Abstract
Establishing clear visions of revenue optimization and distribution strategies based on a deep understanding of the uniqueness of hotel rooms business and selecting appropriate combinations of strategies and investments as well as establishment of clear policies and procedures on revenue, distribution, and internet marketing that are closely interrelated will be a key driver of successful implementations of revenue optimization.
Applying revenue optimization theory and understanding of its logics are critically important to maintain a healthy business. To identify the appropriate performance measurement and pricing strategies, the key performance index and pricing methods historically used in the industry are evaluated and reviewed with considerations of price elasticity of demand and the unique characteristics of the industry such as perishability and inflexibility of inventory, consumer behaviors by market segment, and timing of payments with the testimonies by reservation, revenue, distribution, and system managers.
The efforts on driving digital traffic to hotels' own websites are also evaluated in order to identify its essential value and contribution towards the implementation of revenue optimization. In conclusion, securing the independency of pricing based on appropriate value delivery, and relationship management with both existing and potential customers to generate high loyalty guests to hotel brands will lead to the successful application of revenue optimization.
