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Revenue Management

publication date: Feb 13, 2020
author/source: HospitalityEducators.com Resources

Revenue Management

Turn-around and Revenue Management include an evaluation of the core processes used in the overall hotel marketing and promotional activities by the hospitality staff assigned.  These processes include the critical pricing activities of selling and working with other hospitality businesses in the creation of packages that add value.

The Four-Step Approach used in in all assignments is detailed in the Overview of Hospitality Consulting, and includes discussion of perceived problems with the client, preparation of a detailed  SWOT analysis, identification of strengths and recommendations for addressing the challenges. 

Hotels and Hospitality Packaging Case Study - This was an atypical assignment, as regional government offices were seeking ways to teach non-related hospitality businesses to explore different pricing strategies and to work together in creating new venues that could then be promoted.  Reducing unemployment was also an interest for both the government and private sector entities.  The government officials contacted and eventually selected me on a competitive basis, after reading several of my published columns and verifying results from other hotel and hospitality clients.

A series  of preliminary discussions were held to find shared interests and pricing approaches.
  1. Discussions revealed most of the hospitality businesses (hotels, restaurants, ground tour/travel companies, retail, etc) knew of each other but had not seriously addressed working together.
  2. The SWOT analysis identified that pricing patterns were based on individual practices and historical patterns  Adding value was viewed as complex and hard to administer.
  3. Strengths included:  committed entrepreneurs who wanted to evolve from the past and who were open to new approaches. Many small, family operated hospitality business were among this group.
  4. Recommendations included:  increased use of technology, structured channels of communication supported by the government, best practice forums to share success stories and creative pricing packages that allowed more cross selling among the hospitality entities
Results:  Several series of workshops in four provinces were held over several months that allowed all parties to learn the new approaches. The synergies paid off in a reduction of closed hospitality businesses, higher hotel tax revenues and a measurable growth in hotel occupancies and hospitality business revenues.  Local hospitality associations became the ongoing educational conduit.

An article on this subject matter and related topics are found on this site under Articles, with even more at www.hospitalityeducators.com.

If you are interested in having me work with you, please contact me for a no-cost discussion at john@hoganhospitality.com. or call me at 602-799-5375

Contact me for ideas on proven ways to help you and your teams focus on Hotel Profitability Ratios, Hotel Guest Services, Hotel Sales and Marketing Ideas, and Hotel Operations

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