The present report deals with the research relating to occupancy and revenue demonstration for measuring and maximizing the same. For the same purpose concept of revenue yield management has been applied. Variable management can be referred as a theory which mainly relates with main variants of customer behaviour i.e. estimation, understanding the requirement and persuading (Duke and et.al. 2014). Further sales technique has been applied for promoting and maximizing the revenue. Lastly, performance indicators have been ascertained for evaluation of success of accommodation sales.
Yield management is a variable pricing theory which is related to the anticipating, influencing and understanding consumer behaviour so that revenue and profits can be maximised (Ivanov, 2014).
|
type |
No. of rooms |
occupancy |
Tariff rate |
total |
% of occupancy |
|
Single room |
75 |
55 |
$100 |
$5500 |
73% |
|
twin room |
60 |
55 |
$120 |
$6600 |
92% |
|
Double room |
80 |
70 |
$150 |
$10500 |
88% |
As the table shows that occupancy of the single and double room are comparatively lower than ideal occupancy. There are so many strategies that the management can apply to maximise revenue and room occupancy. Some strategies are:
In the hospitality industry, generally, thecustomer expects to pay a lower price who book far in advance in comparison to those who book on impulse. By considering this fact management should fix the lower prices for, the earlier bookings. This would help the management of thehotel tomaximise its occupancy level as well as revenue level.
There are also a few different tactics a management can put like knowing the target customer and forecasting demand. Future predictions are adjusted by forecasting tool by making constantly learning from previous practices (Grant, 2016). So by considering this strategy management should focus on the youth as the target area and should frame the packages and tariffs as per their requirement. It is the most important driver of any revenuemanagement to increase the revenue and occupancy level.
It is a critical tool to maximise the occupancy and revenue. The management of hotel should focus on the maintenance of thephysical condition of guest rooms (Johnstonand Marshall, 2016). A proper repair and maintenance plan should also be prepared in order to achieve the desired results.
Internet marketing strategy:
It is considered to be one of the most crucialstrategies whichinvolve ensuring the visibility of the website of Hotel on search engines. Management can do this through a process called search engine optimisation which means the critical marketing updates to the website content, code and link. By applying this strategy Management can also prepare different marketing policies by forming social sites to cover the large market area as it can.
In addition to above strategies, there are also some common strategies the management can go for. For example offer a special rate or discounted rate coupons on multi-night stays, combo offers and seasonal coupons, etc. Management of hotel should also offer negotiated rates subject to the certain requirements and conditions as per the agreement between the different hotels and companies (Farris, Bendle and Reibstein, 2015). By considering the above,additional facts firm can easily fetch desired revenue and occupancy.
Following are the techniques which can be used by the room’s division staff to promote and maximise the revenue of the hotel:
It is a common but tricky yield management technique. It increases revenue generation but sometimes can negatively affect a hotel’s reputation. By considering this technique, management of hotel reservedTotal number of rooms for a certain period of time. In this technique management of hotel will book more room than actually are available (Sainaghi, Phillips and Corti, 2013). Management can anticipate the need of overbooking by making an opportunity cost analysis. It is awidely used strategy in hotel revenue management which can be used to promote and maximise revenue.
It is one of the easy and suitable techniques for the room division staff which can be used to promote and maximise revenue (Aubke and et.al. 2014). By applying this technique staff can ask specific questions such as “what kind of a room are you looking for?” by quoting the full rate plus tax, by Trying to anticipate guest’ needs and offer services, by giving suggestions and assistance.
It is a valuable technique for increasing a hotel’s growth and profitability. For the management, it is not just a tool for increasing profit but also helps to generate customer satisfaction (Ivanov, 2014). By considering this fact management should do the followings:
In order to increase the competitive ability of a hotel, the issue of customer loyalty is also very important to achieve the desired goals (Urraca and et.al. 2015). Toincrease the competitive ability and to obtain a higher number of loyal customers, the management of the hotel should firstly consider the expectations of customers coincide with the offered service quality. By considering this fact management should follow the various tips to maintaining loyalty like last impressions, Understand their guests’ needs, Ask for feedback, remember them, Train their staff, send the right message, Benchmark theirprogress, etc.
