Revenue management: effectively maximize hotel revenue
Because hotels have western food, Chinese food, flavor restaurants, banquet halls, large seafood cities, etc., the calculation is complicated. However, due to the relatively simple calculation of hotel rooms and accurate data, the actual calculation can be based on the annual room rental revenue and multiplied by a certain coefficient. According to the survey, this coefficient is about 1.9-1.1 in four-star hotels in Shanghai.
Annual catering revenue = annual room rental revenue × coefficient
Current situation of hotel revenue management
According to the American Wall Street Journal, price and revenue management will be one of the most important marginal industries with the highest return rate in the 21th century. In the hotel industry, due to the great influence of revenue management system on the company's decision-making and profit-making, the management of many famous hotel groups in the world, especially the major hotel groups in Europe and America, attach great importance to revenue management, and have established special revenue management departments successively, and equipped with computer systems that can analyze a large amount of data and optimize it in real time. These systems are connected with the hotel's front desk system, pre-sale system and database, which provides multifunctional and fast decision-making assistance for hotel management, making the hotel change from passive management to active control, thus gaining the first opportunity in market competition. According to Mr Willard marriott, Jr., the chairman and ceo of Marriott, the largest hotel group in the United States, "revenue management must be implemented from the top of the hotel, and the ceo needs to support this work 111%, and all employees must understand its functions". Mr. marriott's words not only illustrate the importance of revenue management, but also make a very important point, that is, revenue management must be successful with the participation and efforts of the whole company. According to the author's many years of experience in revenue management consulting and system development for many large hotels, because revenue management is the product of high combination of computer intelligence and human experience, a successful revenue management is a comprehensive result including system functions, staff quality, rules and regulations and other factors. In many cases, the intervention, support and establishment of a perfect management structure of the hotel's top management are the basis to ensure the effective work of the system. In this regard, the author will write another article.
With the deepening and understanding of users' system functions, managers and management systems can fully interact and complement each other, organically combine the objective accuracy of machines with people's flexible response to emergencies, and further expand the benefits. According to the statistics of some hotels in the United States that carry out revenue management all the year round, price and revenue management has now become the biggest means of profit growth.