Armedilla, Maria Zenda Alexandra

Bolaños, John Ranel

Rodrigueza, Elyssa Jean

BSHM202C

● Importance of Demand Management program in the Hospitality Industry.

➢ The significance of Demand Management in the Hospitality industry is that it lets a

certain establishment/company forecast and plan how to satisfy the customers’

demand. Also, not only making excellent accommodations and service but good

demand management is one of the most crucial keys for achieving successful business.

In this way, not only it affects the business’ overall operation like avoiding overstocking,

organized inventory, vision and attitude but also it reflects into finer and smaller details

that every guest/customer’s experience is an unforgettable and memorable one.

➢ In demand management it consists of a lot of aspects that need a length of time;

wherein it needs planning, where a hotel or the business is in the construction stage.

Knowing your target market of the hotel, the tastes, likes and dislikes of the target

markets, competitions and the potential customers as well as knowing how the hotel will

look and its ambiance. Another aspect is maintaining a good relationship between a

guest and an employee, like answering their queries about a specific product, fulfilling

their request, and etc,. A business can also benefit from the word of mouth, like

recommending the hotel through a friend or relatives and making a blog/ vlog about the

hotel and rating and writing feedback about it. Also, offering guests that keeps on

coming back a loyalty card, incentives such as discounts and promotional offers.

● Benefits of implementing a demand management program in the hospitality industry

➢ Suppliers Pricing

➔ This is when the business is stable and with a strong business relationship

between the supplier and the business gains loyalty and trust. Creating good
 communications with your suppliers and treating them as partners can lead to

decreased risks, enhanced collaboration and innovation and higher success.

➢ Inventory costs & Reduction of excess inventory

➔ It helps hoteliers better understand the industry, market trends, and pricing

across demographics, needs, and other factors. These features further enable

hotels to develop and map customer journeys that promote sales.It leads to

significant reduction in costs and also helps continuous evaluation and

improvement in the buying process. It could increase the product range or

perhaps reduce it too, because of intensive market research undertaken.

➢ Focus on profitability

➔ The integration of demand management into the supply chain turns the focus

onto customers and meets their needs while maintaining profit margins. The

focus on profitability often leads organizations to streamline their processes and

develop flexibility and fluid scheduling to respond to market fluctuations.

➢ Improvement of product forecasting

➔ This can assist the business’s forecasting in an accurate and also predicting the

revenue of the company. With this, it can help avoid the losses to the business.

➢ Cash flow

➔ The in and out flow of money in the business. Controlling and operating the

business’s expenses and daily operations can lead to a positive cash flow where

it can indicate that the business’ assets are leveling up / increasing.

➢ Word of mouth publicity

➔ This can be achieved either by referring or recommending the hotel to a friend or

relative. It can also be through social media by giving your reviews on an online

blog or by their website page.

● Why there is a need for demand management in the supply chain management of the

hospitality industry.

➢ It is needed in the hospitality industry for demand management and is one of the most

useful tools used by businesses nowadays. Understanding and knowing the process of

it can lead you to satisfying the demands of the guests as well as the suppliers and

other parts of the businesses.

➢ Demand management plays a key role in the success of all the businesses in the

hospitality industry. This focused on predicting customer demand and determining how

the demand can be synchronized with the capabilities of the supply chain.

➢ Demand management aims to assist businesses in improving inventory levels,

improving customer service, enhancing trade and promotion planning, and improving

inventory planning. Demand management is far more reliable than creating a demand

or sales forecast.