Revenue Management in the Hotel Industry
- Credits: 4
- Ending: Examination
- Range: 2C
- Semester: summer
- Year: 2
- Faculty of Commerce
Teachers
Included in study programs
Teaching results
Knowledge
The student will gain theoretical knowledge about the basic principles of maximizing income through hotel operations. This is specific knowledge that develops the student's knowledge of economics and business control.
Knowledge
The graduate of this course has the prerequisites for the performance of revenue manager in a hotel or in a hotel company. In accordance with the above job position, it will decide on the hotel's pricing strategy based on sophisticated modeled cost-benefit calculations. These decisions will be linked to decisions on alternative forms of distribution. The Revenue Manager will make decisions based on evidence obtained from relevant employees.
Skills
The Revenue Manager will lead a team of employees who process the documents needed for revenue management. His ability to work systematically in a team will create conditions for the successful implementation of revenue management. Working with data requires perfect skills in working with revenue management software. English language skills are the basis of professional communication and a prerequisite for working in international hotel companies or in independent hotels abroad. team and excellent system work communication.
Indicative content
Revenue management and its use. Performance measurement - internal and external matrix. Forecasting available capacity in relation to demand. Reverse management marketing strategy. Analysis of the exchange (transfer) of the guest and its economic expression. Price management and pricing strategies. Prices of package products. Product distribution and its effectiveness. Revenue management automation.
Support literature
HAYES, D. K., HAYES, J. D., HAYES, P. A. (2021). Revenue Management for the Hospitality Industry. Spojené kráľovstvo: Wiley.
Hospitality Revenue Management: Concepts and Practices. (2020). Spojené štáty americké: Apple Academic Press.
PETŘÍČEK, M. (2021). Revenue management v ubytovacích službách: výstavba stochastického optimalizačního modelu. Česko: Wolters Kluwer.
ROBERTS, D. (2022). Hotel Revenue Management: The Post-Pandemic Evolution to Revenue Strategy. Spojené štáty americké: Business Expert Press.
VINOD, B. (2022). Revenue Management in the Lodging Industry: Origins to the Last Frontier. Nemecko: Springer International Publishing.
VOUK, I. (2022). Hospitality 2.0: Digital Revolution in the Hotel Industry. Spojené štáty americké: Lulu.com.
Syllabus
1. Revenue management and criteria for its effective use 2. Performance measurement, internal performance matrix, internal measures in accordance with the basic indicator RevPar 3. External performance matrix, measures in line with market developments 4. Forecasting, basic pillar and assumption of tactical management in the long and short term. Forecasting available room capacity in line with demand 5. Tactical management of price rates. Types of price rates: discounts, over-the-counter sales, dynamic prices in line with demand 6. Length of the guest's stay in terms of hotel capacity management. Preventive actions. 7. Analysis of transfer (exchange). Conversion of net income / room depending on cost and demand. Differences in net income and the decision to transfer a guest 8. Strategic revenue management. Demand 9. Marketing strategy of revenue management in a hotel. Market segmentation methods. Market targeting, market positioning 10. Pricing strategies. Price competitiveness. Price rate parity. Differentiated price lines. 11. Prices of package products. Processes of package development and their evaluation in conditions of differentiation. 12. Distribution management. Efficiency of multi-source distribution channels. 13. Automated revenue management systems.
Requirements to complete the course
Case study of revenue management in a specific hotel in a simulated market environment
Knowledge of the theoretical basis for maximizing "revenue" in hotel operations
Passing the exam
10% continuous written work
30% semester work
60% written exam
Student workload
Total workload: 104 hours
Attendance at seminars and case study simulation: 26 hours
Preparation for the seminar, homework processing: 36 hours
Preparation for the exam: 42 hours
Date of approval: 09.02.2023
Date of the latest change: 20.02.2024