Revenue Management in Hospitality Industry at Maturity Stage

The importance of Revenue Management as analytical tool has not been fully elaborated in Russian managerial studies. From the practical perspective, the majority of hotels in Russia implement Revenue Management methods into daily procedures, based on international experience. Nevertheless, as this field is relatively new, the Revenue Management system require more in-depth analysis, considering the Russian business framework and market environment. To complement the existing findings, the primary goal of this paper is the developing an effective Revenue Management techniques and search for sales drivers for the hotels at maturity stage. The investigation was conducted in form of a case study of full-service business 4-star hotel located in Moscow (Hotel N). The research paper consists of three chapters. Chapter 1 presents general concepts regarding the Revenue Management, its core metrics and its uprising in science and practice. Chapter 2 provides an insight into key elements of Revenue Management system described on historical data of the research object. In the context of the predicted revenue level and the life cycle stage, the discussion of the research on the new sources of income for the Hotel N is proposed in Chapter 3. Research findings seem to be consistent with the formulated hypothesizes: Hotel N is considered to be in the maturity stage having opportunities for growth in both individual and group segments. Analysis of competitive environment lends support to the existence of unserved market of private weekend events, where recommendations are given. The following investigation of 100 most profitable guests shows that Hotel N is able to increase its direct sales and strengthen the loyalty program. To conclude, the employment of the stated techniques may trigger not only the revenue growth in the short run, but also exclude other inefficiencies that overall could give an input into share of loyal clients and the value of target metrics.