Reference no: EM132376131 , Length: word count : 2000
Assignment - Tourism & Hotel Revenue Management Practise Analysis
Company name- Qantas
About the Task
All tasks are based on the fundamental, theoretical and conceptional learning in this course.
You will work on a major project of preparing an analysis and assessment of the revenue management practice established by an allocated hotel.
Task Description
Revenue Management strategies include a wide range of opportunities to increase revenue in all the departments of the hotel and different tourism organisations. The business can utilise the different strategies and tacticsto maximise and optimise revenues; however, not all can be used at the same time. Some of the concepts of the RM practices relate to pricing, inventory, marketing and distribution channels.
Your task is to identify the current industry trends conducive to a successful implementation of revenue management strategies and tactics in the global and Australian hoteland tourism industry. From the macro-perspective, it is crucial to include these opportunities and threats into effective revenue management practices for the individualbusiness and property level.
Hence, you are required to analyse and assess the RM performance of a specific property based on the theoretical concepts discussed in class and your observation from the publicly available information of the group and property level.
Everyone in your group can chose one of the cases listed underneath.Every group member must discuss a different business but which one you chose is left to your group communication.
1. Revenue Management
1. Discuss reasons and the purpose of establishing an effective Revenue Management system in the hotel and tourism industry.
2. Identify current trends within the wider industry, which may pose opportunities and/or threats to the revenue growth and management within the whole industry.
3. Comment on the following statement: “The best way to access customers for all accommodation properties is to sell room inventory through the property’s own website and avoid OTAs”. Ensure to incorporate RM related concepts to support your argument.
2. Broader Business Analysis
2.1 Group Level Analysis:
1. Relative performance evaluation:
Hotel (Case 1-3): Use the STR data and the hotel’s group data provided in the Appendixto assess the whole hotel group’s current, relative RM performance in the market and national comparison. Calculate the market penetration index and comment on the hotel group’s comparative performance.
Case 4 &5: Identify performance metrics, e.g. passenger load factor, which could assist the business to evaluate the effectiveness of its established revenue management strategies and tactics.
2. Are there any issues with using the national and market average performance data or the group data for a valid comparison with the competitive set?
2.2 Property& Trip Level Analysis
1. As revenue management varies by the property/product and other characteristics, identify the following information of your property/ tripas starting point of your revenue management analysis, and outline the different revenue-generating departments.
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Full capacity rooms/seats
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Under 100, 100-250, 251 - 500 , over 500
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Ownership
Branded or independent
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Service type
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Full-service,limited-service, convention/ conference, Resort
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Location
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City center, smaller center, Suburban, Airport
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Name
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Address
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Web site
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2. Discuss, whether the regional area/ type of experienceof your hotel/trip is undergoing significant trend changes regarding the MLoS, change in market segments, arrivals from specific countries and new supply of accommodation and other close substitutes.
During the analysis it was felt that the hotel has included many pricing strategies and tactics across departments.Using the publicly available and accessible information, analyse, assess and evaluate the business specific revenue management strategies and tactics established in the operations.
3. Identify the foundation of the RM strategy implementationof your property/ trip chosen.
a) Review market segment mix, as well as seasonal changes.
b) Assess the pricing position in the immediate competitive environment (1 -2 competitors for comparison purposes is sufficient).
4. Assess the RM strategiesand tools, the business applied to its product inventory, services, trading periods and market segments based on your observations through the group and property website, and other booking sites. Ensure to relate your observations to the underlying theoretical concepts.
Analyse main aspects of the RM decision-making framework the revenue managers of your property considered when implementing strategic and tactical revenue management practices:
a) Product-related Pricing Structure/Tools
b) InventoryControl/Management Strategiesrelated to different product versions
c) Distribution Channel Strategies
i. Global distribution systems
ii. Proprietary website/ direct channel (Promotions)
iii. Third party channel management
d) Non-room related services and packages
2.3 Conclusion:
5. If you assumed the regional penetration indices/ or other revenue management performance measures applied to your product, evaluate the effectiveness of the currentRM strategy and identify potential recommendation for improvements.
Attachment:- Final Report - Individual.rar