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What we believe about Revenue Management:
1. The application of disciplined tactics that predict consumer
behavior at the micromarket level and optimize product availability
and price to maximize revenue growth.
2. About maximizing revenue from existing business.
3. A management science that employs mathematical concepts and computers
to crunch gigabytes of marketing information to:
-Accurately assess future consumer behavior despite constantly changing market
conditions
-Determine the most effective way to price and allocate inventory to reach every
future consumer, each and every day, and continually validate and adjust it.
-Communicate this information instantaneously to distribution and sales outlets
which deal with the consumer in real-time.
-Serve as a decision-support resource for marketing and operational functions like
budgeting, forecasting, pricing, scheduling, product development, advertising,
sales, and human resource utilization.
Our View of Successful Revenue Management
1. Develop an effective sell strategy – the rates, availability and
restrictions – for each distribution channel while considering
the following:
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- Levels of demand, both actual and unconstrained
- Price sensitivity
- Arrival / departure pattern and length of stay
- Booking lead time
- Booking channel rules and costs / commission
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2. Develop and deliver rate, availability and restriction information
for every day (normally at least one full year in advance) to each distribution channel.
3. Continually re-evaluate the dynamics of each distribution channel
to ensure that the most profitable strategic mix is achieved.
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