MASTER OF BUSINESS ADMINISTRATION

VIT BUSINESS SCHOOL

PRICING AND REVENUE MANAGEMNT & HOSPITATILITY

INDUSTRY

SUBMITTED BY,

P S APOORVA 22MBA0013
B SWATHY 22MBA0035
NIKITHA 22MBA0065
MOHAMED KAIF N 22MBA0209

GUIDED BY:
DR. AKANKSHA SINGH
VITBS, VIT VELLORE
JANUARY, 2024

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 ACKNOWLEDGEMENT

We wish to express my gratitude towards VIT for being a part of such a learning
experience, which will surely enhance our knowledge and skills. We are grateful
to Professor Dr. Akanksha Singh for her invaluable guidance and cooperation
during the project. She provided his assistance and support whenever needed
that has been instrumental in the completion of the project. We would like to
thank all the other teachers who have guided us in various phases with their
valuable suggestions towards completing the project. Then we would also want
to thank all our respondents who have helped us in data collection process. The
project has been a great experience, the learning, and the exposure we got
through this project were immense and surely will help us in our future pursuits.

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SL. NO TOPIC PAGE NO:
1 CHAPTER -1 4
INTRODCTION
1.1 OBJECTIVE 8

1.2 PURPOSE 8

2 REVIEW OF 9-12
LITERATURE
3 RESEARCH 13
METHODOLOGY
3.1 LIMITATIONS 14

4 CHAPTER – 4 15-28
IMPACT, PROCESS &
STRATERGIES
4.1 IMPACT 16-17

4.2 PROCESS 17-18

4.3 STRATERGIES 18-28

5 CONCLUSION 29

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 CHAPTER I
INTRODUCTION

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 1. INTRODUCTION
Modern revenue managers understand, anticipate, and react to market demand
to maximize their businesses’ revenues. They often do so by analysing,
forecasting, and optimizing their fixed, perishable inventory, and time-variable
supply, through dynamic prices. Hence, the objective of pricing and revenue
management is to stimulate demand from different customers to earn the
maximum revenue from them. The essence of this discipline is to understand the
customers' perceptions of value and to accurately align the right products to
each customer segment. Therefore, this chapter suggests that revenue
management systems combine data mining and operational research with
strategy. Essentially, this involves maximizing revenue from a combination of
high-yield and price-sensitive customers; as these systems are intended to
reduce seat spoilage and to increase load factors; thereby filling excess capacity.
Moreover, these systems also manage overbooking, and are intended to
minimize denied boarding.

Hotel revenue management is the strategic distribution and pricing tactics used
to sell perishable room inventory to the right guests at the right time to boost
revenue growth. Other products such as hotel amenities and food and beverage
offerings will also form part of the strategy. Revenue management revolves
around measurement of what customers from different audience segments are
willing to pay. This can only be done by measuring and monitoring the supply
and demand of your hotel rooms. It involves the use of data and analytics to
help you keep track of supply and demand so you make predictions on
consumer behaviour. This then allows you to make informed decisions on what
accommodation to promote to the right client, at the right time, with appropriate
pricing through the most suitable distribution channel.

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Now, more than ever, revenue management is the cornerstone of running a
successful and profitable hotel. The growth of data that is now readily available
as well as the ways to track and analyse it provides a wealth of new
opportunities for your business to turn a profit.

The most successful hoteliers are savvy operators who continually look for
ways to learn and improve the way they do things, gaining an edge over the
competition. Yet, only a small percentage of independent hoteliers use revenue
management strategies and thus limit their revenue-generating potential. he
primary purpose of revenue management for your hotel is to optimise both room
occupancy and the average rate paid for each room, ensuring maximum total
revenue. This is achieved by selling the right room to the right guest at the right
time for the right price.

There are many ways you can approach this, from motivating guests to book
directly to offering purchase extensions, up-sells, or extras as well as
encouraging guests to become a return visitor. Remember, the best strategies
and techniques are based on the understanding that hotel pricing is fluid and can
change from one day to the next. This is a key reason why you should never be
afraid to increase your rates, and this may be surprising, but customers expect
increases over time. Most businesses where consumers spend money, have
varying prices based on demand, supply and shifts in costs.

