TM13 333

Information about TM13 333

Published on January 16, 2008

Author: Raimondo

Source: authorstream.com

Content

Chapter 13 Revenue Management :  Chapter 13 Revenue Management Managing Front Office Operations Seventh Edition (333TXT or 333CIN) Competencies for Revenue Management:  Competencies for Revenue Management Explain the concept of revenue management and discuss how managers can maximize revenue by using forecast information in capacity management, discount allocation, and duration control. Discuss common formulas managers use to measure and manage revenue. (continued) Competencies for Revenue Management:  Competencies for Revenue Management Explain how revenue management decisions are affected by: group room sales, transient room sales, food and beverage activity, local and area-wide activities, special events, and fair market share forecasting. Summarize typical revenue meetings, outline potential high and low demand tactics, discuss four revenue management tactics, and explain how revenue management software aids hotel managers. (continued) Benefits of Revenue Management :  Benefits of Revenue Management  Improved forecasting  Improved seasonal pricing and inventory decisions  Identification of new market segments  Identification of market segment demands  Enhanced coordination between the front office and sales divisions  Determination of discounting activity (continued) Benefits of Revenue Management:  Benefits of Revenue Management  Improved development of short-term and long-term business plans  Establishment of a value-based rate structure  Increased business and profits  Savings in labor costs and other operating expenses  Initiation of consistent guest-contact scripting (continued) Revenue Management Methods :  Revenue Management Methods  Capacity management Balances risks of overbooking against potential loss of revenue from reservation cancellations, early departures, and no-shows  Discount allocation Restricts time period and product mix (rooms) available at reduced or discounted rates  Duration control Places time constraints on accepting reservations in order to protect rooms for multi-day reservations (which represent higher levels of revenue) Revenue Management Formulas :  Revenue Management Formulas  Formula 1: Potential average single rate  Formula 2: Potential average double rate  Formula 3: Multiple occupancy percentage  Formula 4: Rate spread  Formula 5: Potential average rate (continued) Revenue Management Formulas:  Revenue Management Formulas  Formula 6: Room rate achievement factor  Formula 7: Yield statistic  Formula 8: RevPAR  Formula 9: Equivalent occupancy  Formula 10: Required non-room revenue per guest (continued) Potential Average Single Rate:  Potential Average Single Rate Single Room Revenues at Rack Rate Number of Rooms Sold as Singles Potential Average Double Rate :  Potential Average Double Rate Double Room Revenues at Rack Rate Number of Rooms Sold as Doubles Rate Spread:  Rate Spread Potential Average Double Rate  Potential Average Single Rate Potential Average Rate :  Potential Average Rate (Multiple Occupancy %  Rate Spread)  Potential Average Single Rate Room Rate Achievement Factor:  Room Rate Achievement Factor Actual Average Rate Potential Average Rate Yield Statistic Formulas :  Yield Statistic Formulas Formula #1 Actual Rooms Revenue Potential Rooms Revenue Formula #2 Room Nights Sold Actual Average Room Rate Room Nights Available Potential Average Rate Formula #3 Occupancy Percentage  Room Rate Achievement Factor  RevPAR Formulas:  RevPAR Formulas Formula #1 Actual Rooms Revenue Available Rooms Revenue Formula #2 Occupancy Percentage  Average Daily Rate Elements of Revenue Management Strategies:  Elements of Revenue Management Strategies  Group room sales  Transient room sales  Food and beverage activity  Local and area-wide activities  Special events  Fair market share forecasting Revenue Management Meeting Participants:  Revenue Management Meeting Participants  General manager  Sales managers  Catering managers  Reservations manager  Front office manager  Food and beverage manager High Demand Tactics :  High Demand Tactics  Close or restrict discounts  Apply minimum length of stay restrictions carefully  Reduce group room allocations  Reduce or eliminate 6 p.m. holds  Tighten guarantee and cancellation policies  Raise rates to be consistent with competitors (continued) High Demand Tactics:  High Demand Tactics  Consider a rate raise for packages  Apply full price to suites and executive rooms  Select dates that are to be closed-to-arrivals  Evaluate the benefits of sell-throughs  Apply deposits and guarantees to last night of stay (continued) Low Demand Tactics :  Low Demand Tactics  Sell value and benefits  Offer packages  Keep discount categories open  Encourage upgrades  Offer stay-sensitive price incentives  Remove stay restrictions  Involve your staff  Establish relationships with competitors  Lower rates Four Revenue Management Tactics:  Four Revenue Management Tactics  Hurdle rate  Minimum length of stay  Close to arrival  Sell-through Revenue Management Software :  Revenue Management Software Revenue management software provides:  Continuous monitoring  Consistency  Information availability  Performance tracking  Special reports

