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Revenue Management and Reservation Systems

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Presentation on theme: "Revenue Management and Reservation Systems"— Presentation transcript:

1 Revenue Management and Reservation Systems

2 Burj al Arab

3 Objectives Outline the different types of reservations and describe reservation inquiries and their distribution channels. Gain an understanding revenue management and how forecasting is critical to the success of an operation.

4 What is a reservation? Advance booking to reserve space for a designated time. Restaurants Hotels Airline Cruise Ships

5 Reservation Sales Planning Process
Committing rooms for the future Months or Years in Advance Foundation of Revenue Management Guest Mix Group Guest Transient Guest Group Allocation Rooms allocated for group use

6 Group Reservations Group Block Booked Cut-Off Date
Rooms set aside for a group Booked Blocked rooms that are reserved Cut-Off Date Unreserved rooms released at predetermined date

7 Hotel Statistics Occupancy % Average Daily Rate

8 Forecasting What is Forecasting?
An approach to determine what the future holds. 8

9 Forecasting Room Availability
Why Forecast? Foundation for making Pricing Decisions Departmental Scheduling 9

10 Forecasting Data Forecasting relies on historical data
Takes the guesswork out of forecasting 10

11 Revenue Management Techniques used to determine whether prices should be raised or lowered. Determines whether a reservation should be accepted or rejected. Supply and Demand Raise rates when demand exceeds supply Lower rates when supply exceeds demand

12 Elements of Revenue Management
Group Room Sales Transient Room Sales Food & Beverage Activity Local and Area Wide conventions Special Events

13 High Demand Tactics Close or restrict discounts
Apply minimum length of stay restrictions carefully Reduce group room allocations Raise rates to be consistent with competitors

14 Low Demand Tactics Sell value and benefits Offer packages
Keep discount categories open Encourage upgrades Offer stay-sensitive price incentives Remove stay restrictions Involve your staff Lower rates

15 Types Of Reservation Systems
Property-Level Reservation Systems Central Reservations Systems (CRS) Global Distribution Systems (GDS) Internet Distribution Systems (IDS)

16 Property Level Reservation Systems
Reservations module of the Property Management System (PMS). Designed for individual properties

17 Central Reservations Systems (CRS)
A reservations system in which each participating property is represented in a computer system database. Two types of CRS Affiliate Reservation System Chain Properties Non-Affiliate Reservation System Independent Properties

18 Sheraton Airport Starwood CRS Westin Providence Westin Waltham Sheraton Boston

19 CRS Functions Services are provided by the Central Reservations Office (CRO). Rates are provided by the participating properties. Responsibility and control of the CRS lies with managers at the property level

20 Global Distribution Systems (GDS)
Developed by the Airlines Links together: Hotel CRS Airline Reservation Systems Car Rental Reservation Systems Travel Agency Companies

21 GDS Systems Sabre Galileo United Amadeus Air France WorldSpan

22 Global Distribution System
Starwood CRS Global Distribution System GDS Marriott CRS Choice Hotels CRS

23 Internet Distribution Systems
Electronic Reservations Consumer Orientated Provides a greater distribution of inventory. Examples:

24 Burj al Arab

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