Revenue Management in China's Hospitality Industry Using OTA

The main purpose of the graduate qualification work of the master was to develop recommendations to improve the profitability of the hotel "X" based on the use of OTA-services. To achieve the goal, the first chapter of the work described the essence of revenue management in the hotel business, described the key factors affecting the revenue of the hotel business, the study of pricing management methods to maximize room revenue, as well as reflected the role of OTA in the modern hospitality industry. The second chapter is devoted to the description of the activities and analysis of the revenue management system of Home Inn Hotel, PRC. Characteristics of the current state and trends in the development of hotel business in the PRC give reason to conclude that China today already occupies one of the world's leading positions in the hotel and tourism business, and in the coming years the United States will become one of the two largest hotel markets in the world, which, in turn, determines the rapid growth of Chinese hotels. Based on the analysis performed in the third chapter of the paper, recommendations were developed to improve the profitability of the Home Inn hotel based on the use of OTA services. To this end, in the first paragraph of the chapter the justification of the need to intensify the use of the hotel's PTA services - confirmation of the research hypotheses were made. In the process of this justification, a comparison of the amount of income and profitability of the hotel "Home Inn" before the active use of OTA, a review of statistics of the number of hotels in China and the calculation of the dynamics of assets and net assets of the hotel "Home Inn", the characteristics of the impact of the implementation of revenue management system Yield Management (YM) on room occupancy and results of the hotel. As a result, the four hypotheses were fully confirmed, which gave grounds for the development of the concept of improving the model of income management of the hotel "Home Inn" with the use of OTA-services. This concept included three main directions: improvement of the hotel website by creating a multi-lingual version of booking, including mobile booking, increasing the number of connected OTA services and introducing new rate plans into the hotel's price range. In developing the concept the basic steps are defined, a list of necessary resources is compiled, costs are calculated, projected results are identified and cost-effectiveness is established. Forecasting the results of the recommendations led to the fact that due to the implementation of the proposed concept and an increase in the number of connected OTA services, all indicators that characterize the effectiveness of the hotel will increase significantly.