Why is Knowledge of Revenue Management Important for Managers – Part III – Forecasting and Controls

Taking a look at Revenue Management through a six-part article which discusses why the subject is important for managers and gives an overview of the curriculum of Vedatya’s Revenue Management Course.

Understanding the Importance of Forecasting and Availability Controls in Hotel Revenue Management

All successful revenue management strategies are based on the ability to forecast demand accurately, as well as control room availability and length of stay.

This course explores the role of the forecast in a comprehensive revenue management strategy, including the selection of the best type of forecast and the impact of forecasting on other functions such as labor scheduling and purchasing. It presents a step-by-step approach to the mechanics of creating an accurate forecast. Participants learn how to build booking curves; account for “pick-up”; segment demand by market, group, and channel; and calculate error and account for its impact. The course also explores the impact of availability controls, including length-of-stay management, on revenue management and how they can be leveraged.

Participants use Microsoft Excel to practice forecasting and availability control techniques.

Working with Opera: Opera is the most popular Property Management System in Global Hospitality sector. It deals with managing, selling and controlling the inventory and related products. Based on the data that you enter on a day to day basis, it generates various operational and managerial reports. These reports are the most important tool to practice Revenue Management Concepts. By end of this module, you will be able to operate, understand and analyse this PMS functions.

Key Benefits

After completing this course, you will be able to…

  • Explain the role of forecasting in hotel revenue management
  • Create a forecast and measure its accuracy
  • Apply length-of-stay controls to their hotel
  • Manage availability and make rate recommendations based on demand patterns

 Why is Knowledge of Revenue Management Important for Managers – Part I

Why is Knowledge of Revenue Management Important for Managers – Part II

singh_anjanaAnjana Singh has over 10 years of mixed experience in the hospitality Industry and academia, with almost 7 years in academics and 3 years in hotel operations. She has earlier held various operations and decision making positions with some of the major players of the Hospitality Industry – Taj Groups of Hotels, Hyatt Regency and The Imperial, New Delhi, India.

She had secured All India First Position in Annual examination for M.Sc. Hospitality Administration and was awarded Gold Medal, Certificate of Excellence from Ministry of Tourism.

Her Current Teaching assignments are Revenue Management, Human Resources, Intercultural Management in Hospitality, E-commerce, Career Planning, Environmental Management in Hospitality Industry, Developing Management Capabilities and Hospitality Operations. Read more

Why is Knowledge of Revenue Management Important for Managers – Part II

Taking a look at Revenue Management through a six-part article which discusses why the subject is important for managers and gives an overview of the curriculum of Vedatya’s Revenue Management Course.

Introduction to Vedatya’s Revenue Management Course

Revenue management is a systematic process designed to increase revenue by leveraging tools designed to manage length-of-stay and apply effective pricing strategies.

Implementing a revenue management strategy can be one of the most important revenue-generating initiatives available to a hotel, significantly increasing room revenue and profits. This course provides an overview of revenue management applications to the hotel industry designed to inspire a strategic shift to managing revenue per available room (RevPAR).

Revenue management is a systematic process designed to increase revenue by selling the right room to the right person at the right time for the right price. In addition to evaluating different pricing models and applying duration-management strategies, this course provides a foundation for more advanced revenue management courses in forecasting, group management and overbooking, pricing strategy, and application of revenue management techniques to other hospitality-related industries including spas and athletic facilities.

Revenue & Profit Management (Basic skills): This module is included to develop the basic understanding of quantitative aspect of a business function. The module includes the History, Background and principles of Revenue Management along with the concepts of basic accounting record keeping and analysis issues. Profit is maximized by controlling different expense and maximizing & optimizing Revenue Resources. By end of this module, you will get quite familiar with the terminology and their relevance to understand and practice the advanced module in 2nd Semester.

Key Benefits
After completing this course, you will be able to:
• Describe hotel revenue management and its benefits to the organization
• Discuss the strategic levers of hotel revenue management and how they can be manipulated to increase revenue
• Describe hotel revenue management in terms of its component parts and critical considerations
• Recommend non-traditional ways in which revenue management techniques can be applied to increase revenue in the hospitality industry.

