Revenue Management (RM) is about a different way of managing business based on a very old idea. Every seller in human history has faced RM-type decisions. What price to ask? Which offers to accept? When to offer a lower price? And when to simply “pack up one’s tent” as it were and try selling at a later point in time, or in a different market?

Value adding is a key driver in today‘s hospitality and restaurant business. Besides satisfying customers and having happy employees, a hotel manager must add value to the bottom line of its operation. The owners expect a return on investment and a certain level of profitability and this can only be achieved if managers know how to monitor their operations and control costs. Managers must be experts and acrobats in taking financial decisions, very often with only limited information and resources, and still be able to forecast the consequences of their choices. Mastering figures will give managers the competitive advantage and will put them in a position to influence the bottom line of their operations.

In these turbulent times, political, economic and social, companies must be drivers in change within their competitive business environment.  On the assumption that it is better to lead than follow, strategy can be viewed as the ability of leaders to see their future ahead of others to create products and services, which will take advantage of this foresight.  With these products and services identified, the strategist must also insist upon the proper allocation of resources to them as they are elements of a firm's competitive arsenal.

The other indispensable element in this equation for success is the ability to add value for all the stakeholders of the firm: for the investors, a return which satisfies their needs for growth in wealth over time and compensation for the risk associated with the investment; for the customers, a recognition that in a knowledge-based global economy where instant access to information have made products and services transparent, it is they who now control the purchase decision; and finally, for the employees, who seek value in the work done and the way they are compensated.

Through a series of lecture-discussions, group work and daily individual assignments, participants will apply the above concepts to their properties.  The Module culminates in a final-day presentation of strategy plans of each participant's individual hotel or chain.

Do you want to increase your expertise in applied beverage strategies?  Join this Module that aims at providing participants with the necessary tools to improve beverage purchasing practices for a higher return on investment.  

What is your hospitality business worth? Do you know how to go about estimating the value of your business? 

Ask yourself what is the basic formula of profit.

The answer is simple; Revenue minus costs = Profit.

There is no other magic formula in whatever business you could be.

Meaning to increase profit, you can either play on revenue or play on costs.

Play directly on costs or if you prefer cut directly costs is much easier and faster.

However, at long run is it beneficial?

What drives the competitive advantage of any business, in particular in the service industry? You may know it, but you still need to acknowledge it through compelling evidence: People. It is people who are at the core of the service-profit value chain. In the context of a war for talent, people management is a critical key to a company’s profit. 

The Module will touch on how to make better use of the various channels of distribution so as to increase the revenue and profit potential from such sources.  We will use real world case studies to look at how the marketing has evolved over the years and how hotel companies have responded.  We will relate strategic marketing to today’s science of pricing (i.e. synchronicity of rates), revenue management (seamless availability of inventory), available opportunities to target and sell to individuals rather than masses, and the connection with the objectives of CRM (Customer Relationship Management).  We will stimulate an environment of open discussion (interactive) where traditional views and paradigms can be challenged and where optimization of distribution is the name of the game.