Depending on the circumstances and market conditions, we have experienced in

our portfolio a revenue increase of anywhere between 5-20% YoY. The prior
time invested, technology used and market performance always have a strong
impact on the revenue increase as well, but overall, the uplift in revenue and
profitability of using revenue management are considerable. Also considering
that there is not any increase in marketing spend.

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Now if revenue management is so important and profitable for hotels, why don’t
all industries use it? Well, the truth is, to be able to optimize revenue and use the
practices, there are several conditions that need to be met:

 You need segmented markets, there must be differentiation in the

customer types.
 You need a fixed capacity, which means that you have a limited number
of inventories to sell. Take the example of a hotel. No matter how much
demand it has, you can only sell each day the number of rooms you have,
never more.
 It needs to have perishable inventory. Continuing with the previous
example, let’s say a hotel has 200 rooms. If 50 of those are not sold today,
that hotel will never be able to sell those 50 rooms again. That potential
revenue is lost. And this happens every single day of the year.
 Following that we have low marginal servicing costs. Which basically
means that businesses that benefit from revenue management tend to have
a high fixed cost and low variable cost. Essentially because it implies that
we can strategize around demand without too much concern for high
variations of cost.
 The booking requests are made in advance of the day of arrival. Guests
are booking their stay several months, weeks, days or hours ahead of the
time that they arrive.
 Uncertain demand forecast. Guest demand varies by season, day of week
or even time of day, which allows you to strategize differently for each
one of these.

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1.1 OBJECTIVES

 To optimize revenue by setting prices that balance supply and demand,

ensuring the highest possible income for the property.
 To attract guests during low-demand periods, maximizing occupancy and
overall revenue.
 Set prices that are competitive within the market while maintaining
profitability and perceived value.
 Tailoring pricing strategies to different customer segments, considering
factors like loyalty, demographics, and booking behaviour.

1.2 PURPOSE OF THE STUDY

Understand how effective pricing strategies can contribute to increased revenue

and profitability for hospitality establishments and to explore methods to
streamline revenue management processes, ensuring they are efficient and
aligned with overall business goals. Also, to investigate ways to gain a
competitive edge by implementing innovative pricing strategies that attract
customers and enhance market positioning and examine how pricing strategies
impact customer satisfaction, ensuring that guests perceive value for money and
have positive experiences.

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 CHAPTER – II
REVIEW OF LITERATURE

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Hill (1992), proposed a method to avoid stock-out by
intra-organizational/departmental stock transfer to meet the end demand.

Van Delft and Vial (1996), dealt with a stock-out situation of a product that is
subjected to fast obsolescence and showed the case as an incentive for savings
of holding cost.

Gallego and Moon (1996), investigated a stock-out problem with multi-item

and single-facility location.

Andersson and Melchiors (2001), discussed an inventory problem of lost sale

with single warehouse and multi-retailer. They applied heuristics to optimize
lost sales and find optimal base-stock policy.

Thomas and Griffin (1996), worked on improvement of performance for a

system by coordination among members of a supply chain.

Goyal and Gupta (1989), reviewed all integrated inventory models with
coordination issues among all members of a supply chain. Although the above
research-ers applied different methods to avoid stock-out, we adopted
outsourcing to avoid stock-out condition.

Ng etal. (2001), developed a model to manage the stock-out situation from an

alternative source, which results in a higher cost due to higher transportation
costs.

Huiskonen and Pirttila (2002), studied different forms of lateral coor-dination

mechanisms in a logistics outsourcing relation-ship between two di fferent
organizations.

Chu etal. (2004), addressed a capacitated dynamic lot-sizing problem for a

single item where cases of backlog or stock-outs were taken care of by
partial/complete outsourcing to minimize the total cost.

