An Introduction to Revenue Management for the Hospitality Industry: Principles and Practices for the Real World

Riding the Rails......Page 1
Contents......Page 4
Preface......Page 12
Acknowledgements......Page 15
Author Biographies......Page 16
CHAPTER 1 An Introduction......Page 20
 To the Four Corners of the World: Defining Revenue Management......Page 25
 Internet Exercises......Page 27
 Reference......Page 28
CHAPTER 2 A History......Page 30
 All Aboard!......Page 31
 See the U.S.A. in Your Chevrolet . . .......Page 33
 No Vacancy......Page 34
 The House the Animated Mouse Built......Page 35
 Up, Up, and Away . . .......Page 36
 Flying the Not-So-Friendly Skies . . .......Page 37
 Revenue Management Moves Inn . . .......Page 40
 Summary......Page 41
 References......Page 42
CHAPTER 3 Customer Knowledge and Consumer Behavior......Page 44
 Today's Prosumers......Page 45
 Consumers and the e-Commerce Evolution......Page 46
 Bundling and Pressing Time......Page 48
 The Price/Value Relationship......Page 49
 Marketing Intelligence......Page 51
 Summary......Page 55
 References......Page 56
CHAPTER 4 Market Segmentation and Selection......Page 58
 Market Segments and Subsegments......Page 59
  Contracts......Page 61
  Group Segment......Page 62
 Wholesale Terminology......Page 63
 Trend Analysis and Generational Targeting......Page 65
 Displacement Analysis and Total Customer Worth......Page 68
 Total Customer Worth and Total Customer Value......Page 70
 Selection of the Optimal Mix of Business......Page 71
 Key Terms and Concepts......Page 73
 References......Page 74
CHAPTER 5 Internal Assessment and Competitive Analysis......Page 76
 Identifying the Competition......Page 77
 Competitive Intelligence......Page 79
 The SWOT Analysis......Page 81
 Competitive SWOT Analyses......Page 84
 Positioning......Page 86
 Developing Strategies Based upon the SWOT Analysis......Page 87
 Summary......Page 90
 Experiential Exercise......Page 91
 References......Page 92
 Opportunity Costs......Page 94
 Supply and Demand......Page 96
 Substitutes, Complements, and Inferior Goods......Page 100
 Price Elasticity......Page 102
  Calculating the Percentage Changes......Page 103
  Revised Formula for Calculating Elasticity......Page 104
 Factors Impacting the Elasticity of Demand......Page 105
 Managing Demand......Page 106
 Demand Forecasting......Page 109
 Key Terms and Concepts......Page 112
 References......Page 113
 Reservation Evolution......Page 116
 The Early Channels......Page 118
 Global Distribution Systems (GDS)......Page 120
 Internet Distribution Systems (IDS)......Page 122
 Distribution Cost......Page 125
 Channel Selection......Page 127
 Summary......Page 129
 Reference......Page 130
CHAPTER 8 Dynamic Value-Based Pricing......Page 132
 A Value-Based Approach to Pricing......Page 133
 Product or Service Life Cycle......Page 136
 Customer Loyalty and Brand Equity......Page 137
 Internal Price/Value Assessment......Page 139
 Price Positioning......Page 140
 The Impact of Demand on Price......Page 144
 Channel Pricing Strategies......Page 147
 Discounting......Page 148
 Best Available Rates......Page 149
 Secret Pricing Formula Revealed!......Page 150
 Pricing Alphabet Soup......Page 152
 Summary......Page 153
 Internet Exercises......Page 154
CHAPTER 9 Channel and Inventory Management......Page 156
 Hospitality Inventory Warehouse......Page 157
 Nonelectronic Channel Management......Page 160
 Electronic Channel Management......Page 161
 Competitive Analysis of Price and Inventory......Page 164
 Inventory Management Process Per Channel......Page 166
 Discussion Questions......Page 169
 Internet Exercises......Page 170
CHAPTER 10 The Revenue Management Team......Page 172
 Courses to Take......Page 177
 Useful Experience......Page 178
 Compensation: Salaries and Bonuses......Page 179
 Roles and Responsibilities......Page 182
 Revenue Management Meetings......Page 189
 Discussion Questions......Page 193
