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What is Revenue

Management?

 The goal of this presentation is forthe learner to understand the

purpose of, and processesinvolved with revenue

management.

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Lesson Objectives

fter completing this lesson thelearner will be able to!

"#$plain the role of the revenuemanager.

"%e&ne the ' meeting basics.

"#$plain strategies to ma$imi(erevenue.

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What is RevenueManagement?

" )impl* stated, it is a techni+ue used toma$imi(e revenues.

" Other terms used are *ield management.

" t should ta-e into consideration as man*factors as possible to determine the rate.

" t also is useful as an evaluative tool todetermine standards for which actual results

can be compared.

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Wh* do hotels need RevenueManagement?

" To improve revenue be*ond transientrooms revenue

"mprove communications amongrevenue generating departments

"dentif* the most productive channels ofdistribution /both room nights and rate0

"#stablish clear roles and responsibilitiesamong sta1 

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 The Role of RevenueManager

"2ocal point of the revenuemanagement function

"3eep trac- of propert*4s competitiveposition Rev5ar

"Mange channel distribution process

"mpartial manager guides revenue

generating process

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Revenue Management Tools

"Revenue Meeting

"#$ternal Reports

"nternal Reports /histor*, forecasts,

boo-ings, and budgets0"6ompetitive )urve*s

"nternet

"7%)

"6all arounds")trategies and Tactics

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 The Revenue Meeting

"5urpose

"dentif* revenue opportunities for thepropert*

"8eld at a fre+uenc* e+ual to the boo-ingpace of the hotel

"ttendees

"7M, Rev. Manager, %O), )ales and 6ateringmanagers, Res. Manager, 6ontroller

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 The Meeting 9asics

:. )tart with discussion of m;t;d occupanc*,%R, Rev5ar against budget and forecast

<. 9ring accurate =; or > da* forecast

>. 5eriodic review of rolling :< month forecast@. nvite an* sta1 member who can bloc-

revenue opportunities

A. 8ave histor* used to ma-e of the forecasts

notes, 5M) and 6R) reports

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 The Meeting 9asics

B. %iscuss current sales leads

=. %iscuss pea-s and valle*s of

business along with strategies toimprove outloo-

C. nclude boo-ing pace report

'. 9e sure ever*one is prepared andread* to participate

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Rev5ar

"6alculation

" Total roomsrevenueD total

rooms availableOr

"%R multiplies b*the Occupanc* E

Roomsvailable

>A

Occ. E CA TotalRevenue

FC=,

%R F<':.'ARev5ar F<@C.A=D

<@=.C>

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#$ternal Reports

")tar Reports

"5rovided b* )mith Travel Research

")how4s relative position of propert*against Gcompetitive setH

")hows Rev5ar penetration

"s historical data")mith Travel Research

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nternal Reports

"8istor* last < *ears

"2orecasts = and > da*

"5M)"9oo-ing 5ace

"6hain or 5ropert* RevenueManagement

"9udget

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6ompetive )urve*s

"7lobal %istribution )*stems /7%)0

"8ow are *ou positioned?

"8ow are *our competitors positioned?

"What rates are available?

")tarwood 7%) information

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)trategies to Ma$imi(e Revenue

"What 6hannels to use

"8ow will *ou position the propert*

"Routinel* review propert*information in all channels /monthl*0

"%etermine best mi$ of group and

transient"%etermine mi$ of catering

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)trategies /6ontinued0

")et a G8urdle RateH and communicate it to allrevenue producing departments

"%iscount management

"Minimum length of sta*"G)ell;ThruH

"Length of sta* rate sensitivit* /tiers0

"6losed to arrival

"%etermine total revenue potential of business