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Aggarwal and Singh (2019), provided an integrated supply chain configuration
model with third-party logistics based on net present values.

Castellano and Glock (2021), developed an average cost formulation of lot-

sizing model while considering only those costs varying with the inventory
level in the warehouse.

Agrawal etal. (2020), developed a pricing and lot-sizing policies modelling

framework for products with demand under Veblen e ffect. It is an abnormal
market behaviour where consumers purchase the higher-priced goods whereas
similar low-priced (but not identical) substitutes are available.

Sinha and Sarmah (2007), developed a coordination model to overcome

stock-out against insufficient production capacity for a two-stage
manufacturer/customer network.

Cherbaka and Meller (2008), modelled a sourcing deci-ions problem as a

multi-dimensional knapsack problem (MKP) and extended it to include an
outsourcing element where, in addition to the decision of what parts to in-
source, parts currently in-house are considered for outsourcing. The selection is
based on maximizing the value of the selected parts while remaining within the
plant's capacity.

Ma and Zhang (2008), investigated the problem of sourcing decision and dealt
with procurement issues in the presence of uncertain demand and volume
discount in addition to quantity discount.

Wu and Chien (2008), developed an integrated strategic decision-modelling

frame-work for semiconductor assembly outsourcing with Mixed-Integer Linear
Programming of order allocations subject to production considerations, cost,
delivery, and quality.

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Kim etal. (2017), extended the manufacturer’s supplier network configuration
problem with multiple product and multiple suppliers. They formulated the
problem as single-objective mixed-integer non-linear programming (MINLP)
and solved using GAM solver. However, they did not consider lead time for
supplier selection.

Handley and Benton (2009), investigated salient elements of the business

outsourcing, such as strategic evaluation, contractual completeness, and
relationship management practices.

Handley and Benton, 2013, analysed dyadic data on 102 outsourcing

relationships using hierarchical linear regression (HLR). Their study identifies
key complexity factors of outsourcing that have a meaningful impact on control
and coordination costs. However, they did not investigate managerial practices
that can mitigate the negative effect of these tasks and location-specific
characteristics.

Wang etal. (2013), demonstrated the potentials for cost-effective capacity

planning and outsourcing and applicability of fuzzy theories by formulating a
fuzzy multi-objective linear programming model for a specific Mold-
manufacturing case.

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 CHAPTER – III

RESEARCH METHODOLOGY

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Research is a systematic method of finding solutions to problems. It is
essentially an investigation, a recording, and an analysis of evidence for the
purpose of gaining knowledge.

According to Clifford Woody, “Research comprises of defining and redefining

problem, formulating hypothesis or suggested solutions, collecting, organizing
and evaluating data, reaching conclusions, testing conclusions to determine
whether they formulated hypothesis.”

The study relies on Secondary data which was collected from sources such as
academic journals, government reports, industry publications, databases, or any
other relevant repositories. The data was obtained through online databases,
libraries, archives, and other means.

3.1 LIMITATIONS

 Reliability issues may arise if the original data sources were not
systematically designed to meet the specific needs of revenue
management analysis.
 Pricing trends, customer preferences, and market dynamics change
rapidly, and reliance on outdated data may result in suboptimal revenue
management strategies.
 Incomplete data can limit the ability to make accurate predictions and
implement effective pricing strategies.
 Differences in service offerings, customer demographics, and location-
specific factors may not be adequately represented in homogenized data.

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 CHAPTER – IV

IMPACT, PROCESS AND STRATERGIES

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4.1 KEY ELEMENTS THAT IMPACT REVENUE MANAGEMENT IN
HOTELS

Revenue management has long been a relatively straightforward practice,

although most revenue managers will argue that it does not mean it’s simple.

Here are the key elements that impact revenue management in hotels:

1. BIG DATA

With the growth of big data, it is now easier than ever for your hotel to
understand their market. Information like your competitor set, historic prices,
regional price trends, and much more are now available on demand. Advances
in revenue management technology have also seen the introduction of more
sophisticated measures of a hotel’s performance.