Why is Knowledge of Revenue Management Important for Managers – Part I

singh_anjanaAnjana Singh has over 10 years of mixed experience in the hospitality Industry and academia, with almost 7 years in academics and 3 years in hotel operations. She has earlier held various operations and decision making positions with some of the major players of the Hospitality Industry – Taj Groups of Hotels, Hyatt Regency and The Imperial, New Delhi, India.

She had secured All India First Position in Annual examination for M.Sc. Hospitality Administration and was awarded Gold Medal, Certificate of Excellence from Ministry of Tourism.

Her Current Teaching assignments are Revenue Management, Human Resources, Intercultural Management in Hospitality, E-commerce, Career Planning, Environmental Management in Hospitality Industry, Developing Management Capabilities and Hospitality Operations. Read more

 

 

Why is Knowledge of Revenue Management Important for Managers – Part I

Taking a look at Revenue Management through a six-part article which discusses why the subject is important for managers and gives an overview of the curriculum of Vedatya’s Revenue Management Course.

Hospitality managers are charged with making strategic and proactive decisions to increase occupancy rates and total revenue for their properties. Applying a systematic process to such decision-making can increase their success. This course certificate series in hotel revenue management, developed by hotel management faculty at Vedatya Institute, provides a holistic view of the application of revenue management concepts and practices to the hospitality industry.

Vedatya has been a leader in research as well as academic discourse in the area of revenue and profit management for over a decade. In fact, it continues to be one of the very few hospitality institutions in India to offer revenue management as a part of its curriculum for the undergraduate programs of study.

The above mentioned one year post graduate program in revenue management (PGPRM) is inspired by the feedback received from the industry and a growing demand for trained and educated ‘Revenue & Profit Managers’ emanating from all segments of the hospitality industry in India. Over the years many hospitality firms have deployed internal training program, to bridge this gap in demand and supply, but lack of proper education, training and academic underpinnings, has prevented them from achieving the desired outcomes. In fact, while the hospitality industry in India struggles to put in place the trained manpower to ensure that their perishable product guestroom, restaurant cover and other facilities are sold to generate maximum profits. The sector in the developed world is moving in a direction where every employee is expected to act as a revenue and profit driver.

This specialized program is customized for those intending to work in the sector and aspiring to boost their career in a new direction by moving into the domain of Revenue Management. The curriculum delivery pedagogy will ensure that sound conceptual clarity drawn from theoretical underpinnings forms the base on which candidates learn and develop their understanding of the subject area. An overall application focus of the program delivery will ensure employability of successful candidates.

The program is also offered in a blended learning mode specifically designed for working professionals. The participants enjoy the classroom learning experience while retaining their jobs. This approach combines face-to-face instructions with online learning wherein participants are required to attend classes once a week on campus and rest of the teaching is delivered on digital platform. The incorporation of face-to-face and online teaching into one integrated instructional approach is a major contributor to student satisfaction and strength of this mode of learning.
The program promises to offer skills and knowledge required to pursue a career in revenue management in hospitality sector.

The courses in this series focus on several high-impact drivers for maximizing revenue: forecasting and availability controls, pricing and distribution channel management, overbooking and group management, and non-traditional revenue management applications. Each course explores a topic in depth, with particular emphasis on the role of strategy in effective revenue management and the practical application of tools and techniques in the hospitality setting.

Who Should Take the Revenue Management Course
This course is designed for hospitality managers and professionals of hospitality industry interested in pursuing Revenue Management as career pathway.

Why is Knowledge of Revenue Management Important for Managers – Part II

singh_anjanaAnjana Singh has over 10 years of mixed experience in the hospitality Industry and academia, with almost 7 years in academics and 3 years in hotel operations. She has earlier held various operations and decision making positions with some of the major players of the Hospitality Industry – Taj Groups of Hotels, Hyatt Regency and The Imperial, New Delhi, India.

She had secured All India First Position in Annual examination for M.Sc. Hospitality Administration and was awarded Gold Medal, Certificate of Excellence from Ministry of Tourism.

