The discipline of Revenue Management for the hospitality sector has come along way in recent years! The deregulation of the airline industry in the seventies led to the increased use of what we now call dynamic pricing or revenue management (RM) techniques. Readers will be familiar with the changing price of airline seats and car hire depending on the demand. Hotels are now using these techniques with more and more sophistication as the technical tools develop to make more and more combinations of price possible. The accommodation sector has very similar traits to that seen in the airline or car hire sector, these are fixed capacity, variable demand and high fixed costs. But what about other elements of the hotel revenue? Revenue from conference and banqueting and also from food and beverage? Can RM techniques be used effectively in these parts of the business not just to discount prices when demand is low but also to lift prices when demand is high? Head Trainer at arena4finance, Debra Adams, thinks that these techniques can be used successively across the hospitality sector when the training is in place to support teams coupled with the appropriate technological tools. To read more about this exciting topic take a look at this publication from the Caterer featuring a range of articles on RM techniques for hospitality.
Click here to read the full publication.
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