ALL IMPORTANT STUFF REVENUE MANAGEMENT
Revenue management = there to maximize revenue/profit. It is a technique to optimize
income revenue from a fixed but perishable inventory. Sell the right rooms to the right
customer at the right time for the right price.
HOW Guest Product Price Place
WITH WHAT Segments. Differentiate, Rates and Distribution
price fencing availability. channels.
and conditions.
Customer value= what the customer is willing to pay.
Customer worth= the total value of the customer to the company.
Customer segmentation= dividing a market into smaller specific segments, sharing the same
characteristics.
Price fencing= a tool to keep the customers in a higher price segment.
- Location
- Service
- Availability
Elasticity of demand= how people react on a consequence of price.
Price parity= the price is the same for various distribution channels.
Cross-channel behaviour= when a consumer accesses more than one channel while making
a purchase.
Merchant model= a 3rd party website which you have to pay commission. Examples are
booking.com, Trip advisor and Expedia.
Rate parity= different rates showing on different channels.
Constrained demand= when your demand is above your capacity so you have not enough
rooms.
Unconstrained demand= when your demand is under your capacity (so enough rooms).
BUDGET & FORECASTING
A budget is not changing and a forecast is changing all the time. It is a long-term target.
A forecast= a short-term target. It is the act of estimating, calculating or predicting conditions
in the future. To create a forecast:
- Historical data (KPI’s)
- Future & current data
The business mix= the combination of different types of business activities.
Displacement analyse= choosing (and replacing) the customer that brings the most money in
your company.
INVENTORY MANAGEMENT
Inventory management= the process of controlling the number of units and availability of
products across various channels.
- Perishable inventory= a product with a given time period. If you don’t sell the room
today, you can’t sell it later (a room or seat).
Revenue management = there to maximize revenue/profit. It is a technique to optimize
income revenue from a fixed but perishable inventory. Sell the right rooms to the right
customer at the right time for the right price.
HOW Guest Product Price Place
WITH WHAT Segments. Differentiate, Rates and Distribution
price fencing availability. channels.
and conditions.
Customer value= what the customer is willing to pay.
Customer worth= the total value of the customer to the company.
Customer segmentation= dividing a market into smaller specific segments, sharing the same
characteristics.
Price fencing= a tool to keep the customers in a higher price segment.
- Location
- Service
- Availability
Elasticity of demand= how people react on a consequence of price.
Price parity= the price is the same for various distribution channels.
Cross-channel behaviour= when a consumer accesses more than one channel while making
a purchase.
Merchant model= a 3rd party website which you have to pay commission. Examples are
booking.com, Trip advisor and Expedia.
Rate parity= different rates showing on different channels.
Constrained demand= when your demand is above your capacity so you have not enough
rooms.
Unconstrained demand= when your demand is under your capacity (so enough rooms).
BUDGET & FORECASTING
A budget is not changing and a forecast is changing all the time. It is a long-term target.
A forecast= a short-term target. It is the act of estimating, calculating or predicting conditions
in the future. To create a forecast:
- Historical data (KPI’s)
- Future & current data
The business mix= the combination of different types of business activities.
Displacement analyse= choosing (and replacing) the customer that brings the most money in
your company.
INVENTORY MANAGEMENT
Inventory management= the process of controlling the number of units and availability of
products across various channels.
- Perishable inventory= a product with a given time period. If you don’t sell the room
today, you can’t sell it later (a room or seat).