2. THE GROWTH OF META SEARCH

While it’s difficult to pinpoint a specific reason for this erosion of margins, we
can identify some contributing factors. Firstly, the growth of metasearch,
initially touted as a way for hotels to win more direct business from OTAs, has
generally proved more lucrative for OTAs than hoteliers. CPC-style (cost-per-
click) metasearch channels are often difficult for independent hotels to use
optimally, whereas OTAs can dedicate resources specifically to global CPC
management. This means that it is generally easier for OTAs to bid optimally,
and hotels will either overspend or underperform.

3. RMS TECHNOLOGY

There has also been a relatively slow uptake of new revenue management
system (RMS) technologies by OTAs. Only a handful of OTAs, for example,
can fully support full-pattern length of stay (FPLOS) pricing, a lynchpin of
revenue management in systems like IDeaS. As long as most OTAs in the
market are using cached pricing, hotels like yours will continue to be unable to

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leverage more advanced, demand-driven pricing strategies uniformly across
their OTAs and other sales channels.

4. RATE PARITY

Finally, rate parity continues to be an obstacle for hotels seeking to have more
control over their pricing structures. Most OTAs – in particular, those with
global reach – have automated tools which regularly check to ensure that hotels
are compliant with rate parity. This means it’s nearly impossible for your hotel
to offer special prices or other deals without drawing the ire of the OTAs not
receiving them – usually the only way is to circumvent the system by setting up
packages and private sales which parity checks might overlook.

4.2 HOW DOES THE HOTEL REVENUE MANAGEMENT

PROCESS WORK?

Hotel revenue management is a nuanced process, intricately designed to

optimise a hotel’s profitability by balancing room rates with demand. This
dynamic approach requires a blend of data analysis, market insight, and
strategic action.

1. COMPETITIVE ANALYSIS

Before setting any pricing strategy, it’s essential to understand the lay of the
land. This involves a thorough examination of competitors’ offerings, rates,
amenities, and even guest reviews. By gauging the strengths and weaknesses of
other hotels in the vicinity, one can identify unique selling points and potential
market gaps.

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2. FORECASTING

Forecasting involves predicting future demand for rooms. By analysing

historical data, current bookings, local events, and even broader market trends,
your hotel can anticipate busy and quiet periods. This foresight is crucial in
determining pricing and promotional strategies.

3. PRICING

Once there’s a clear understanding of demand and the competitive landscape,

you can set their room rates. This isn’t a static figure; dynamic pricing strategies
adjust rates in real-time based on current demand, ensuring that your property
can maximise revenue during peak times and maintain occupancy during quieter
periods.

4. INVENTORY MANAGEMENT

Beyond just room rates, inventory management considers how rooms are
allocated across various booking channels, such as direct bookings, online travel
agencies (OTAs), and traditional travel agents. It’s about ensuring that rooms
are available where they’re most likely to be booked and at the most profitable
rates.

5. MONITORING AND REVIEW

The world of hotel revenue management is ever-evolving, making regular

reviews imperative. By continuously monitoring performance metrics, guest

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feedback, and market changes, you can refine your strategies, making
adjustments to pricing, promotions, or distribution channels as needed.

4.3 REVENUE MANAGEMENT STRATEGIES

It is critical for any hotelier to create a revenue management strategy that is

adaptable to the current conditions. And often (at least at first), it is much more
important to focus on your own business – with full confidence in your strategy
– than to worry too much about competitors.

Every hospitality business strategy has to have the customer at its heart. It is
vital you have an idea of your audience’s consumer behaviour if you want to
squeeze the most value out of each guest that enters your door.

Factors to consider may be:

 How are travellers behaving in the current landscape?

 How do they book and travel?
 How do they experience and explore?
 What do they require?
 What are their expectations?

The better you know the guest the more guest loyalty you can generate, which is
extremely important for recurring revenue. Once you have a strong customer
retention base, you will know you will have a certain number of guests
returning each year, meaning more secured bookings and less rooms to worry
about filling, allowing you to focus on upselling and cross-selling your hotel
services.