There are various strategies for hotels to attract new repeat guests. By considering this technique management can achieve higher occupancy and revenue. The management should go for the following tips in order to retain their customers: by offering free stuff, embrace independent views, by keeping their product and service offering fresh, bymaking special offers to special customers, Publish a valuable newsletter,etc. (Schwartz, Webb and Altin, 2016).
Above techniques will help the management of the hotel to grab the best opportunity available as well as to increase the occupancy and revenue of the hotel.
Forecasting refers to a process which estimates future based data, trends, and opportunities. Forecasting is commonly used for determining the profits and loss of previous year activities. By this aspect, companies can make better managerial decisions in relation to their future strategies (Ivanov, 2014). If the previous year data shows that the strategies being used by the companies were viable and efficient, then the company will undoubtedly follow that procedure. But if the data results were poor then the company will able to detect the strategies they need to improve or modify in order to earn more profit.
Forecasting is a procedure that is engaged in improving the revenue and profits simultaneously. It also includes consideration of loyalty and dedication of the employees’ towards their work. There is a need of appropriate and correct statistical data to register in the information of various enterprises in the hotel business for creating effective and efficient business strategies in order to attain great revenue generation.
The role of forecasting is to estimate the future based data on the basis of theprevious and current year and usually through trend and demand analyzing. It will compare the previous and present data to observe the profits and losses and will assists companies to make viable decisions and proper planning in order to gain more profit(Urraca and et.al.2015). Further, hotel management must observe the demand and need of the customers and make strategies according to these aspects. Hotels must make extra additions to their services such as spa services, visit popular places, etc. to increase its revenue,as this will lead to enhancing the popularity of the hotel particularly at the time of vacations.
Customers with different segments are present in the market; due to this company has to develop strategies for every group of customers to offer thebest satisfaction (Schwartz and et.al 2016). If there is a proper application of forecasting process, then the company will able to predict trends and demands and assists in preventing difficulty occurring from fluctuations of demand.
Conclusion
It can be concluded from the discussions of above report that in case the company is applies the procedure of forecasting in appropriate manner than a certain possibility exist that it will be able to evaluate the trends and requirements of customer. The most significant feature of forecasting is that it can put up changes that can be further developed in the future. The same will assist in resolving the issues relating to fluctuations of demand.
References
Books and Journals
Aubke, F., Wöber, K., Scott, N. and Baggio, R., 2014. Knowledge sharing in revenue management teams: Antecedents and consequences of group cohesion. International Journal of Hospitality Management, 41, pp.149-157.
Farris, P., Bendle, N., Pfeifer, P. and Reibstein, D., 2015. Marketing metrics: The manager’s guide to measuring marketing performance. FT Press.
Grant, R.M., 2016. Contemporary strategy analysis: Text and Cases edition. John Wiley & Sons.
Ivanov, S.H., 2014. Hotel revenue management: From theory to practice.BrowserDownload This Paper.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge.
Sainaghi, R., Phillips, P. and Corti, V., 2013. Measuring hotel performance: Using a balanced scorecard perspectives’ approach. International Journal of Hospitality Management, 34, pp.150-159.
Schwartz, Z., Uysal, M., Webb, T. and Altin, M., 2016. Hotel daily occupancy forecasting with competitive sets: a recursive algorithm. International Journal of Contemporary Hospitality Management, 28(2), pp.267-285.
Urraca, R., Sanz-Garcia, A., Fernandez-Ceniceros, J., Sodupe-Ortega, E. and Martinez-de-Pison, F.J., 2015. Improving hotel room demand forecasting with a hybrid GA-SVR methodology based on skewed data transformation, feature selection and parsimony tuning. HAIS, pp.632-643.
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