Total Hotel Revenue Management, implementing revenue management in hotel function spaces
Allos-Reid, Linn (2023)
Allos-Reid, Linn
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060521560
https://urn.fi/URN:NBN:fi:amk-2023060521560
Tiivistelmä
Hotels have optimized the revenue from hotel rooms for nearly four decades with the use of revenue management (RM). The interest for total revenue management (TRM) emerged over a decade ago with the idea that RM could be implemented to all revenue streams of a hotel. Function spaces were one of the main departments that professionals considered as a first step towards TRM. The literature on function space RM and TRM is still limited as well as the technology to support the implementation of RM for other departments. A hospitality organization in the Finnish market has the ambition to implement RM to their function spaces with the long-term goal of TRM. The aim of the research was to understand how revenue is currently optimized in function spaces and where to start when implementing revenue management in a hotels function space. Semi-structured interviews with function space management and RM professionals were conducted. The interviews discussed the current processes in the organization, RM knowledge, and the possible aspirations, opportunities, and key factors concerning RM implementation. Answers were analyzed using an abductive method, resulting in a comprehensive understanding of current challenges related to access to data and limited systems, but a high interest in optimizing function spaces with RM. Dynamic pricing based on demand, leading with; and making strategic decisions based on data were the main benefits mentioned. Recommendations based on results and reviewed literature include aligning operations within the organization in Finland and initiating the change by setting up their function space data in Benchmarking Alliance and starting to collect data to the system. Through this each property will receive deeper knowledge of their function space sales and where there is room for improvement either in capacity or price.