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Planning how to price and what to promote 12 months from now will set you up
for success, because you’ll already be prepared for the travellers who are
dreaming of their ski holiday, summer getaway, or event-based trip. For
instance, are there festivals, concerts or events that occur every year or are
announced well in advance by local tourism bodies and event centres? Make
sure these are incorporated in your revenue, forecasting, and yield strategy! In
short, you need a revenue management strategy to remain sustainable.

Let’s go into five major strategies that will help you gain revenue and increase
profit.

1. HOTEL PRICING STRATEGIES

There is not one pricing strategy that works for all hotels. Each individual
property must consider a pricing strategy (or strategies) that work best for their
brand. A revenue manager should spend some time analysing data and other
influencing factors to ensure the business is operating with the best possible
chance to maximise income.

There are several questions you should ask yourself surrounding pricing
strategies:

 What do your guests want to see?

 Which strategy will best complement the business mix?
 How will strategies affect connected channels and distribution partners?
 How does your strategy integrate with your channels?
 Who are the experts that can help determine the right strategy?

Certain guests will prefer or be accustomed to seeing particular pricing

methods: some may like a cost breakdown of their stay per day, while others are

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happy with a total cost for their entire stay. So, this is where either Daily Pricing
or Length of Stay pricing strategies might come into play.

Bearing in mind the above, the first priority and most important step of pricing
strategies for hotels should be forecasting. This way you can predict demand
and set prices based on raising hotel room rates as availability drops and
demand increases, encouraging travellers to book early. This is an ideal pricing
structure known as the “ascending model” whereby pricing increases closer to
an arrival day.

Here’s a list of the most common and effective pricing strategies you can
employ at your hotel.

DYNAMIC PRICING

Dynamic pricing is also known as ‘time-based pricing’ and involves changing

room rates based on real-time market data, which could occur daily. This type of
strategy takes supply and demand into account and other factors that may affect
market demand; competitor pricing, room availability, seasonality, and other
external aspects. Within a dynamic pricing strategy, prices should vary based on
supply and demand to improve revenue and ensure maximum occupancy.

This pricing option is well suited in today’s market and is one many hoteliers
opt to use. Hotel revenue managers can use a revenue management system to
help better understand trends in which they can modify the supply of rooms and
adjust a pricing strategy whereby rates are implemented with the aim to increase
sales and profitability.

Take advantage of the shifting market and raise your rates compared to keeping
them static in order to earn more revenue.

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OPEN PRICING

Open pricing defines the flexibility hotels around the globe have to set their
prices at different levels depending on the various target markets and
distribution channels they deal with. It allows hotels to sell rooms at the best
and most attractive price for a consumer and also the most profitable price for
the property no matter the season or circumstances.

This type of pricing strategy ensures hotels never needlessly miss out on
potential deals, booking or distribution channels; if there is availability for room
bookings, it can be filled at a reasonable rate. For example, a high-end hotel
may usually attract guests with no budget constraints, but in the off-season
bookings will drop and the hotel has more flexibility to drop rates, attracting
travellers who normally would not be able to afford the stay. While the average
daily rate of the hotel will be lower, occupancy will remain steady and still work
to maximise revenue.

Here’s a list of the most common pricing strategies your hotel might find
useful:

Value-added pricing: Set room rates higher than the local competition and
offer more extras in the basic package.

Discount pricing: Most beneficial during slow seasons to boost occupancy by

dropping base rates, where revenue can also be made up through other services
in the hotel.

Price per segment: Offering the same product at different prices to different
market segments, such as a ‘family rate’

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Length of stay: Set a minimum number of days guests can book for when
demand outweighs supply, in such cases, lower rates may not be necessary.

Positional pricing: Basing your rates off brand strength and reputation.

Penetration pricing: Positioning yourself as the cheapest in the market,

however be mindful you’ll still need to retain the opportunity to sell at higher
rates.

