Question

How does a hotel property manager respond to the challenge of revenue management?

Answer 1

Revenue management aim is to increase revenue at the right place and right time. It is the pricing and distribution techniques to sell your hotel property's perishable inventory to the right guest at the right time to increase revenue. Simply saying it is essential for the financial stability and smooth functioning of the hotel business. Hotel property manager requires forcasting veriour elements such as demand, pricing, inventory and market situation. These elements performance is essential and it's performance depends on the quality of these forecasts.

There are some challenges in revenue management system.These are,

1, Expansive Skills

2,Technology

3,Communication

4 ,Cost of distributions

Expansive skills :- A revenue management role must require a set of specialised skills and knowledge. In the absence of these will affect the revenue management and proper implication is not possible.

Technology:- Nowadays technology has it own clear space in business. Most of the business is running with technology. Online booking in holtels and advertising business is increasing and it will reduce cost of distribution.

Communication:- As proper revenue management is purely depends on proper communication. Communicate different mangement in hotels is essential.

Cost of distribution:- Measuring cost of distributions is essential.The aim of revenue management is to reduce cost and maximize revenue.

As a hotel property manager should face challenges in revenue management is online sales, pricing, distribution and strategies to maximize revenue. Manager should face these challenges and convert it to revenue. Online hotel reservations helps to reduce cost of distributions and at the same increase productivity. Manager is ready to face challenges from revenue management because it is essential for the existence of the business.