Revenue management team and case study on revenue management in restaurants and bars.

1. SUBMITTED BY-
ARUSHI CHADHA
MSC 1STYEAR
149559021

2.  REVENUE MANAGEMENT TEAM
 COMPOSITION OF REVENUE
MANAGEMENT TEAM
 ROLE OF REVENUE MANAGEMENT
TEAM
 REVENUE MANAGEMENT IN
RESTAURANTS AND BARS

3.  Revenue management team is very a crucial point in
implementing operations of revenue management in hotel
industry.
 Revenue management’s experienced and talented teams are
dedicated to helping properties achieve superior market share and
profitability
 MAKING DECISIONS, MANAGING REVENUE.

5.  It usually includes representatives from key areas
of the property.
General manager,
Revenue manager,
Sales manager,
Catering manager,
Reservation manager.
Front office manager,
Food & beverage
manager
Other managers,
Hotel controller

6.  It acts as satellite agents for implementing
revenue management.
 Helps in determining whether past forecast were
accurate and alert revenue manager to
signification patterns in group or transient
behavior.
 Develops plans for interdepartmental
communication.
 Some of major tasks of RvMT are stated further-:

7. SETTING REVENUE MANAGEMENT
GOALS AND
OBJECTIVES
ORGANISING THE
REVENUE MANAGEMENT
FUCTION

8.  Daily meetings
• Review previous day or
weekend occupancy, room
revenue, ADR, & yield
occupancy.
• Reviews the booking pace for near-term business.
• Reviews old business
• Presents new business
• Discuss any last minute adjustments
• Determines information needs to be circulated

9. At weekly meetings
 Review forecasts for 30,60, 90 & 120 days
 Discuss stratigies.
At monthly meetings
 Determine efforts to boost sales, additional
marketing.
 Review ongoing annual forecast.
 Track yield statistics.
 Future period calculations
 Discounts may/ may not opned
 Review each sales contract
 Sales target figure for month

10. Reveue Management
Maximizing
Revenue
Discount
Policy Review
Process
Improvement
Customer Success

11. FORECAST
OPTIMIZE
CONTOL
MONITOR

13.  RESTAURANT REVENUE
MANAGEMENT(RRM)
Selling right seat to the right customer at the
right price and for right
duration.
 Goal of RRM is to
maximize revenue per
available seat hour (Rev PASH)

14. Role of techniques used in revenue
management
• Promotional strategy
• Pricing strategy
• Marketing techniques
Market segmentation in revenue generation
 How does market segmentation leads to profit
maximization
 Factors to attract market segmentation

15.  If the price established by management must
strike a very fine balance between the
consumers need for value and the owner’s
need for maximum return on investment,
prices must determined to induce patronage.
said by:
Robert D.Reid
in Feb 2009

16.  Bars have a lot of competition of their
customers, from other drinking establishments
to restaurants, getting people through your
doors and onto your seats and stools isn’t the
only issue, either; you need to ensure your
patrons continue to spend money once they
settle in.
Said by:
Filonia
on april 2013

17.  Market segmentation is an important aspect of
market pricing. An organization can’t be all
things to all people. To market its product cost
effectively, it must clearly identify its
customers and market segments they belong
to.
Said by:
Pat Levings
At June 1974

18.  Surveys has been conducted in several hotels of
Chennai.
 That are-
• Radision Blu
 Hilton hotel
 The leela palace
 The Westin
 Hyatt regency
 ITC Grand Chola
 Trident chennai
 The Raintree
 Taj Coromandel
 Le Royal Meridien

19.  What promotional strategies do you use?
Personal selling-
10%
Public relations-
80%
Advertising-10%

20.  How do you increase your volume of sales?
Increasing the food
and beverage
prices- 60%
More physical
business- 40%

21.  What are the different marketing tactics do
you use?
Increasing overall
quality- 50%
Hiring sales oriented
staff- 14%
Publicity of the
product- 28%
Discount or credit
terms- 18%

22.  What pricing stratigies do you follow?
Flexible pricing- 58%
Price building- 20%
Complementary
Pricing-10%
Guest loyality discount-
12%

23.  Does market segmentation helps you in
increment of revenue?
0
10
20
30
40
50
60
70
80
Yes- 80% No- 20%

24.  What additional efforts you do to magnetize
your market segmentations?
0 20 40 60
Free wifi- 35.8%
Special meeting seating- 7.1%
Live music band- 0%
Creating ambeince- 57.1%

25.  What up selling techniques do you focus to
improve your profits?
Cross sell more profitable
items- 50%
Suggesting seasonable
special- 10%
Offer specific item- 0%
Understanding guest
psychology- 40%

26.  How do you define your restaurant/bar in terms
of value of money?
0
50
100
Meeting
guest need-
20%
Tempting
food/drinks-
10%
Pleasant
ambience-
10%
Greater
degree of
service- 60%

27.  Selling product on a low price doesn’nt work
always, generally not in hotels.
 Market segmentation leads to major revenue
generation.
 Focusing on guest need, understanding their
psychology leads us meeting our volume of
sales.