Evaluate the application of revenue management practice in the hotel Essay

Evaluate the application of revenue management practice in the hotel industry and discuss its impact on customers in the hotel industry; - Essay Example dification in the general handling of revenue management, inventory allocation, pricing strategy, use of information and channel management as concerns to revenue management tend to redefine the field. Similarly to how detailed past analysis might have a representation of the best pricing practice during the 1990s, apparently, the stock market-impacted algorithms exist in the cutting edge of modern pricing thought. Comparably, the highlighting on occupancy or average day to day rate, which might have dominion over revenue managers’ outlook over two decades ago has led to the dominance of revenue per available room i.e. RevPAR. Instances like this abound hence this article will endeavor to share all of the revenue management expertise with readers, in a series examining the modern revenue management’s best practices (Kimberley, Trevor & Juston 2008, p.12). Pricing tends to a feature of revenue management, which features a number of intriguing, as well as innovative developments recently. Whereas pricing has continues to be a significant driver having an effect on both occupancy, along with RevPAR, in the present environment surrounded by exceptional price transparency, rates have taken an even bigger role. Ascertaining the optimal rate to give to a potential customer tends to be one of the most significant concepts of revenue management. The basic fact that the appropriate rate- one that achieves the balance between replicating enough demand in maximizing occupancy, while at the same time, not deserting money on the table within the form of low down ADR turns out to be the key to a profitable revenue management strategy causing pricing perhaps the most significant concept of revenue management. Then how is a hotel capable of determining what the best rate has to be any time? In the past, this would center on historical analysis, while , at the same time, computed by the application of a discount to a fixed rack rate. In this case, there is no achievement of