Summary
Summary Revenue Management Stenden (Design module)
- Course
- Institution
Summary of revenu management for stenden module design based upon lectures and the book Introduction to Revenue Management for the Hospitality Industry
[Show more]
4 reviews
By: nora63 • 5 year ago
By: larissa_schuur • 5 year ago
By: stefponne • 7 year ago
By: ruurddoorten • 8 year ago
too extensive
Seller
Followreunite
Reviews received
Content preview
Introduction to Revenue Management for the Hospitality IndustryImportant calculations
Actual revenue: rooms sold x actual room price
Maximum revenue: rooms available x highest published price
Occupancy: rooms sold / rooms available x 100
RevPar: actual revenue / rooms available
RevPor: actual revenue / rooms sold
Yield: actual revenue / maximum revenue x 100
Fair share: max. revenue own hotel / max revenue market x 100
Actual share: actual revenue own hotel / actual revenue market share x 100
Chapter 4. Market segmentation and selection
Market segmentation: dividing a market into smaller specific segments, sharing the
same characteristics.
Demography: study of characteristics of a population. (Age, gender, education,
income, religion, nationality etc).
Frequent traveller programme: to reward loyal patronage and encourage repeat
business.
Transient: temporary individual hospitality customer
- alone and purchasing a product for a short time
Group business: more than 2 individuals coming together for a common
reason (football team flying together etc).
Sub segments:
Leisure
- Vacation
- VFR (visit friends & relatives)
- special events (weddings)
Business
- Job responsibility
- Attending trainings
- Conferences with co workers
(corporate, government, associates)
See page 44 for more information
Wholesaler: a person who purchases individual travel components at a discount,
based on volume and repackages the components and sells them to a consumer on
retail basis, either directly through the wholesaler organization or via a travel agent/
tour operator.
Free sell: rooms considered to be sold, based upon space
Wash factor: predetermined percentage of usage based upon historical data and
experience.
Environmental scanning: constantly monitoring and assessing the environment to
spot changes and emerging trends.
American generational sub segments:
Silver haired senior aka The silent generation
- born to 1946
- survived 1st/2nd world war
- don’t broadcast purchase intentions
- expect value for their money
, Baby boomers
- born between 1946 – 1964
- anxious and ready to spend
- highest medium income of all generations
- no plans to retire
Generation X aka Baby busters
- born between 1965 – 1976
- very individualistic
- extremely value aware
Generation Y aka Echo boomers
- born between 1977 – 1994
- extremely comfortable with technology
- extremely brand conscious
Millennials
- born after 1994
Based upon market segment & trend analysis, organizations will be able to develop new
products and services to attract and retain their desired mix of customers.
Displacement: replacing one customer for another
Displacement analysis: company assesses the worth of one customer vs. another
Customer worth: how much value a particular customer is to a company
Customer value: how much the customer wants/needs the product (worth of product)
Primary purchase: main purchase made during a single/series of transactions
Ancillary purchase: supplementary or additional purchase made during a single/series
of transactions.
Total Customer Worth = Primary Revenue + Ancillary Revenue – Acquisition Cost
Total CW = (Primary Rev+ Ancillary Rev – Acquisition Cost) x Propensity Y
Propensity Y: How often a guest comes
Example:
Esther comes 10 times a year at hotel Ommen, pays €250 per night per room and eats diner
€35 + breakfast €15. €1 per visit acquisition costs.
CW = 250 + 50 (35+15) – 1 x 10 = €2990
CRM (Customer Relationship Management): to describe strategies and tactics
developed to acquire and retain customers.
Chapter 5. Internal assessment and competitive analysis
Competitor: a rival with whom one competes
Competitive set: an organization’s primary direct competitors
Secondary competitors: not in organization’s competitive set, but must stay visible on
organization’s radar.
Competitive intelligence: the practice of conducting primary research and analyzing
secondary research to understand the characteristics of competitors.
SCIP: Society of Competitive Intelligence Professionals
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller reunite. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.23. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now