Hospitality Analytics and Revenue Managements RVC & RPC

Hospitality Analytics and Revenue Managements RVC & RPC

The article ‘’Hospitality Analytics and Revenue Management RVC &RPC’’, by Stan H.G. Joseph of the Breda University of Applied Science, Florian Aubke of MODUL University Vienna and Mark Strand. It is found on the International Journal of Contemporary Hospital Management which is according to Ceridwyn King and Interaction Journal of Contemporary Hospitality  Management according to Linchi work’’. The publication is about focus revenue management, hospitality analytic, revenue strategy for the hotels, decisions that are made regarding the hotel strategy, direct competitor of the hotel, how the general hotel managers make decisions concerning pricing  of services offered, overbooking and closeouts, the benefits that the customer get after using the property, finding out the average  daily rate, for the property, average occupancy, the distribution channels that the property uses and their market segmentation mix. In most hotels have a manager who manages the hotel or the restraint he is responsible for everything that goes on in this hotel whether it is a high profile hotel, a glamorous restaurant or small deli, a manager must indulge himself in the business, if one thing goes wrong it falls on the manager’s shoulder. The service industry is the biggest industry in the United States today. It garners more attention and customers than any other business in the country

According to the interview carried out, the hotel general manager gave the following revenue strategy for their property as follows:

    Selling of the right product to the right customer at the right time for the right price, this helps in understanding customer’s perception of your product value

    Pricing strategy-helps in developing a disciplined pricing strategy to anticipate the amount created for customers and then set specific prices to capture that value. A successful pricing strategy, supported by analytically based pricing tactics, can drastically improve your firm’s profitability

    Inventory When focused on controlling, revenue management is mainly concerned with how best the price or allocate capacity first you can discount products to increase volume. By lowering the costs of products, you can overcome weak demand and gain market share which ultimately increases revenue

    Promotions- price promotions allows companies to sell higher volumes of temporarily discounting the price of their product revenue, management strategies measures customer responsiveness to advertisements to strike a balance between volume growth and profitability .An active development helps to maximize revenue when there is uncertainty about the distribution of customers willing to pay

    Channels -different channels represent customers with different price sensitivity, for example, a customer who shops online are usually more price sensitive than customers who shop on the high street. Different channels often have different costs margin associated with these channels

    Choose the Right pricing strategy –out of the many different pricing strategies one need to consider the best approach for their particular hotel based on what they offer, who they were trying to attract and the policies their competitors are employing. It is good when your hotel has more to offer than your competitors and giving your customers a discount strategy

    Working with a freelancer Revenue manager who will be able to bring expertise, knowledge, and experience into the organization.They tend to work quickly and are always available.It is more beneficial working with a freelancer manager than appointing a full-time revenue manager as one will save the cost of training them because of their established expertise

    Focusing on Mobile optimization a hotel operating with a prioritized mobile optimization is working at a distinct advantage compared to its competitors, this is because it loads quickly, pages display correctly on them, and all buttons are correctly functioning. So that customers can book rooms without needing to switch to desktop one need to make sure the booking process is optimized

    Incentives for direct bookings as it will cater to or all customers wherever they are. It is also essential to maximize the number of reservations made. This direct booking does not require commissions to be paid to a third party; thus they are ideal or maximizing revenue.

    Forecasting strategies –this will allow you to anticipate future demands and income thus enabling adjustments to be made within the hospitality industry. Accurate records being kept will give in high –quality forecasting.Most forecasting strategies rely heavily on using historical data to spot trends.

    Working closely with other departments –this will help to ensure that their department strategies are in alignment with one another. Working with them will make adjustments to your revenue management strategies, rather than imposing your will.

    Understanding your market to have a successful revenue management strategy. One needs to have a clear understanding of the market, where demands come from and the various local factors that might affect physical demand. You also need to understand the competition existing in the market and the strategic decisions regarding price, discounts, and advertisements with this competition.


Hospital analytics and revenue management RVC and RPC being a business, it has typically faced the challenge of stiff competition from the nearing surrounding area; competition is     rife in the hotel industry and therefore there as also ways of winning over your competitor hotel

  1. Identify your strengths such as location, nearby attractions,USP, in other terms things that differentiate you from the rest and promote your hotel based on that for example if your hotel is located near a museum, bank upon that when developing your hotel brings out things that will add an event happening in your city, tie up with them to attract travelers.
  2. Market your website, more than a site having a compelling easy to navigate and engaging sections can set you apart from competitors, apart from giving details, focus on influencing the travelers through blogs, knowledge articles, and useful information .Give them enough reasons to book  to this hotel websites and blogs that have done an excellent job. A good way of differentiating your hotel would be by building partnerships with local attractions, events, operators’  sight-seeing tours or restaurants and offer your guests add-ons for making a booking with your hotel.
  3. Justify your price when setting a price for your room, you need to justify the traveler’s investment with the kind of services you are providing since the new age travelers don’t compromise anyone and willing to pay a little extra, you have to tell them how their stay can be a fruitful one. Selling your rooms at low prices compared to others will easily pull them pull them to your places.
  4. Stick to your words once you have identified that one thing that differentiates your hotel from the rest, you now tell the travelers all about it, reasons they should stay with you and how you will make their stay more memorable; ensure you deliver what you say


  1. Attract through social media social media is gaining popularity in the hotel industry with the majority of the hotels hopping on to the social media bandwagon.


