财务决策RevenueManagementPPT课件.ppt

2020 3 21 1 RevenueManagement Today slecture PurposeofRevenueManagementImportanceofRevenueManagementNatureofRevenueManagementMeasuringtheneedforRevenueManagementCharacteristicsconducivetoRevenueManagementRevenueManagementsystemrequirementsUsingratecategoriesanddemandforecastsLengthofstaycontrolsManaginggroupbookingsRevenueManagementimplementationissues 2020 3 21 2 Thepurposeofrevenuemanagementistomaximisetotalrevenuebyusingdemandforecaststodeterminewhatpricetochargeforaclassofroomsonaparticularday 1 PurposeofRevenueManagement Ifdemandforaparticularnightislow arevenuemanagementsystemwouldindicatethatpricesforthatnightshouldbedroppedinordertominimiseunsoldroominventory Ifdemandforaparticularnightishigh arevenuemanagementsystemwouldindicatethatroomsshouldnotbereleasedatdiscountedratestogroupbookings 2020 3 21 3 Revenuemanagementhasnowbecomeanoperatingprocedurewidelyusedinthehotel eventmanagementandprofessionalsportsteamsectors Awelldevelopedrevenuemanagementsystemcangreatlyincreaserevenueandreducetheguessworkinvolvedinsalesmanagementdecisionmaking 2 ImportanceofRevenueManagement Ithasbeenclaimedthat A5 reductioninsalesexpensesincreasesprofitsby3 a5 increaseinsalesvolumeincreasesprofitby20 anda5 increaseinsellingpriceincreasesprofitby50 Cross 1997 p 43 2020 3 21 4 3 NatureofRevenueManagement AhotelGMwouldliketosellallroomnightsattherackrateallyearlong Iftheyattemptedtodothis therewouldbemanytimesintheyearwhenmanyroomswouldnotbesoldandrevenuewouldthusbelost Ontheotherhand ifahotelweretosellallitsroomsatlowrates therevenuethatcouldhavebeenearnedfromcharginghigherrateswouldbelost Revenuemanagementseekstofindamiddleareabetweenthesetwoextremestominimise Lostrevenuefromroomsnotbeingsold Lostrevenuefromsellingroomsatpricesbelowwhattheycouldhavebeensoldat MinimisingthesetwofactorssignifiesmaximisingRevenueperavailableroom RevPar 2020 3 21 5 Objective Minimiselostrevenuefromroomsnotbeingsold Minimiselostrevenuefromsellingroomsatpricesbelowwhattheycouldhavebeensoldat Measure Ondateswhenthepropertysellsout determinehowfarinadvancetheselloutoccursanddevelopanestimateofthenumberofpotentialrackratesalesthatarelostduetoroomssoldatadiscount Ondateswhenthepropertyisnotsellingout estimatehowmuchlowratecategorybusinessthehotelturnedaway 4 Measuringtheneedforrevenuemanagement Ifthesetwofactorsaremeasured greaterattentionwillbedirectedtomanagingthemappropriately Twoadagesarepertinent Whatgetsmeasurediswhatgetsmanaged Yougetwhatyouinspect notwhatyouexpect 2020 3 21 6 5 Characteristicsconducivetorevenuemanagement 1 FixedcapacityOnceahotelhasbeenbuilt itisrelativelyexpensivetoincreaseitscapacity 2 AbilitytosegmentmarketsAhotelcansplititsmarketintobusinessandholidayguests Itmightwellbeappropriatetoselllowerpricedroomstoholidayguestswhomustbookbyacertaindatetosecureadiscountedprice Itmightbeappropriatetosellhigherpricedroomswithnopenaltyforlatebookingtobusinessguests 3 PerishableinventoryRoomsareclearlyperishable Ifaroomisnotsoldonaparticularnight thatroomnightsalehasbeensquanderedforever itcannotbeputintoinventoryforsaleatalatertime 2020 3 21 7 5 Characteristicsconducivetorevenuemanagement 4 ProductsoldinadvanceWhenproductsaresoldinadvance managersconfrontuncertainty