Question

Can a hotel or restaurant increase or maintain customer satisfaction after implementing its first revenue management program? Explain your answer.

Answer 1

This is a great topic for class discussion. For example, revenue management is meant to be a long-term approach to improve the overall profitability of the operation. As revenue management is increasingly used by hospitality operations, it is becoming more acceptable to customers. When set up properly, a revenue management program should not interfere with customer satisfaction. As long as the products and services offered still bring a sense of value for money to the customer, they will leave the establishment happy and satisfied. In cases of overbooking, hospitality operations should have a clear and thoughtful process for moving customers to different hotels or flights (often loyal customers are the easiest and most willing to accommodate the needs of the hospitality operation in return for some sort of consolation gift such as extra points or miles, etc.).