 References......Page 194
CHAPTER 11 Strategic Management and Following the RevMAP......Page 196
 The Process......Page 197
 The External Environmental Assessment......Page 198
 Goals and Objectives......Page 201
 Execution of Strategies and Tactics......Page 205
 Analysis, Evaluation, and Adjustment......Page 206
 The Strategic Revenue Management Process and Our RevMAP......Page 207
  Analysis, Evaluation, and Adjustment......Page 210
 Discussion Questions......Page 213
 Internet Exercises......Page 214
 Step One: Customer Knowledge......Page 216
  Strategies and Tactics to Consider for Acquiring and Retaining Customers......Page 218
 Step Two: Market Segmentation and Selection......Page 219
 Step Three: Internal Assessment......Page 220
  Strategies and Tactics to Consider Regarding the Organization's Internal Assessment......Page 222
 Step Four: Competitive Analysis......Page 223
 Step Five: Demand Forecasting......Page 225
 Step Six: Channel Analysis and Selection......Page 226
 Step Seven: Dynamic Value-Based Pricing......Page 228
 Step Eight: Channel and Inventory Management......Page 229
  Strategies and Tactics to Consider for Channel and Inventory Management......Page 231
 Electronic Resources......Page 232
 Internet Exercises......Page 236
 The Issue of Price......Page 238
 Revisiting the Price/Value Relationship......Page 239
 What Is Considered to Be Fair?......Page 240
 Pricing Laws to Protect Consumers......Page 242
 Potential Bumps in the Road......Page 243
 References......Page 248
CHAPTER 14 Crystal Ball......Page 250
 Searching the Internet......Page 251
 Key Terms and Concepts......Page 259
 Reference......Page 260
 The Lofty Pines Lodge and Ski Resort......Page 262
  Overview......Page 264
  Possible Results......Page 265
 Chic B'tique......Page 268
  Abbreviated SWOT Analysis for the Chic B'tique......Page 270
  Overview......Page 271
  Possible Results......Page 272
 Scrumptious!......Page 276
  Abbreviated SWOT Analysis for Scrumptious!......Page 277
  Overview......Page 278
  Possible Results......Page 279
 Internet Exercises......Page 282
 Granite Palace......Page 284
  Abbreviated SWOT Analysis for the Granite Palace......Page 286
  Overview......Page 287
  Possible Results......Page 288
 Tunes, A Lyrical Bowl......Page 290
  Abbreviated SWOT Analysis for Tunes, A Lyrical Bowl......Page 291
  Possible Results......Page 292
 Metropolis Convention Center......Page 294
  Overview......Page 295
  Possible Results......Page 296
 Summary......Page 297
 Internet Exercises......Page 298
 Skimmer Cruises......Page 300
  Overview......Page 302
  Possible Results......Page 303
 Coachman's Seaside Paradise......Page 306
  Abbreviated SWOT Analysis for Coachman's Seaside Paradise......Page 307
  Overview......Page 308
  Possible Results......Page 309
 Quiescence Spa Retreat......Page 311
  Abbreviated SWOT Analysis for Quiescence Spa Retreat......Page 312
  Overview......Page 313
  Possible Results......Page 314
 Experiential Exercise......Page 315
 Internet Exercises......Page 316
 The Crags Oceanside Golf Resort and Spa......Page 318
  Abbreviated SWOT Analysis for the Crags Oceanside Golf Resort and Spa......Page 319
  Overview......Page 320
  Possible Results......Page 322
 The Desert Snow Castle Resort Casino......Page 325
  Overview......Page 326
  Possible Results......Page 328
 Childhood Classics Theme Park......Page 329
  Abbreviated SWOT Analysis for Childhood Classics Theme Park......Page 330
  Overview......Page 331
  Possible Results......Page 332
 Summary......Page 333
 References......Page 334
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 L......Page 339
 O......Page 340
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 R......Page 342
 S......Page 343
 W......Page 344
 Y......Page 345
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 I......Page 348
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 Y......Page 352