Revenue Management in Hotel Industry

Introduction Today, the use of revenue management has changed dramatically in the past few decades. Because revenue management shows its importance in the industry, revenue managers currently have a strategic role to predict future weeks and months as well as to analyze and apply the opening and closing prices I will. They are now responsible for managing the revenue of assets that will be the source of revenue for other hotels. They also work closely with colleagues in the marketing department to interact with competitors and predict competitors' behavior.

However, there are some concerns about the applicability of revenue management in the hospitality industry. Kimes (1989) and Orkin (2003) have identified several difficulties in the potential application of accessibility management strategies. The first is how many nights to stay. Airline sheets can be used only once a day. However, guests arrive at low prices on the same day, and can enjoy several high price schedule. This causes problems in rate determination. Another important thing is the multiplier effect. By focusing on revenue that can be generated by the accommodation function, hotel executives may overlook the potential income that may arise from other areas of the hotel, such as restaurants, bars, banquets, conferences and leisure facilities . In addition, the lack of a clear pricing structure is another problem. However, there are few hotels with such restrictions

The problem with hotel technology is that "hotel" is not a market. It is vertical, but it is not a market. Inside the hotel there are various markets such as income manager, general manager, marketing, online sales, direct income, online distribution, housekeeping, food and beverage manager. There is a big problem in finding products / market fitness (PMF) you can not understand. It broke two secondary problems. First, many founder do not know what work at the hotel means, so they do not understand the way users think in the future.