  1. Online marketing being present on search channels and a listing are important to set you apart from your competitors especially if a few of them still don’t have a website with effective SEO, you can ensure that your hotel’s website will be discovered by the travelers’ easily.


With more and more hotels entering into the industry the competition is getting tougher day by day and hotels are struggling to differentiate themselves.


In hotels sometimes it normally happens that there is overbooking, more booking is good business. It is right but not always .A hotelier’s greatest and unpleasant nightmare is the overbooking o hotels room; what follows next can be damaging to the reputation of your hotel, adding to revenue loss you may have to accommodate their irate guests on other hotels at higher costs, hotel overbooking is a calculated risk that may lead to serious consequences’, this can easily bring down the number of visitors in the long run.


    Managing multiple OTAs in a bid to avoid being with a single agency

    The tedious process of updating rooms inventory details room your end

    manually managing rates (seasonal rates off-season package deals, promotional offers) across various platforms.

    Lack of time and resources to manage hotel bookings across various platforms

    Ear o wasted inventory and profit/loss

    Allocating more rooms to a particular agency without any assurance of room bookings

To avoid overbooking, one can easily use channel managers all your existing OTA channel with the available inventory and rate, with channel manager you can:

    Utilize the potential market without any limits

    Update rates across all channels track your sales channel easily

    Access built-in report in a click

    Manage your booking volume

    Maximize revenue without missing on sales

    Display your current room availability status to channels

Despite overbooking as one hotel activity there is also pricing of the property, competitive pricing and available supplies are only two factors to be considered when setting an optimal hotel price. This article explores some of the elements influencing price and how they may be used to make more effective pricing decisions. We need to have an understanding o where we were before moving forward, looking pricing decisions, understanding your hotel business mix and segmentation will help inform the potential outcome o price changes in the future


The hospitality industry has helped the customers to get air services and affordable ones, and the customers recover various values from hotels based on the prices they pay the purpose o hospitality is to serve its guests profitably while delivering a lasting experience, hospitality to the customers. If the caterers focus customers one at the heart of hospitality and can often make or break a business, providing excellent customers services will see you again loyal customers that will help your business grow

In the hospitality industry there are calculations made that is the average daily rate which is used in the hospitality industry to indicate the average realized room rental per day. The average daily rate is one of the critical performance indications (KPL) of the industry.ADR ( Average Daily Rate or ARR (Average Room Rate )is a measure o the average rate paid or the rooms sold, calculated by dividing total rooms sold; calculated by dividing total rooms revenue by rooms sold. There is also average occupancy, calculating two separate factors determine this in general. The maximum number of persons it is designed to hold two different elements can learn this; the maximum number of persons it is intended to conduct which can be determined by dividing the area of the rooms by an occupancy factors (this varies depending on the use to which the office is to be put and is summarized in a table.

The property uses the global distribution system (GPS) as the distribution channel a global distribution system or GDS, is a system that is primarily used by a travel agent to book things like an airline seat, hotel rooms and car rentals for their client and customers. The essential one distribution channel for hotels, the distribution channel that hotel use and invest in can have a significant bearing on their revenue management strategy and their overall success.

The following is the most critical distribution for hotels:

    Your Hotel’s website

This is because the most obvious and most effective marketing tools should have at your disposal. Own Website will provide you with an ideal platform to convey your brand values and one’s target audience.

    online travel agents (OTAs)

For example is the Expedia,, and though being the most costly distribution channel for hotels, it has many benefits allowing your hotel to attract guests who might not have found the hotel through other channels being the most primary benefit.

    Global distribution system (GDS)

This a network that is primarily used by travel agents to book things like airline seats, hotels rooms, and car rentals or their clients and customers. It allows one to foster positive relations with travel agents thus resulting in greater commercial demand for your hotel rooms.

In hospitality, there are market segmentation strategies that are divided into five major segments strategies

    Behavior segmentation

    Benefit segmentation

    Demographic segmentation

    Geographic segmentation

    Psychographic segmentation

When implementing or revising your market segmentation plan, the following steps should be followed:

    Objective setting –set segmentation analysis and goals

    Identify customer segments –research design.

    Develop segmentation strategy preferred target segment.

    Execute go – to – market plan.

For hospitality industry to attract more customers, discounts are usually offered for a service at a price lesser than the marked or the original price, and the discount is a discount which is being provided on seasonal goods or a particular seasonal, this discount increases sale.

From the interview part of view it found that hospitality industry is a business venture like any other organization enterprise and hence there is making of profit and losses when the company is not well organized ,according to the general manager of the hotel it is found that the revenue strategy for their property is the same case located in the journal used  to gather the information, these revenue strategies include price strategy ,inventory, channel, selling of the right product to the right customers at the right time and among many others is still the same thing found in the articles despite that the knowledge acquired from the journals and the articles helps one as a manager to apply the knowledge to real lie situation and hence it will end up boosting the company’s economy.

The five-star Hotel being the hotel o choice for the interview purpose, it has helped in giving more information about how to serve the customer in a good and a better-appreciated way. The Manager of the hotel has full information about the hospitality and revenue strategy



Carrol , B., &  Siguaw. J. (.2003). The  evolution of electronic distribution :Effects on hotels and intermediaries .

The Cornell hotel and Restaurant Administration Quarterly, 44(4), 38-50. Doi: 1010161 0010

Do you need an Original High Quality Academic Custom Essay?