Hotel Revenue Management Research Paper Example | Topics and Well Written Essays - 1000 words

Hotel Revenue counseling - Research Paper ExampleTo this effect, a quick PEST summary has been done below. PEST compend According to Competitive Intelligence (2011), Political factors include parts such as employment laws, environmental regulations, tax policy, trade restrictions and tariffs and political constancy. This means that political factors have to do with factors that are influenced by government. In this case study, tax charged on rooms, trade restrictions and travel policies would be factored in the political analysis whereby a relatively low tax system and free flow of people would enhance the business enterprise of hotels. Economic factors for the tax way are exceptionally master(prenominal) for international trade and patronage. This is because according to selling Teacher Limited (2000), economic factors cover issues such as Interest rates, the level of inflation employ level per capita and long-term prospects for the economy Gross Domestic Product (GDP) per capita, which are all very important in determining internal revenue management models. ... This point is buttressed further by the loyal MBA Network that mentions issues under social factors to include health consciousness, population growth rate, age distribution, career attitudes and focus on safety. Technological factors will eventually play a central part of the revenue management in the sense that it is going to be the single most important interactive medium by which potential customers are going to be contacted. Customers are also expected to be abreast with innovations and programs of the hotel by accessing data and information on the hotel through the use of the internet. Most commonly, it is expected that online reservations and group bookings will be made via the internet. The Net MBA (2011) mentions other forms of scientific issues such as Recent technological developments, Technologys impact on product offering, Impact on cost structure, Impact on value chain struct ure, Rate of technological diffusion. Revenue Management Model In todays competitive economic era, revenue management has been identified as an extremely important means for hotels to make up for their apportioned resources and income. Revenue xls (2007) has it that revenue management models are intended to optimize the pricing of hotel rooms, airline seats, and other perishable commodities for a precondition duration by taking into account demand variability over time and capacity constraints. The major model to be adopted would be the stochastic model, which was first used on the airline patience by De Boer et al. (2002) for the airline industry. A qualitative rather than a quantitative form of the model shall nonetheless be used. Under the model, the following areas will be considered. The