Reference no: EM132768376

Introduction

• The emergence and spread of the COVID-19 pandemic resulting in nationwide lockdowns and domestic and international travel restrictions call for a significant revenue management strategy to help hotels recover. Revenue Management Strategies is all about the application of different analytics that helps to determine consumer behavior at any levels. Its purpose is to sell the right product to the right customer at a reasonable price. Hotels should adopt ancillary revenue mechanisms, which is the revenue derived from goods or services other than its primary product. Ancillary revenue is when you take income from additional services or products offered in your hotel. This will enable hotels to acquire additional income from different goods and services steaming growth during this critical period. Several ideas should be implemented by the hotel owners to increase ancillary revenue. The vast range of these ideas includes; partnering with local producers, offering adventure and entertainment, letting the guests take hotel homes, installing a cellar, and meeting a hotel a meeting place.

• The advantage of using this management strategy includes unlocking new and lucrative revenue streams and increased up-sell and cross-sell opportunities, which contribute to the hotel's bottom line. It helps in generating additional revenue from the extra goods and services. It will also increase hotel investments, heavily influenced by multiple parties such as partners' entrance from local producers.

• In exchange for the exposure, hotels will receive the selling price on any piece purchased by the guests. Entertaining could also entice guests to stay by offering them a package deal on events resulting in revenue through booking. Depending on hotel locations, the extensions of craftspeople such as potters, surfboard builders, jeweler makers, and fresh produce farmers will attract more tourists. Stocking local wine or beer for sale also attracts new guests, and selling cookbooks to these guests will increase hotel revenues. The inclusion of the corporate sector will also diversify hotel services by offering meeting places. Having a conference room to hire will make it easier for them to conduct their business and give you another steady stream of revenue. It also a beautiful means of advertisement as the corporate sector would refer other clients to your hotels. When used strategically, ancillary revenue presents an opportunity for all hotels for incremental growth.

Statement of the Problem

This study aims to answer the following questions:

Question 1. What are the current revenue management strategies of hotels in Baguio City in terms of:

a. Market Segmentation;

b. Booking Patterns;

c. Information System; and

d. Pricing and Inventory Management?

Question 2. What is the level of implementation of revenue management strategies of hotels in Baguio City in terms of:

a. Market Segmentation;

b. Booking Patterns;

c. Information System; and

d. Pricing and Inventory Management?

Question 3. What are the problems encountered by hotels in Baguio City in revenue management strategies along:

a. Market Segmentation;

b. Booking Patterns;

c. Information System; and

d. Pricing and Inventory Management?