HOTEL MANAGEMENT OF UNIVERSITAS DIAN NUSWANTORO REVENUE MANAGEMENT MEETING 3 HOTEL MANAGEMENT OF UNIVERSITAS DIAN NUSWANTORO

REVENUE MANAGEMENT Part 1. What is Revenue Management The Hotel Industry nowadays 3. Customers nowadays 4. Conclusion Even though revenue management Is a broad topic the focus of the discussion will be price optimization. Part 2. REVPAR

Pricing and Revenue Management What and Why?

Early Idea: Pricing (Airline) Some days flights were far from full (terutama low season) Protect seats sold at normal prices (lihat salah satu the best low cost airline) Set aside some seats to sell cheaper (free seat or travel fair) Find a way to keep normal trips from buying cheaper seats - Require early purchase (14 days ahead) (discount up to 20 %)

62% Load Factor with 16% Space The Revenue management part of this is to create separate limits for the discount (red) seats sold. Without limits, the discounts would buy all the space set aside for the blue high-fare demand.

Revenue Management is Born Surplus seats can be sold at a discount ( only limited seat dan merupakan kursi sisa) Discount purchases tend to be earlier than full-fare purchases (lebih awal : Free Seat, Travel fair, pembelian jauh jauh hari) Discount sales must be limited to protect full-fare space Limit to estimated surplus seat count ( 5 until 10 seat only) This is a second limit, beyond the limit on total seats (total 192 seat) Revenue Management sets discount limits (tidak semuanya di diskon, bisa rugi atau bangkrut)

Early Computerization Computers used to forecast full-fare demand (semua perhitungan by system atau computer) Mathematical rules used to set buffers and surplus seat count Difficult or nearly full flights separated out for people to monitor and manage (jangan sampai double booking atau double seat) Pricing and Revenue Management became departments at airline.

Revenue Management Grows Diskon lebih besar digunakan untuk mengisi penerbangan yang sangat kosong. Operator tanpa sistem Revenue Management dapat menimbulkan kerugian kompetitif Sistem komputer menjadi semakin rumit Perusahaan luar menjual sistem ke maskapai penerbangan

The Why behind Different Prices Biaya pesawat yang lebih besar lebih sedikit per kursi daripada yang lebih kecil (contoh Airbus A380 bisa 853 seat, bombardier CRJ1000 hanya 70 seat Permintaan Nilai-Tinggi Dibayar untuk Kursi Berkapasitas Tinggi Nilai-Nilai Lebih Rendah membayar biaya tambahan untuk kursi tambahan Kedua Kelompok Permintaan mendapat manfaat dari pembagian biaya tetap

Small Airplanes have High Cost per Seat This is a realistic picture of the average cost per seat trip as it changes depending on airplane size. Larger airplanes are cheaper. The idea here is that an airline could, at least in the sense of long-term planning to set up their system, use any airplane size it though worked best.