Unresolved Tension: the Quandary of Revenue Management Versus Service Management – Parts 1 & 2

lma — Sun, 17 Feb 2008 10:34:35 +0000

Chris, from the International College of Management Sydney addresses the challenges of balancing revenue management and service management in a 6 Part Q & A series – in this article, he explains the revenue management strategy and addresses the issue of hotel pricing policies and their associated ethics.

1. What is your opinion on revenue Management in hospitality today?

Revenue Management is a multi-faceted strategic approach to pricing that can be very effective at promoting the bottom line. It works best for the overall sustainability of a hotel when it takes into account existing hotel standards and systems and especially when it can be flexible to loyal customers.

Do you think that all this heavy discounting and yield management really works (more retention of revenue)?

Discounting is a sometimes effective short-term strategy, but it is unsustainable because it can have long term impacts. Look at the recent closure of the Fairmont Resort, Blue Mountains , a hotel with competitive rates, as one example of a good hotel that priced itself under its market. I prefer value-add strategies for luxury products like hotels (keep the price the same but add-on indirect costs like upgrades and valet parking and shoe-shining), because I think customers equate low prices with poor quality and that has a negative brand impact, which does not sustain them.

In support of my discount-wary philosophy, the Observatory Hotel on Kent St, Sydney, has a ‘no discount’ policy that has seen it consistently able to charge high rates and generate revenues which are, by my observation, then invested in its people, these people then produce better service, which in turn adds value and can then be reflected in even higher prices… and so the virtuous cycle continues. It is a phenomenon particular to hotels and airlines and other luxury items.

Do you think that hotel pricing policies are giving fairness and satisfaction to all customers?

No, but the nature of service and hotels is that all customers are different and have different needs so this does not concern me so much. What does concern me is the opposite point of view. A lot of RM strategies rely on shifting market trends and movements that classify all people arriving at a certain time as one particular group. Therefore, I am no longer Mr Smith, regular customer who always gets a suite with a beautiful view for a consistent rate, but now I am Mr Smith arriving on a busy Thursday night and so now I must pay more or less than before because that’s economics. That is economics, but not service. This is not honouring his loyalty nor rewarding it.

What is your opinion on all this cost cutting which is going on at the moment? Do you thing that employees are working in very “tough” environment, understaffed, stressed….?

Cost Cutting is vital but managers need to see themselves and their departments as ‘profit centres’ and emphasise revenue generation as well, as this will empower staff to see themselves as part of the success of the business= more motivation= better service. Furthermore, the old adage, you need to spend money to make money, is as apt as ever.

Stay tuned for parts 3-4 from the International College of Management Sydney

School Management Software

lma — Sun, 26 Aug 2007 00:04:50 +0000

About Com Software

COM School Management Software is the world’s most comprehensive software ever designed for managing schools and educational institutions. It is the leader in the bandwagon of School Management Softwares. Its large and dynamic database makes it extremely user friendly and covers the minutest details of managing a school in an effective manner. Our software has unmatched flexibility, which can easily cater to any school or institution.

Our flagship is that COM software is 100% customizable. It can be tailored according to your needs and it caters to every category of schools. This state-of -art software can confidently pose a challenge to all existing school management softwares in terms of excellence in all the sectors that it covers. We have divided our entire software into various modules which can be used both individually and also in a combined manner. All the modules are closely interlinked with each other and are fully automated. A single login allows you to access the information you desire.

COM School Management Software is a complete solution for all educational establishments and is sure to give an impetus to the performance of the schools and all those using our software. It covers the daily school tasks such as Registrations, Admissions, Fee Structure, Bus Routes, Examination Management, Creating Time Tables for both teachers and students, Hostel Management, Attendance, Accounting, and over hundred modules that will escalade the managerial skills and the performance of the school in all spheres.

Our dedicated and highly qualified software designers, developers and the entire team of COM School Management Software have intensively researched on the requirements of running a school in an effective manner. The software will enable its clients to track details of the past and also the current details of the students. It also offers unlimited report facility and is very cost effective. Multiple registered users can use this software at the same time. Our experts will train the customers and rest assured we have the Best Support System that will be at the beck and call of its customers, any hour. We are 100% reliable and believe in uncompromising ethical standards of honesty and integrity.

COM School management will remarkably reduce 95% of manual work. It will be hassle free and reduce the wastage of paper in school. This software is beneficial for the schools, administrators, educational institutions, students, teachers, employees and also the parents. Software that will help you in running your organization smoothly, with panache!

More Information this about software plz Visit @ http://school-college.com

Management » College And University

Unresolved Tension: the Quandary of Revenue Management Versus Service Management – Parts 1 & 2

School Management Software