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    Maximo Tibursyo
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    Revenue management is a 5-step process used in the hospitality industry to maximize profits. The 5 steps are: 1) gathering data on offerings, customers, calendars, markets and history; 2) segmentation to group customers with similar needs; 3) forecasting using historical data; 4) decision making and optimization to plan customer targeting; and 5) dynamic re-evaluation to improve performance. Revenue management helps hotels sell the right room to the right customer at the right price and time through the right channel. It has grown in importance for the hospitality industry since the 1970s as a way to foster collaboration, know customers, segment markets, price competitively, and eliminate manual processes.

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    Revenue management is a 5-step process used in the hospitality industry to maximize profits. The 5 steps are: 1) gathering data on offerings, customers, calendars, markets and history; 2) segmentation to group customers with similar needs; 3) forecasting using historical data; 4) decision making and optimization to plan customer targeting; and 5) dynamic re-evaluation to improve performance. Revenue management helps hotels sell the right room to the right customer at the right price and time through the right channel. It has grown in importance for the hospitality industry since the 1970s as a way to foster collaboration, know customers, segment markets, price competitively, and eliminate manual processes.

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    © All Rights Reserved
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    7 views30 pages

    Group 1 RevMan

    Uploaded by

    Maximo Tibursyo
    Revenue management is a 5-step process used in the hospitality industry to maximize profits. The 5 steps are: 1) gathering data on offerings, customers, calendars, markets and history; 2) segmentation to group customers with similar needs; 3) forecasting using historical data; 4) decision making and optimization to plan customer targeting; and 5) dynamic re-evaluation to improve performance. Revenue management helps hotels sell the right room to the right customer at the right price and time through the right channel. It has grown in importance for the hospitality industry since the 1970s as a way to foster collaboration, know customers, segment markets, price competitively, and eliminate manual processes.

    Copyright:

    © All Rights Reserved
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    of 30

    Introduction

    to Revenue
    Management
    By: Group 1
    Overview
    5 Main Steps in Revenue
    Management

    Importance in Hospitality
    Brief History
    Industry

    Definition of Revenue
    Advantages
    Management

    Common Factors to be
    analyzed
    Objectives
    To better understand what revenue management is
    and its common factors.

    Familiarize and apply the 5 main steps and know


    the advantages of revenue management.

    To distinguish its importance in the field of


    Hospitality industry and analyze its connection
    with different fallacies.
    ICE
    BREAKER
    AFENCSRTIGO
    FORECASTING
    NSKU
    SCOT
    CALFAYL
    SUNK
    COST
    FALLACY
    TIEVNRONY
    INVENTORY
    UNVEEER
    MGRNAEA
    REVENUE
    MANAGER
    G ERATT
    KMTRAE
    TARGET
    MARKET
    BRIEF
    HISTORY
    The origins of revenue management can be traced back to the
    airline industry in the 1970s.
    In the 1980s, hotels began to adopt revenue management
    techniques
    The adoption of revenue management systems in the hotel industry
    was slow at first, but technological advancements in the 1990s
    helped to speed up the process.
    The rise of online travel agencies (OTAs) in the early 2000s marked a
    significant turning point for revenue management in the hospitality
    industry.
    Today, revenue management systems have become an essential
    component of hotel operations.
    WHAT IS
    REVENUE
    MANAGEMENT?
    REVENUE
    MANAGEMENT
    The art of selling the right
    product to the right customer
    at the right time for the right
    price through the right channel.
    WHAT SERVICE WHAT IS THE
    SHOULD BEST MIX?
    YOU SELL?
    Revenue

    Management
    WHO IS YOUR
    TARGET WHAT DO THEY
    CUSTOMER? REALLY VALUE?

    WHAT THEY WANT? PAY MORE FOR?


    Revenue
    Management
    DIFFERENT
    CUSTOMERS? WHEN IS THE IDEAL

    TIME TO SELL?

    Common Factors
    1 Price Marketing
    3

    2 Inventory 4 Channels
    STEP 1: GATHERING INFORMATION (DATA COLLECTION)
    Know your offerings
    Know your customers
    Know your calendar
    Know your market
    Know your history

    STEP 2: SLICING AND DICING (SEGMENTATION)


    It is the process of dividing a company's target market
    into groups of potential customers with similar needs
    and behaviors.

    STEP 3: SEEING THE FUTURE (FORECASTING)


    Forecasting is the process of using historical data to
    predict future events.
    STEP 4: PLANNING AND EXECUTING (DECISION-MAKING AND
    OPTIMIZATION)
    This is where we decide what we will be doing in the
    business in terms of customers, competitors and
    business offerings.

    STEP 5: ITERATING (DYNAMIC RE-EVALUATION)


    There is always a cycle in revenue management and it
    is important to learn what worked, what didn’t and
    most importantly why.
    Importance of Revenue
    Management in Hospitality
    Industry
    To have access for the right
    tools and data

    Can make strategic


    adjustments

    "Selling the right room to the right client at the


    right moment at the right price on the right
    distribution channel with the best commission."
    Advantages of Revenue Foster collaboration
    Management 4

    Know your customers’ Eliminate manual


    1 expectations 5 processes

    Integrate technical
    2 Segment the market 6 solutions

    3 Price competitively
    PROFIT FALLACY

    Remember...

    Buyers seek a profit as much as sellers. In a


    transaction, both the buyer and seller should gain, it
    should be a win-win situation for the both of them
    RETURN ON INVESTMENT
    Basically, return on
    Performance measure used to investment (ROI) tells you
    evaluate the efficiency or profitability how much money you've
    of an investment or compare the made (or lost) an
    efficiency of a number of different investment or project after
    investments. accounting for its cost.

    SUNK COST FALLACY

    Way of thinking that occurs when we The Psychology behind


    believe that we have invested so much the sunk cost fallacy
    in something that we must see it
    through to the end, regardless of A desire to not
    whether or not it is actually in our best appear wasteful
    interest. Loss aversion

    Thank You
    for your participation

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