Fundamentals of Hotel Revenue Management | Hotel Management

Effective Hotel Revenue Management is an integral part of hotel management success. Hospitality Revenue management techniques help hotels to maximize their profits. Understanding Revenue Management process is very important due to 

  1. Hotel Rooms are perishable which means they need to be consumed as they are produced. You may not be able to sell a room night the next day. All unsold room nights are considered lost revenue. Hotel Managers always try to maximize occupancy.
  2. All customers may not have the same needs and value perception to pay the same price for a hotel room. Value perception varies from guest to guest and their needs. 
  3. All rooms sold ma not be able to generate the same amount of profit as hotels as step fixed costs. Which means hotel cost will remain the same up to a certain level of occupancy and will increase after achieving a certain stage.

Challenge in hospitality revenue management is to optimize occupancy, rates and customer segments to maximize hotel profits.

The important thing to note here is that “hotel profits” as we discussed above is not the same as accounting profit. Successful business leader has defined profits as a transaction where both buyer and seller gains (value exchanged exceeds price paid). 

This philosophy makes revenue management an even more complicated process. Revenue managers need to understand when their customers will gain in the transaction.

So how do we achieve all these ??

There are various Revenue Management techniques and processes which are designed to achieve these objectives such as but not limited to,

  1. Understanding the positioning of the hotel and the key value propositions. 
  2. Understanding customer expectations and matching with a hotel value proposition to understand how much price they would pay.
  3. SWOT Analysis to compare against the competition. ,
  4. Hotel room Pricing techniques
  5. Hospitality room distribution management to manage different channels to sell rooms.
  6. Hospitality demand forecasting to understand future business potentials to manage inventory and pricing.

In this course, we will discuss all these topics one by one starting from 

  1. The understanding of the hotel value proposition for different customers.
  2. How do we establish prices keeping in view competition, value proposition, costs, 
  3. How do we conduct inventory management to ensure maximization of profits
  4. What reports and data we need for demand forecasting, inventory management, customer segmentation?

What you will learn in this course on Hospitality Revenue Management?

  1. Revenue Management techniques
  2. Fundamentals of the revenue management process
  3. Pricing Techniques in hotel management
  4. Hotel business segmentation and & guest Profiling to understand your hotel’s revenue
  5. How to analyze and understand your Competition and conduct SWOT analysis
  6. Revenue maximization techniques for maximizing hotel profits

Requirements

  • Basic understanding of hotel operations 
  • Analytical skills
  • Willingness to research to understand your business and customers

 

Why you should take this course and What to expect

All hospitality professionals must understand revenue management fundamentals to evaluate how their decisions would affect hotel profitability. In order to be successful in the hospitality career, all hospitality professionals from any background should make themselves comfortable in understanding the fundamentals of Revenue Management.

This course will teach you all the practical aspects of revenue management, introduce reports and data needed to make revenue management. You will learn below aspects.

  1. Pricing Pillars, Concepts and Dangers,
  2. Understanding business and customer segmentation, where the business comes from.
  3. Analyze usage and manage hotel room Inventory.
  4. What are the typical revenue management decisions you would make?
  5. What data is required to make such a decision?

 

Unique Features of this revenue management course

This course will focus on theoretical fundamental aspects, which you need to master.

Continuous guidance in your learning ensuring that you achieve your objective of subscribing to this course.

Regular Updates on case studies based on your feedbacks

Even though the course is online with no physical presence, assignments in this course will give you a change of personal interaction. I will review all assignments personally and give you personalized guidance.

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Who this course is for:

  • Small Business Owners
  • Hotel Managers
  • Revenue Managers
  • Course Duration: 2.5 Hours
  • Course fees - USD 9.99
  • Course Curriculum

    In this section you will learn about –

    • Introduction to The course
    • Revenue Management Definitions,
    • Revenue Management (Constellation & Premises) and
    • Revenue Management (Meaning & Fundamentals).

    In this video you will learn about –

    • Key Terms Used in Revenue Management and
    • Revenue Management (Metrics and Steps)

    In this video you will learn about –

    • Segmentation Fundamentals and
    •  Understanding Demand.

    In this video you will learn about –

    • Understanding your Competition 
    • Pricing Strategy.

    In this video you will learn about –

    • Inventory Management & Understanding Revenue Management Reports.
    BONUS LECTURE

    Sample Videos