See the attached file.
Please Note: I work for a large hotel chain, and I have attached all the reading material pertained to this course worksheet in the attachment section.
Just looking on guidance how to get started
1. Question One
Recall the opening scenario at the Random Stays Hotel. There you played the role of someone tasked with investigating refinements to revenue management. The resources in this topic should have given you some ideas about how this could be done at an organization like yours as well as at a place like the Random Stays.
Identify below your industry/function or one you choose to work on.
2. Question Two
Recall that Professor Kimes discussed the following points with respect to refining revenue management practices:
Managing group and volume accounts
Regional and centralized management
Cluster approach managing several brands as members of the same brand family
Are any of these points relevant to your chosen organization? If so, please indicate how you might approach them from a revenue management standpoint. Moreover, how would you investigate the potential of these areas for increased revenue?
3. Question Three
Now that you have read Professor Kimes article about restaurant revenue management, how would you compare and contrast hotels and restaurants as revenue management candidates? Specifically, how do these two industries compare with respect to the strategic levers of revenue management?
4. Question Four
Now think about the organization you have chosen for your course project. How does that organization compare to a hotel in terms of suitability for revenue management? (If your organization is a hotel, you can focus on key aspects of your hotel that differ from those of an ideal candidate for hotel revenue management. If your organization is a restaurant, you can focus on key aspects of your restaurant that you would focus on when creating a revenue management plan.)
5. Question Five
Now identify two revenue management extension opportunities at your chosen organization. If there are currently no good candidates for revenue management extension at your organization, please suggest two hypothetical units or areas or two industries not considered in this course. What makes these candidates good choices for revenue management? How would you focus your efforts in these units or in these industries?
6. Question Six
Examine the revenue consequences of shortening the tee time at a golf course such as Talking Stick. For this calculation, assume that:
The course is open for 12 hours.
The tee-time interval is 10 minutes.
Players require four hours to complete 18 holes.
Players need to complete all 18 holes before the course closes.
The maximum number of players per party is 4.
Each player pays a maximum of $145/person on weekends.
For those of you who don't play golf, think of a round of golf as dinner at a restaurant:
The tee-time is the reservation time.
Up to 4 people can sit at each table.
It typically takes 4 hours from the time someone sits down at the table until they have completed the meal, paid the bill and left.
Each meal costs $145/per person.
In order to be sure the kitchen can accommodate everyone properly, the restaurant requires an interval of 10 minutes between reservations. So if a reservation is made for 6 pm, the next available reservation is 6:10 pm, then 6:20 pm and so forth. In the second part of the question, you will assess the financial impact of reducing the interval between reservations to 9 minutes in other words, 6 pm, 6:09 pm, 6:18 pm, and so on.
The restaurant opens at 7 am and closes at 7 pm.
Using these data, the maximum number of parties per day at Talking Stick is _____________
When the tee-time interval is 10 minutes, the maximum total revenue per day is ________
Now lets look at tee-time intervals of nine minutes. All other assumptions above still apply.
Using these data, the maximum number of parties per day is ________
When the tee-time interval is nine minutes, the maximum total revenue per day is ______
How much extra revenue is possible with the new nine-minute tee-time interval? _________
7. Question Seven
Consider the five steps of the revenue management approach and how you might apply these steps at your chosen organization.
1. Establish the baseline
2. Understand the causes
3. Develop a strategy
4. Implement the strategy
5. Monitor the impact
If you have relevant information about your organization, use it to establish your baseline. If you don't, make some guesses about your organization's performance based on what you do know, and use those for the baseline. In step two, include one or more causes you believe are behind these baseline findings. Then, considering your notes for steps one and two, recommend a strategy in step three. For example, how would you attempt to manage things such as the uncertainty of arrival and duration, and how would you manage price? Finally, list several considerations you'd like to keep in mind when you implement your strategy, and describe how you would monitor the outcome.
8. Question Eight
In the essential reading for this topic, we learn that Kimes and McGuire chose to measure what they call ConPAST in their revenue analysis. Why did they focus on contribution instead of revenue at Raffles?
9. Question Nine
The opening scenario for this topic presents two tables containing day-part-contribution data for three function spaces. These two tables present two views of the same data. What reasons can you think of for providing either one of those views or for providing both of them?
10. Question Ten
Finally, please revisit your recommendations for the five steps at your chosen organization and all the notes you've made about the suitability of revenue management, refining revenue management, extending revenue management, and calculating revenue gains. Using these notes and the five steps as a framework, compose the final draft of your revenue management plan. If you haven't already, include how you would present your revenue management plan to your boss and to other employees. When you have answered all the worksheet questions and have completed your revenue management plan, please send the worksheet to your instructor.
Running head: Alternative means for Hotel Revenue Management
ALTERNATIVE MEANS FOR HOTEL REVENUE MANAGEMENT
The type of industry I choose to work on is the manufacturing industry and more so in the beverage industry. It is a large industry that is highly dynamic whereby new products are introduced into the market frequently. The industry is complex and has numerous businesses that operate locally and internationally.
Distribution channel management, customer relationship management, IT integration, regional and centralized management, and cluster approach are relevant to my organization. The organization is a multinational company thus distributes its products across the globe and therefore requires managing its distribution channel. The organization has its own distribution systems and also has partnered with other distributors thus must manage its distribution channel to ensure efficiency and effectiveness in design and delivery.
The company also markets its brands to different cultures thus requires customer relationship management to ensure that its products are successful by meeting consumer requirements. Coca-Cola also requires IT integration in daily operations especially in maintaining inventory, distribution and also financial activities. The use of IT is aimed at ensuring that operations are running efficiently by ensuring that all functions in the business are properly coordinated. The company has numerous brands under its umbrella from one region to another thus the need for cluster approach (Company Spotlight, 2009).
From a revenue management point of view I would manage the various aspects in such a way that I would derive maximum value. In managing distribution channels I would ensure that distributors receive appropriate levels of discount to effectively move the products. Customer relationship can be managed by offering promotions and providing consumers with a channel to give feedback on products. This will ensure that consumers are attracted to the product thus generating revenue for the organization.
Cluster approach can be managed by conduction promotions that lower prices on brands that are not ...
The solution discusses alternative means for hotel revenue management.