As stated by Customer Alliance, hotel revenue management means “Selling the Right Room to the Right Client at the Right Moment at the Right Price on the Right Distribution Channel with the best commission efficiency (Landman, 2011).”
According to this source, hotel revenue management originated from a mathematical sales model within the airline industry with Marriott International being one of the first major players to earn on a large scale by implementing the concept. This concept is viewed as a tool for building one’s own fortune and it affects customer satisfaction and pricing, which are the top two dynamic variables, and it involves equilibrium between demand and capacity, which is achieved by predicting prices in order to capitalize on the effectiveness of the hotel’s resources.
With the arrival of the Internet and certain relevant online agencies and portals, hotel revenue management has become quite complex, yet it benefits from less expensive and more objective means of determining both customer satisfaction and pricing. The concept takes time to be developed using a large body of relevant data about the hotel and its environment, which must be cautiously studied and implemented. Its importance has grown since its inception and changing consumer demands, customer satisfaction, and the hotel’s shortcomings which can be easily shared with the world have added great complexity to the concept.
Because of the complexity of modern-day hotel revenue management, you need expert guidance on how to navigate the intricacy. eCornell’s professional certificate in Hotel Revenue Management will give you a definite advantage. Learn about the certificate here and register at https://genashtim-ecornell.com/retail-courses/
Cornell University School of Hotel Administration has been ranked No. 1 on the list of the best hospitality and hotel management schools in the world for 2018, according to a new study out by the CEOWORLD magazine. Cited from: CEOWORLD Magazine