Skimming: Positioning your hotel among the most expensive, clearly

highlighting why customers are paying more to stay at your property.

2. HOTEL MARKET SEGMENTATION

Market segmentation is a key aspect of revenue management in the hotel

industry. It allows you to differentiate between travellers who are coming to
your hotel and devise unique and individual strategies for all of them.

For example, the approach you take for young adventurers will be very different
to a business professional. Hotel market segmentation can be a little more
complex than simply business vs leisure, but you can use it to discover trends
within your hotel business.

One of the best ways to identify and filter segments is by their reason for travel;
family holiday, wedding, tourist event, adventure, relaxation, business, etc.
However, more and more hotels are adopting a different strategy completely
known as a “blended segmentation”. This is the method of defining market
segments by how a reservation was made, combining the reason for stay and
method of booking e.g. Expedia as a market segment.

Hotel chains have adopted different applications of the traditional definition of a

market segment and channels. Some identify a channel as an OTA and then

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identify the likes of Booking.com’s reward program and Expedia’s Egencia (for
corporate travel) as sub-channels.

Further segmentation factors that you should take into account include:

 Length of stay
 Days of the week of stays
 Lead time (how long before arrival do they book)
 Cancellations
 No show ratio

Once you have a good understanding of market segments you can start to decide
which groups your business wants to focus on more, and which to close out at
different times of the year. By doing a deeper dive analysis, you might realise
certain segments have higher cancellation rates and you could want to resist
marketing to them.

Remember, each segment will have a unique opportunity for you to gain extra
business or revenue.

Here’s a quick snapshot of the possibilities:

 Loyalty or rewards members – Offer discounts for next bookings and

upsell other products at a lower rate
 Mobile booking – Use mobile exclusive promotions
 Direct bookings – Make offers that only exist on your website
 Walk-ins – Entice extra spending with your amenities displayed within
the hotel for purchases during a booking
 Corporate – A chance to negotiate rates with large companies
 Online travel agents – Advertise special event packages
 Groups – Combine with tour operators and attractions

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Every piece of analysis you do helps you build the optimal business mix for
your hotel, so it’s important to look at all your options. If selling is a problem,
there’s always an opportunity to adapt the current process or a new market to
target. If spending is the problem, think of a way to entice customers to open
their wallets again.

3. HOTEL PRICE FORECASTING

Forecasting is not only important for rate setting, but also for budgeting
purposes. Accurate and effective forecasting requires a strong foundation in
historical data. By budgeting and forecasting in advance you’ll have plenty of
time and opportunity to make adjustments to your strategy. If you know one
point in the year is particularly valuable to your hotel, write your forecast
immediately for that period a year in advance.

Key components of an effective forecast include:

 Occupancy
 Revenue
 Room rates
 Turn ways/Regrets/Denials – Tracking of reservations that are turned
away or not booked, and is a critical measurement of demand. Ideally
your turn ways are captured and measured on your online as well as
direct/telephone requests.
 Spend per room
 Reservations
 Market trends

4. HOTEL BUDGETING AND DEMAND FORECASTING

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It’s a good idea to create a demand calendar prior to setting your budgeting plan
so you know exactly what you’re dealing with. Most hotels forecast every day
for the next 30 days and every week for the next 90 days.

A lot of hoteliers do this in a spreadsheet after extracting data from their PMS,
but this is where you need a really high tech yet easy to use system – that can do
it all in one place.

Take into account factors from last year and also trends for the upcoming year.
Mark the following as things to track:

 RevPAR last year

 Groups or events, from past years and new ones to come
 Demand level indicator last year (High, Medium, Low, Distressed)
 Public/bank holidays
 School holidays
 Indications of increased demand

This will allow you to make informed pricing strategies based on solid data sets.

Before you reach your ideal budget you have to take into account influences
such as sales resources, online marketing and distribution, refurbishment needs,
and developments your competitor set is making.