Ifatravelagentisseekingadiscountedgrouprateforabookingin6monthstime shouldthehotelmanagermakethesaleandlosethepossiblehigherrevenuethatwouldresultiftheroomsweretobesoldclosertothebookeddatestohigherpayingguests Agoodrevenuemanagementsystemcanhelpanswerthistypeofquestion 5 FluctuatingdemandHotelsconfronthighvolatilityindemand byseasonandbydayoftheweek Revenuemanagementcanspreadthisdemandbycharginglowerpricesduringquiettimesandhigherpricesduringbusytimes 6 LowvariablecostsOnceacertainnumberofroomshavebeensold theincrementalcostarisingfromonemoreroomsaleislow 2020 3 21 8 6 RevenueManagementSystemrequirements 1 KnowledgeofreservationbookingpatternsImagineahotelhassold40 ofitsrooms30daysbeforearoomsalenight Itneedstoknowthelikelihoodofsellingtheremaining60 fortheroomnightinquestionoverthenext30daystodeterminewhetheritneedstodropitsquotedroomrateortoseekgroupbookingsatadiscountedprice Thissignifiesitneedsaknowledgeofreservationbookingpatterns 2 DemandpatternsbymarketsegmentAhotelneedsinformationonhistoricaldemandbymarketsegment Thisdataneedstobeattheleveloftimeoftheyearandalsodayoftheweek Thisinformationenablessalestobetrackedatthemarketsegmentlevel 3 OverbookingpolicyDuetocancellationshotelsfrequentlyoverbook TheextenttowhichahoteliscomfortabletooverbookneedstobefactoredintotheRMsystem 4 PricechangeeffectsAstheRMsysteminvolvesvaryingpricestoaffectsalesvolume managersneedtoknowhowmuchaparticularpricechangeforaparticularroomtypeataparticulartimeofyearwillchangethevolumeofbookings priceelasticity 2020 3 21 9 7 Usingratecategoriesanddemandforecasts Ratecategories 1 2 3 4 Discountoffrackrate Availablerooms Demandforecast None 500 380 1 10 120 63 21 35 57 75 11 20 140 Ratecategories 1 2 3 4 Roomssold Anticipatedroomssold30daysout Implications 200 300 Recognisethatratecategory1isunlikelytoachievetarget increasequotaforlowerratecategories 60 58 72 70 Imaginethisisforsaleson31stJuly Todayis1stJulyandsomeratecategorymanagementhasalreadyoccurred Currentscenario 2020 3 21 10 8 Lengthofstaycontrols Ratecategorycontrolistheideaofhavingoneroomnightatafuturedatelefttosell anddecidingwhethertosellitfor 100todayortoholdoutfor 150tomorrow Length of staycontrolistheideaofhavingoneroomtosellon10thDecemberandwhethertosellitforjust10thDectodayorwaitingtoseeifitcanbesoldfor10th 13thDectomorrow Aratecategorydecisioncanmarginallyincreaserevenueforonenight butacorrectlength of staydecisioncanincreaserevenueforseveralnights Learnhowtoconvertundesirablebusinessintodesirablebusiness Similartosettingandusingratecategories lengthofstaymanagementrequirespriordatafordifferentlengthofstayperiods ARMmanagerneedstoknowtheprojectednumberofarrivalsonaparticulardatefor1night 2nights 3nights etc Thiswillhelpindeterminingifthereisjustificationinturningawaya1nightbooking ora2nightbooking onaparticulardate Revenuemanagementsystemsallowarevenuemanagertoblockbookingsfor say 1 4 5nightstays buttokeepopenbookingsfor2 3 6and7nightstays andlonger 2020 3 21 11 9 Managinggroupbookings Revenuemanagementisoftensimplythoughtofintermsofturningawayundesirablebusinessduringhighdemandperiods Toooftenhotelmanagersdenyagroup srequestoutrightorfocusonadjustingthegroup sproposedratetosuitthehotel sthresholdratefortheperiodinquestion