Revenue Management and Dynamic Pricing Practices at the Gateway Hotel, Chennai
Revenue management is extensively utilized by the hotel industry to decide on room allocation and tariff. Hotel revenue management is a scientific method that also increases the profitability of the hotel business. Hotels uses revenue management to replenish inventory, to predict demand and to set the price of the product. The Revenue Management structure are also deployed by airline industries, hotel industries, electric utilities etc. The concept of "Price Multipliers" is based on concession which varies in seasonal indicated price. Nowadays, this "Price Multipliers" concept is adapted by Dynamic Pricing in the industry. The price multipliers has its impact from occupancy till arrival. In this study the authors', highlights on various room packages offered at The Gateway Hotel IT Expressway, Chennai and its effect on hotel revenue management. The proposed approach is based on utilizing "Seasonal Packages" and to maximize the revenue,the demand-price sensitivity and also taking in to account on current demand of the guest.
Keywords: Revenue Management, Dynamic Pricing, Price Multipliers
Volume: 6 | Issue: 3
Issue Date: June , 2016