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.