Your budget should be developed on the basis of this question: at which rate and
how many rooms can you sell for every future day? So you’ll need to have
established how you’ll anticipate the business demand and the leisure demand
per country, at which rate can you sell in the upcoming months, and how will
your main corporate accounts behave?

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There are two distinct demand measurements:

CONSTRAINED DEMAND

The maximum demand for the amount of rooms limited by the physical
inventory (the maximum number of bookings you could get based on the
number of rooms)

UNCONSTRAINED DEMAND

The maximum number of bookings you could get with unlimited rooms based
on demand, where you’re not limited by the actual physical inventory.

You should still identify when unconstrained demand is above the capacity of
the hotel; this is an important part of your hotel revenue management strategy.
The unconstrained demand is useful for hotels as it can help you calculate your
Last Room Value (LRV) for certain dates, and possible length of stay
restrictions that may apply.

5. HOTEL REVENUE ANALYSIS

Hotels will commonly benchmark against their competition to evaluate

performance. It’s not the definitive way to track performance, nor should it be
treated as a performance metric, but it does enable you to see where you stand
and how travellers might react.

You’ll be required to benchmark on criteria such as:

 Prices

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  Product (luxury, mid-range, budget-friendly)
 Level of service
 Location
 Distribution channel

Remember, a competitor is only a competitor if they’re targeting the same

markets as you; even then you might not be competing for the same segments at
the same time. However, if you can anticipate their strategies, making your own
adjustments will become much easier.

When you complete a hotel analysis of your property against the competitor set,
results can often look very different. Perhaps you thought you only had an
average year, when in fact your competitors were much worse off and you were
the stellar hotel in the area (or vice versa).

To benchmark for this, the Average Rate Index is a good way of looking at this.
It measures your Hotel’s Average Daily Rate against the Market/Competitor

ADR:

(Hotel ADR/Market (competitor) ADR) x 100

Example:

Hotel ADR = $85 vs Market ADR = $110

85 / 110 x 100 = Average rate index 77.27. In context, this means you only
achieved 77% of the rate that your competitors did.

Based on this data, you are then able to analyse to see how you can adapt your
hotel revenue management strategy accordingly. To get an edge on your
competitors, you can try to:

 Turn OTA bookers into direct bookers

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 Offer additional extras or services
 Create special packages
 Work on your reviews

CHAPTER – V
CONCLUSION

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CONCLUSION

In conclusion, pricing and revenue management in the hospitality industry play

pivotal roles in achieving financial success and sustaining competitive
advantages. The intricate interplay of factors such as market demand,
competitor pricing strategies, and customer behaviour necessitates a dynamic
and adaptive approach to pricing decisions. Through the synthesis of primary
and secondary data, this study has shed light on the multifaceted nature of
revenue management in the hospitality sector.

The limitations associated with secondary data, including accuracy, timeliness,

and context, underscore the importance of a nuanced understanding when
employing such data sources. The hospitality industry's dynamic nature
demands real-time insights, and while secondary data provides valuable
historical perspectives, its application requires careful consideration of temporal
relevance.

As the industry continues to evolve, advancements in technology, data analytics,

and machine learning present opportunities for enhanced revenue management
strategies. Integrating these tools into pricing decisions enables hospitality
businesses to navigate complexities more effectively, offering personalized
experiences and optimizing revenue streams.

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In navigating the delicate balance between demand optimization and customer
satisfaction, the findings emphasize the need for a strategic, customer-centric
approach to pricing. Successful revenue management hinges on continuous
adaptation to market dynamics, leveraging data-driven insights, and embracing
innovative technologies to meet the ever-changing demands of the hospitality
landscape. As we move forward, the integration of these principles will be
instrumental in shaping the future success of pricing and revenue management
strategies within the hospitality industry.

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 Aggarwal, R., and S.P. Singh. 2019. An integrated NPV-based supply

chain configuration with third-party logistics services. Journal of Revenue
and Pricing Management 18: 367–375.
 Alshamsi, A., and A. Diabat. 2015. A reverse logistics network design.
Journal of Manufacturing Systems 37: 589–598.
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