Revenue management team
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Transcript of Revenue management team
REVENUE MANAGEMENT TEAM
SUBMITTED BY-ARUSHI CHADHAMSC 1ST YEAR149559021
CONTENTS
REVENUE MANAGEMENT TEAM COMPOSITION OF REVENUE
MANAGEMENT TEAM ROLE OF REVENUE MANAGEMENT
TEAM REVENUE MANAGEMENT IN
RESTAURANTS AND BARS
REVENUE MANAGEMENT TEAM (RvMT)
Revenue management team is very a crucial point in implementing operations of revenue management in hotel industry.
Revenue management’s experienced and talented teams are dedicated to helping properties achieve superior market share and profitability
MAKING DECISIONS, MANAGING REVENUE.
CONSISTENCY OF RvMT It usually includes representatives from
key areas of the property.General manager,
Revenue
manager,Sales manager,
Catering
manager,
Reservation
manager.
Front office manager,Food & beverage manager
Other managers,Hotel controller
ROLE OF RvMT
It acts as satellite agents for implementing revenue management.
Helps in determining whether past forecast were accurate and alert revenue manager to signification patterns in group or transient behavior.
Develops plans for interdepartmental communication.
Some of major tasks of RvMT are stated further-:
BUILDING A REVENUE MANAGEMENT CULTURE
SETTING REVENUE MANAGEMENT GOALS AND
OBJECTIVES
ORGANISING THE REVENUE MANAGEMENT FUCTION
RvMT MEETINGS
Daily meetings
• Review previous day or weekend occupancy, room revenue, ADR, & yield occupancy.• Reviews the booking pace for near-term business.• Reviews old business• Presents new business• Discuss any last minute adjustments• Determines information needs to be circulated
a
At weekly meetings Review forecasts for 30,60, 90 & 120 days Discuss stratigies.
At monthly meetings Determine efforts to boost sales, additional marketing. Review ongoing annual forecast. Track yield statistics. Future period calculations Discounts may/ may not opned Review each sales contract Sales target figure for month
OBJECTIVES OF REVENUE MANAGEMENT
Reveue Managemen
t
Maximizing Revenue
Discount Policy
Review
Process Improveme
nt
Customer Success
REVENUE MANAGEMENT CYCLE
FORECAST
OPTIMIZE
CONTOL
MONITOR
CASE STUDY ON REVENUE MANAGEMENT IN RESTAURANTS AND BARS
INTRODUCTION
RESTAURANT REVENUE MANAGEMENT(RRM)
Selling right seat to the right customer at the right price and for right
duration.
Goal of RRM is to maximize revenue per available seat hour (Rev PASH)
OBJECTIVES
Role of techniques used in revenue management
• Promotional strategy• Pricing strategy• Marketing techniquesMarket segmentation in revenue generation How does market segmentation leads to profit
maximization Factors to attract market segmentation
DISCUSSIONS
If the price established by management must strike a very fine balance between the consumers need for value and the owner’s need for maximum return on investment, prices must determined to induce patronage.
said by: Robert D.Reid
in Feb 2009
DISCUSSIONS
Bars have a lot of competition of their customers, from other drinking establishments to restaurants, getting people through your doors and onto your seats and stools isn’t the only issue, either; you need to ensure your patrons continue to spend money once they settle in.
Said by:Filonia
on april 2013
DISCUSSIONS
Market segmentation is an important aspect of market pricing. An organization can’t be all things to all people. To market its product cost effectively, it must clearly identify its customers and market segments they belong to.
Said by:Pat Levings
At June 1974
COLLECTION AND ANALYSIS OF DATA
Surveys has been conducted in several hotels of Chennai. That are-• Radision Blu Hilton hotel The leela palace The Westin Hyatt regency ITC Grand Chola Trident chennai The Raintree Taj Coromandel Le Royal Meridien
DATA OBTAINED AND ANALYSED
What promotional strategies do you use?
Personal sell-ing-10%Public relations- 80%Advertising-10%
How do you increase your volume of sales?
Increasing the food and bev-erage prices- 60%
More physical business- 40%
What are the different marketing tactics do you use?
Increasing overall quality- 50%
Hiring sales ori-ented staff- 14%
Publicity of the product- 28%
Discount or credit terms- 18%
What pricing stratigies do you follow?
Flexible pricing- 58%
Price building- 20%
Complementary Pricing-10%
Guest loyality discount- 12%
Does market segmentation helps you in increment of revenue?
Yes- 80% No- 20%0
10
20
30
40
50
60
70
80
What additional efforts you do to magnetize your market segmentations?
Free wifi- 35.8%
Special meeting seating- 7.1%
Live music band- 0%
Creating ambeince- 57.1%
0 10 20 30 40 50 60
What up selling techniques do you focus to improve your profits?
Cross sell more prof-itable items- 50%Suggesting seasonable special- 10%Offer specific item- 0%Understanding guest psychology- 40%
How do you define your restaurant/bar in terms of value of money?
Meeting guest need- 20%Pleasant ambience- 10%
0
20
40
60
CONCLUSION
Selling product on a low price doesn’nt work always, generally not in hotels.
Market segmentation leads to major revenue generation.
Focusing on guest need, understanding their psychology leads us meeting our volume of sales.