Related presentations


Other presentations created by Raimondo

Company profile
22. 01. 2008
0 views

Company profile

ussr
09. 01. 2008
0 views

ussr

LISMINA
10. 01. 2008
0 views

LISMINA

floweringplants
12. 01. 2008
0 views

floweringplants

Initial steps in resuscitation
15. 01. 2008
0 views

Initial steps in resuscitation

Arctic impact01
17. 01. 2008
0 views

Arctic impact01

MEGSOverview
14. 01. 2008
0 views

MEGSOverview

Intro to Council
20. 01. 2008
0 views

Intro to Council

CED 353
22. 01. 2008
0 views

CED 353

Rocks 1
14. 01. 2008
0 views

Rocks 1

insulation
28. 01. 2008
0 views

insulation

Tanzania4
28. 01. 2008
0 views

Tanzania4

Dr Rohit Juneja slide show
29. 01. 2008
0 views

Dr Rohit Juneja slide show

Margaret
17. 01. 2008
0 views

Margaret

UoP Crete2007
29. 01. 2008
0 views

UoP Crete2007

mod13
30. 01. 2008
0 views

mod13

Eliot Waste Land
07. 02. 2008
0 views

Eliot Waste Land

Session7Handout
13. 02. 2008
0 views

Session7Handout

The Legend Of Theseus
14. 02. 2008
0 views

The Legend Of Theseus

Globalization Debate Milanovic
20. 02. 2008
0 views

Globalization Debate Milanovic

Ozone and Climate FINAL
21. 02. 2008
0 views

Ozone and Climate FINAL

Portfolio Shaun Parker website
25. 02. 2008
0 views

Portfolio Shaun Parker website

style lecture
04. 02. 2008
0 views

style lecture

Mozart
03. 03. 2008
0 views

Mozart

Paris Declaration Presentation
05. 03. 2008
0 views

Paris Declaration Presentation

egf2007 reportG5
14. 02. 2008
0 views

egf2007 reportG5

èèä1
14. 04. 2008
0 views

èèä1

Boyadjian 1
15. 04. 2008
0 views

Boyadjian 1

BBC Global Indian
17. 01. 2008
0 views

BBC Global Indian

Hellas presentasjon
17. 04. 2008
0 views

Hellas presentasjon

202 webslides U of T 06
22. 04. 2008
0 views

202 webslides U of T 06

6 20 06net Provid COIv24
22. 04. 2008
0 views

6 20 06net Provid COIv24

group162005
24. 04. 2008
0 views

group162005

THSB04 documentation
07. 05. 2008
0 views

THSB04 documentation

Qalo
08. 05. 2008
0 views

Qalo

Liechti02 images
11. 01. 2008
0 views

Liechti02 images

iw3htp4 03
20. 02. 2008
0 views

iw3htp4 03

Maskevich
02. 05. 2008
0 views

Maskevich

NYSLSJAN2007INTERMED IATE
23. 01. 2008
0 views

NYSLSJAN2007INTERMED IATE

seniors
13. 01. 2008
0 views

seniors

MISR images July2004
13. 02. 2008
0 views

MISR images July2004

SimulatorsOverview
18. 02. 2008
0 views

SimulatorsOverview

CARBOSEN presentation1
12. 02. 2008
0 views

CARBOSEN presentation1

holcimpres
11. 02. 2008
0 views

holcimpres

envimpact
22. 01. 2008
0 views

envimpact

Turing2
22. 01. 2008
0 views

Turing2

2007 Regional ILC 4 07
11. 01. 2008
0 views

2007 Regional ILC 4 07

pres113
07. 03. 2008
0 views

pres113