Revenue Management in the Hospitality Industry

Revenue management is the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of revenue management is selling the right product to the right customer at the right time for the right price and with the right pack. The essence of this discipline is in understanding customers’ perception of product value and accurately aligning product prices, placement and availability with each customer segment. In the hospitality industry, the focus on revenue management is a key management challenge for both the individual hotel and the whole company. This dissertation aimed identification of the key determinants of hotel profitability to allow revenue managers to improve revenue management, or to create a strategy for revenue management from scratch. The methodology of the thesis is to build a regression model for the hotel industry and a separate hotel to understand the correlation of a large range of factors and profitability of the hotel. Also in the thesis calculated the main financial indicators of the hotel, necessary to create the correct income management policy. Based on the obtained data, conclusions about the priority of factors affecting the profitability of the hotel, necessary for management decisions. Key words: revenue management, revenue, hospitality industry, determinant, ratio.