Itmightbebetterto Learnhowtoconvertundesirablebusinessintodesirablebusiness Ineffect arevenuemanagershouldlookatthreeoptions changethe1 rate 2 datesor3 space A ChangethedatesFocusongivingagrouptherateitrequestsbutduringaperiodwherethehotel soccupancyisforecasttobelow B ChangetheamountofspaceThegroupcouldbeaskedtoadjustthenumberofroomsitisseekingtobook 2020 3 21 12 9 Managinggroupbookings datechange Imagine unexpectedly agroupasksfor200roomsata350roomhotelfor 80perroom Thisrepresents 16 000worthofbusiness Forecastsindicatethatwithoutthisincrementalgroupbooking roomrevenueforthenightwouldbe 29 000 ie 290roomssoldat 100 Thegroup sbusinesswillraiseoccupancyto100 andcontributetowardstotalrevenueof 31 000 Learnhowtoconvertamediocrepieceofbusinessintogreatbusiness Roomssold 290 200 group 150 non group Rate Revenuefornight 100 29 000 80 16 000 15 000 100 31 000 Scenario1 nogroupbooking Scenario2 withgroupbooking Thissignifiesthatthe 16 000worthofgroupbusinesshasactuallyonlyincreasedrevenueby 2 000 2020 3 21 13 9 Managinggroupbookings datechange Ifthenextmonthhaslowforecastoccupancy whynotsaytothegroup Wewilldropyourroomrateto 60ifyoubookinthesubsequentmonth Therevenuefromthegroupbookingwouldbe 12 000 200X 60 Imaginethattheforecastsaleswithoutthisbookingis40nightsata 100rate Thiswouldsignifynodisplaced 100roombookings Roomssold 40 200 group 40 non group Rate Revenuefornight 100 4 000 60 12 000 4 000 100 16 000 Scenario1 nogroupbooking Scenario2 withgroupbooking Thehotelhasincreaseditsrevenueby 12 000fromthegroupbooking significantlyupfromthe 2 000incrementalrevenuearisingifthegroupbookingweretobemadeintheearliermonth asshownonpreviousslide 2020 3 21 14 9 Managinggroupbookings spacechange Ifthedatechangeproposalisnotacceptabletothebookingagent anattemptcouldbemadetonegotiatewiththeagentforareductionintheamountofroomsbookedintheearlierperiod Scenario1 200roomgroupbooking Afurther 2 000inrevenuehasbeenearned 100roomsgenerating 20each 100 group 250 non group 80 8 000 25 000 100 33 000 Scenario2 100roomgroupbooking 200 group 150 non group 80 16 000 15 000 100 31 000 Iftheroombookingintheearliermonthcouldbereducedby50 thiswouldresultin100roomsfreeduptobebookedbynon groupbookingclientsfor 20moreperroom ie 100eachinsteadof 80 X X X X 2020 3 21 15 10 RevenueManagementimplementationissues 1 AvoidalienatingcustomersAirlinecustomersmaybemoreacceptingofsimilarflightseatssellingfordifferentpricescomparedtohotelcustomerspayingdifferentpricesforthesamequalityofroomonthesamenight Ifhotelcustomersbecomedisenchanted theyprobablyhaveagreaterchoiceofhotelsrelativetothechoiceofairflightsavailabletoanairlinecustomer 2 EmployeemoraleissuesRevenuemanagementsystemstakemuchoftheguessworkoutofdecisionsconcerninghowmanyroomstosellandatwhatprice Thiscanfrustrateamanagerwhoisusedtoexercisingdiscretioninsuchdecisions ItcanthereforebeimportanttoviewtheRMsystemasaninformationresource butnotnecessarilyasthefinitedecisionmaker 3 IncentiveandrewardsystemsStaffingroup salesdepartmentsareoftenrewardedbasedonthenumberofgroupsalesachieved ThisincentivewillhavetobemodifiedasaRMsystemcanresultinreducedgroupbookings Also nomanagersshouldberewardedonoccupancylevelsoraverageroomrate Staffshouldberewardedbasedo