BHMT401A – Revenue Management I
Hotels, restaurants and event spaces are heavily vested in revenue management. An understanding of how rate and occupancy within market segments affect the bottom line will be examined. Distribution channels and leading forecasting plus revenue management programs will be reviewed for effectiveness in the decision-making by the revenue manager. Comprehensive, integrated and monitored controls are key to the financial and operational success of most hospitality operations. Monitoring of potential costs, managing spillage/spoilage, inventory rotation, dormant asset management and disposal, wine cellar ROI analysis, futures contracts, CVP analysis, the feasibility of departmental promotions and monitoring accountability will be learned.
This is a simulation-based course that will integrate all Revenue Centres, for example, spas, parking, communications, laundry and valet. Students will analyze and gain a full understanding of how these revenue centres can add to the bottom line, at little or no cost, through analysis of margins, commissions and other contribution structures.
This course enables students to appraise the consequences of marketing decisions (notably pricing and distribution) on value creation for a hospitality company. They will apply revenue management principles by analyzing the associated systems, methods, and applications for effective hotel management. The participants will use revenue optimization techniques which are suitable for decision-making in hotel or restaurant chains. Using revenue management software, they will learn to integrate revenue management analysis and decisions into hotel management. Upon successful completion of this unit, students will have acquired the necessary competencies to evaluate the financial impact of marketing decisions (particularly pricing and distribution) and to model, execute, and manage revenue optimization processes for hotels and restaurants at the business unit level. Using simulation decision-making, problem-solving, and team-building skills will broaden the understanding of hotel and restaurant metrics.