3. management consultingis followed by all hotels around the world. 2. Purpose of Revenue Management: Basically, the main purpose of implementing the strategies of revenue management is to optimize the profits and enhance the revenue that the business earns. 3. Benefits of Revenue Management: Today a number of enterprises in the hospitality industry follow the revenue management system for the number of benefits it offers, which include: A. It allows the business owners to quote competitive prices, which ensures profitability B.It offers the businesses, ability to understand the customers and their needs C.Complete market analysis is provided by the company that is engaged by businesses.

4. D. All the activities within the different sections of an organization is visible and is known by the business owners. 4. Elements of Revenue Management: Effective application of revenue management strategies result in high returns and reputation. However, such application is possible only if it involves a number of elements that include: Market segmentation  Booking patterns based on demand history  Prediction of demand  Management of pricing  Equitable distribution of resources Revenue Management in Hotel Industry: The procedure of hotel revenue management company is a continuous process conducted by the

5. hospitality industry. The revenue management in hotel industry helps the hotel industry to gauge the bookings and thereby the earnings of a particular season and help them to plan accordingly. Some of the factors on which the hotel revenue management services involve include:  Strategizing the number of rooms available  Formulating the price and ensuring that it is competitive  Gauging the demand or the prediction of demand. Role of the Revenue Manager: The role of a revenue manager is quite integral to the business and its revenue management services. It is the responsibility of the manager handling the revenue management services in a business to use the data to decide the pricing and formulate

6. business strategy. Compilation and analysis of data gathered from the market, and set the costing for high returns. Today, with a number of revenue management consulting firms, the work of revenue management is handed over to various consultants who are experts in the field of revenue management and who implement a number of highly effective revenue management strategies to ensure profits. The utilization of revenue management elements is an assurance to the businesses that their business is likely boom and surge.