The hotel and hospitality industries have recently fostered a number of changes in management strategies and innovative business practices. Revenue management, pricing strategies like price optimisation and price discrimination,…
Let us write or edit the essay on your topic
"How does pricing strategy and price optimisation become strong elements in revenue management to the independent boutique hotels in London"
with a personal 20% discount.
Download file to see previous pages...
This piece of research paper explains how does pricing strategies and price optimisation become strong elements of revenue management in hotel industry, especially in independent boutique hotels in London. This paper details various pricing strategies like price optimisation, price discrimination and describe how these can help hotels to increase revenues as well as create customer focus.
Revenue management is a process of managing capacity profitability that a hotel is involved in selling right inventory to the right customers at right time and for right price. One of its basic elements in allocating undifferentiated units of capacity to the available demand to generate maximum profit (Ingold, Yeoman and McMahon-Beattie, 2000, p. 3). Past and current levels of booking records are used to help the firm forecast demand and to maximize the profits as part of revenue management (Avinal, 2004, p. 52).
Tranter, Hill and Parker (2009) emphasized that the hotel industries should develop a customer-centric approach to pricing. The pricing strategies that hotel industries adopt should be basically centered upon the perceptions and buying behaviour of the customers rather than solely focusing upon the products, service and profit margins (p. 117). In today’s highly competitive marketing environment, hotel industries have realized the importance of customer focus and customer centric approach along with its pricing strategies. Most boutique hotels perceive customer value as centre to its marketing concept and pricing strategies.
One of the very common pricing strategies used in hotel industries is demand-based pricing, in which the hotels research the quantities of the products or services that would be purchased at different prices. This pricing method helps hotels to ensure that amounts produced can almost be sold out, but, making accurate demand estimation
...Download file to see next pagesRead More
Cite this document
(“How does pricing strategy and price optimisation become strong Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1569945-how-does-pricing-strategy-and-price-optimisation-become-strong-elements-in-revenue-management-to-the-independent-boutique-hotels-in-london
(How Does Pricing Strategy and Price Optimisation Become Strong Essay)
“How Does Pricing Strategy and Price Optimisation Become Strong Essay”, n.d. https://studentshare.org/miscellaneous/1569945-how-does-pricing-strategy-and-price-optimisation-become-strong-elements-in-revenue-management-to-the-independent-boutique-hotels-in-london.
Nonetheless, it states hotels vary in levels of operation; thus, some hotels are in positions of boosting their revenue within the industry as per their available number of rooms. The hotels that can boost the revenue are expected to provide better pricing as they aim at optimization of some of the untapped opportunities, as well as maximizing bundling and customer loyalty schemes.
The purpose of a boutique hotel can vary depending on the owner, with many offering state-of-the-art technology and others shying away from WiFi access and focusing on comfort and intimacy (Lim & Endean, 2009). The purpose of this literature review is to explore whether boutique hotels provide the consumer a new choice within the accommodation market, exploring how these new options may appeal to a variety of different individuals.
While for others, it is a chance to get away and indulge in a different atmosphere that is thrillingly different and fresh. At one point or another, the majority of us has stayed or had to stay in a hotel and choosing the right one for us means the difference of having a good time or a bad one.
Only the freshest products make it to our kitchen- we do not believe in selling anything below our premium standards. Question 2 Organizations usually have a choice between cost-centric, demand-centric and competition oriented pricing strategy (Levy & Weitz, 2012).
Given current economic conditions, companies are under increasing pressure to sustain profitable operations. Traditional approaches to improving profitability managing costs are necessary, but are increasingly limited. An alternative approach is to address revenue growth as an additional lever to improving profitability.
They make necessary changes in the interior as well as exterior of the restaurant. Revenue management directs the managers to give proper guidance to the staff regarding their behavior and performance to serve the customer. This article will further explain about menu engineering.
Its scale of operations will rank at 33rd place if Wal-Mart is treated as an individual economy, surpassing over 100 countries in the world (“Wal-Mart” 2). The company boasts of impressive profit figures of US$ 10.3 billion for year 2004 and reports claim that
The purpose of this study is to try and find solutions to help the hotel industry deal with and survive the recession. It is of special importance to me as my career and future is linked to the performance of this industry. The purpose of this dissertation is to show how hotels of different types are managing despite the recession, and what steps can be taken by hotels of different sizes and with different clients to increase their revenues and cut losses.
However, the persistent quest started after Scotland joined the Union in 1710 together with England, and Wales to form the Great Britain as was envisaged in the Act of union (Pruitt, 2014). Conversely, in 1997,
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic How does pricing strategy and price optimisation become strong elements in revenue management to the independent boutique hotels in London for FREE!