Her Current Teaching assignments are Revenue Management, Human Resources, Intercultural Management in Hospitality, E-commerce, Career Planning, Environmental Management in Hospitality Industry, Developing Management Capabilities and Hospitality Operations. Read more

 

 

Emerging Revenue Management Practices and its Challenges: Indian Luxury Hotelier’s

Revenue Management has been one of the contributors towards business profitability and its wide adoption by most service organizations especially hotels evidence its success and strong future. There has been little research in the Indian context to probe rather lethargic absorption of Revenue Management practices in India due to around its acceptance from customers. The purpose of this research was to explore the existing revenue management practices, emerging opportunities and the challenges in the luxury segment from hotel operator’s perspective.

A qualitative approach was adopted for the investigation through personal in-depth interviews with Revenue managers and General Managers (in absence of Revenue Manager) of five star luxury hotels. This study aimed to explore the revenue management practices and the challenges faced by Indian Revenue Managers of five star luxury categories.

This research helped in identifying the level of achievement of five star luxury hotels in applying Revenue Management practices and also thrown light on the knowledge and awareness of Revenue and General Managers. This study also uncovered the challenges faced by Indian Hospitality Managers while implementing Revenue Management in five star hotels of India. The practical implication of this study was to suggest strategies that Indian Hotel Managers can adopt to overcome challenges and implement revenue Management effectively in other parts of the hotel and make Revenue Management as “Responsible Revenue Management”.

Paper Reference:

Singh, Anjana and Munjal, Sandeep (2013) “Emerging revenue management practices and its challenges: Indian luxury hotelier’s” perspective proceedings of the International conference on Global Competitiveness and Corporate Governance Imperatives in Emerging Economies, organized by Ansal University (School of Management studies) on February 15-16, 2013

About the Authors

Anjana Singh has over 10 years of mixed experience in the hospitality Industry and academia, with almost 7 years in academics and 3 years in hotel operations. She has earlier held various operations and decision making positions with some of the major players of the Hospitality Industry – Taj Groups of Hotels, Hyatt Regency and The Imperial, New Delhi, India.

Her Current Teaching assignments are Revenue Management, Human Resources, Intercultural Management in Hospitality, E-commerce, Career Planning, Environmental Management in Hospitality Industry, Developing Management Capabilities and Hospitality Operations.

Professor Sandeep Munjal brings in a diverse experience of over 20 years in both industry and academia. During his early career he worked in management positions in the hospitality and retail sectors both in India and internationally. Taj Group of Hotels, Aramark Corporation (USA) and Compass Group are some of the prominent companies he has worked for at various management positions. In academics his strengths lie in the domain of ‘Strategic Management’, ‘Operations Management’ and ‘Sustainable Tourism ‘. He is an active researcher who has published widely in international and domestic journals of repute in the areas aligned with his teaching interests. His has also presented papers at numerous national and international conferences.

About Vedatya

Vedatya Institute (Formerly known as IIMT) is an initiative of IIT & the Wharton School alums who wish to replicate their own quality educational experience for the benefit of students in India. It was established with the active support of corporations such as – The Carlson Group – USA and the Edwardian Group, UK. The institute was established in the year 2000 as a higher learning institution in India offering internationally recognised undergraduate and postgraduate programmes of study in the professional areas of hospitality and business management. The institute’s campus, located on Gurgaon – Sohna road, is fully integrated with academic, recreational and residential facilities for students.

About Vedatya

Vedatya Institute is an initiative of IIT & the Wharton School alums who wish to replicate their own quality educational experience for the benefit of students in India. It was established with the active support of corporations such as – The Carlson Group – USA and the Edwardian Group, UK.

The name Vedatya reflects institute’s core values of research driven faculty, world class curriculum, international placements and student orientation. “Ved” in Hindi means knowlege and “Aditya” means Sun. Vedatya therefore is a coined term that means “source of knowledge”.

The institute was established in the year 2000 as a higher learning institution in India offering internationally recognised undergraduate and postgraduate programmes of study in the professional areas of hospitality and business management. The institute’s campus, located on Gurgaon – Sohna road, is fully integrated with academic, recreational and residential facilities for students.

Vedatya has an academic partnership with InterContinental Hotels Group (IHG) in the form of an IHG Academy. Vedatya is also the first institute in India to have an internationally branded on-campus training hotel, Holiday Inn.

The Vedatya Institute is funded by the Umak Group that has business interests in India’s Hotel, Restaurant, Education and Real Estate Industry.