Revenue Management for Small an Independent Hotel: An Action Plan for Hotel
Huynh, Nhi (2018)
Huynh, Nhi
Laurea-ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018062014151
https://urn.fi/URN:NBN:fi:amk-2018062014151
Tiivistelmä
The goal of this project-based thesis is to create an action plan that can help P Hotel- the case hotel, to implement revenue management by utilizing suitable strategies and tactics. The aim of the project to is to help the hotel staff familiar themselves with revenue management concept and the hotel’s bottom-line will be improved upon the action plan is successfully implemented. As the case hotel is a small and independent hotel located in Sóc Trăng province and considering the the-sis project’s development direction, the theory framework includes three theory topics: Sóc Trăng province’s tourism situation analysis, position of SMEs hotel sector in Sóc Trăng province and revenue management fundamentals. The theories presented in this thesis paper are based on literature and various online resources.
Two qualitative research methods were employed to build this project which are in depth interview and participation observation. To obtain an overview on the case hotel’s customer groups and its sales strategies and practices, two in depth interviews were conducted. Hence, to gain different perspectives and enhance the reliably of the data, the author interviewed both the manager and the receptionist. Participation observation research method was used to obtain insights into case hotel’s customer groups and how the sales practices take place in real time. The observation lasted for two months and the following data was studied: capacity for sale, rates offered, in-time and historical data of guest records and front desk sales activities. The recorded data of in depth interviews and participation were used to develop case hotel’s SWOT analysis which is the foundation for action plan development. Because based on case hotel SWOT analysis, the author sets strategic objectives for the action plan and determines which revenue management strategies and tactics are applicable for case hotel.
As the project outcome, the author built a one-year action plan for P hotel. The action plan includes five stages, each stage has its own strategic objective. The first strategic objective is to find and gain profound understanding of profitable customer groups. The second objective is determining price level and rate structures according to demand patterns. The third objective is to prevent loss of potential revenue and customer segments. The next objective is to control and shift demand. Enhance the efficiency of using distribution channels is the final objective. By actively participating in the planning process of the action plan, the hotel manager and front desk workers had enhanced their knowledge on revenue management and improve their research skills.
In addition to creation of action plan, to help the case hotel to have a good start, the author helped the case hotel to implement the first stage of the action plan and achieved the first strategic objective. Service design was applied as development tool in the implementation of the first stage. Hence, customer segmentation and customer journey mapping methods were utilized. By segmenting its customer groups, case hotel realized its profitable customer segments, their characteristics and their referred channels for advertising approaching. Customer journey maps redraw the cus-tomers’ experience with the hotel via customers’ eyes, this helped P hotel to discover its new strengths, weaknesses and opportunities for improvement.
Two qualitative research methods were employed to build this project which are in depth interview and participation observation. To obtain an overview on the case hotel’s customer groups and its sales strategies and practices, two in depth interviews were conducted. Hence, to gain different perspectives and enhance the reliably of the data, the author interviewed both the manager and the receptionist. Participation observation research method was used to obtain insights into case hotel’s customer groups and how the sales practices take place in real time. The observation lasted for two months and the following data was studied: capacity for sale, rates offered, in-time and historical data of guest records and front desk sales activities. The recorded data of in depth interviews and participation were used to develop case hotel’s SWOT analysis which is the foundation for action plan development. Because based on case hotel SWOT analysis, the author sets strategic objectives for the action plan and determines which revenue management strategies and tactics are applicable for case hotel.
As the project outcome, the author built a one-year action plan for P hotel. The action plan includes five stages, each stage has its own strategic objective. The first strategic objective is to find and gain profound understanding of profitable customer groups. The second objective is determining price level and rate structures according to demand patterns. The third objective is to prevent loss of potential revenue and customer segments. The next objective is to control and shift demand. Enhance the efficiency of using distribution channels is the final objective. By actively participating in the planning process of the action plan, the hotel manager and front desk workers had enhanced their knowledge on revenue management and improve their research skills.
In addition to creation of action plan, to help the case hotel to have a good start, the author helped the case hotel to implement the first stage of the action plan and achieved the first strategic objective. Service design was applied as development tool in the implementation of the first stage. Hence, customer segmentation and customer journey mapping methods were utilized. By segmenting its customer groups, case hotel realized its profitable customer segments, their characteristics and their referred channels for advertising approaching. Customer journey maps redraw the cus-tomers’ experience with the hotel via customers’ eyes, this helped P hotel to discover its new strengths, weaknesses and opportunities for improvement.