Hotel Revenue Management Techniques

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Hotel Revenue Management Techniques.

To maximize on profits and reduce costs, hotels apply different revenue management techniques. This paper will look at the revenue management techniques employed by different hotels.

Best Western Hotel.

Best Western Hotel has 4,195 hotels across 100 nations in the world. The hotel uses the SMART technique which ensures the corporation’s goals towards revenue maximization are precise, well-established and measurable. These goals are attainable and realistic. A time-frame is also set in an effort to increase the productivity levels of the hotel’s operations. This kind of technique helps employees to actualize the hotels’ targets.

Marriot Hotel.

With 3,700 properties and 18 brands in 73 countries world wide, Marriot hotel uses the Group Pricing Optimizer System (G.P.O) for its revenue management. This system provides decision support to provide guidance to Marriot personnel on pricing hotel rooms for group customers. This revenue management method uses demand segmentation, price-elasticity modeling, and optimization techniques to recommend an opt mate.

Hyatt Hotel.

Founded in 1957, Hyatt hotel uses a system called Revenue Management Solutions (Maxim RMS) for its revenue management. This system provides price sensitive optimization to produce profit maximizing pricing and optimal rate control. The Maxim has a sister system called Business Intelligence that combines all details of the hotels and data with advanced analytics to explain and evaluate past and future hotel performance.

Hilton Hotel.

With property ownership across the world, Hilton Hotel has adopted the Revenue Management Consolidated Center (RMCC) to manage its revenue. The consolidated approach means cost maximization and scale efficiencies for the hotel. This helps to confirm pricing and contracting is as effective as possible. This aids in confirming pricing and contracting effectively.

Reference

BIBLIOGRAPHY Kimes, Sheryl E. Hotel Revnue Management. 26 10 2008. 23 05 2013 <http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-14927.html>.