Revenue management Assignment Example | Topics and Well Written Essays - 500 words - 1

Revenue management - Assignment Example Therefore, by 2020, it is projected that there will be a shift in landscape in RM. To ensure the success of RM strategies, the revenue managers in the hospitality industry need to be convinced of the ability to deliver return on investment and made aware of the resources needed to maximize potential. The hotels should also make sure that their organizational structure supports the RM policy. Besides, there needs to be a cultural understanding which major department like sales, marketing, and revenue work together to share information crucial to revenue management success. Furthermore, it is forecasted that the application of RM will become more strategic and will be supported by the increasingly sophisticated technology. This is because it includes more of income streams of the hotel. In this regard, by 2020, revenue management is likely to be applied to function-space and also incorporate revenue streams including restaurants and spas, as well as golf courses. Consequently, the RM function will become more central to operations of the hotel, and will quite to be expected be a separate department under supervision of the general manager. The core, strategic role of revenue management will need upgraded measurement techniques (Hayes and Miller 55-68). This implies that other than revenue per available room (RevPAR), the future RM might have a profit-oriented metric, for instance, total revenue per available room or the gross operating profit per available room (GOPPAR). As for the future revenue managers, they will require analytical, leadership, and communication skills. A formal RM education as well as negotiation skills would also be helpful. According to (Nessler 86), the managers would also use tools or internal compression which will aid them establish the unconstrained demand and close out close non-profitable channels. Since RM will move from tactical to a more strategic role, analytics along with supporting technology will play a crucial role in