THE CONCEPT OF REVENUE MANAGEMENT IN THE HOTEL BUSINESS
Abstract
The article is devoted to the topical issue of defining the concept of revenue management, its place in the hotel business, the prospects of application and the likely effect of flexible pricing during the pandemic crisis. The origin of the term is analyzed, it is determined from which branch the term came to the hotel business. The term "revenue management" was first used as a term in the works of leading airline professionals. British Airlines was the first to use "discount prices" for flights of its aircraft with the Early Bird tariff plan, ie early booking. American Airlines has gone even further by using price discrimination (selling the same product at different prices at different times) and forecasting consumer demand. It was American Airlines President Robert Crandall who introduced the term "yield management" as a way to maximize revenue and co-founded a loyalty program for frequent flyers. However, the term "yieldt" for hotels was not entirely appropriate, so it was replaced by "revenue". It is given which international hotel chains were the first to try to apply revenue management. Marriott was the first to adapt airline profitability management strategies to the hotel business and saw big profits. The next step was the differentiation and segmentation of guests in the hotel chain InterContinental Hotels Group. Defines the requirements for revenue managers and what responsibilities they should be able to perform. The levels of the revenue management system are given. The directions of hotel activity that form the essence of revenue management (revenue management) are determined. It is determined that most hotels belonging to international networks actively use revenue management tools. In Ukraine, this practice began to develop in the last 10 years and under the pressure of the same international networks that began to appear in our country only in 2005. However, even today this area of activity is still underestimated. In many hotels, revenue managers combine their activities with booking or sales, and are subordinate to their managers, who limit their capabilities.
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