The Luxury casino hotel dynamic price strategy practices for the FIT customer segment

This research paper compares room rate luxury casino hotel pricing pattern between the periods of 4/1/2009 to 6/30/2009). A good price strategy can help a hotel optimize both price and demand. The price strategy is also the only way a hotel can offset its demand in advance. Price strategy experienced several revolutions after the hotel industry adopted the Revenue management (RM) price strategy from the airline industry, which has changed it profoundly in the past decades. The RM price strategy is, more than ever before, a fundamental influence on RM practice. This is not only because of its financial point of view, but also because it is strongly related with all aspects of hotel management marketing strategies, such as forecasting demand, controlling the pace of booking, and understanding customer price elasticity

Theoretical, methodical, and applied aspects of the use of forecasting methods in the process of risk management of hotel and restaurant business

У статті розглянуто теоретико-методичні та прикладні аспекти використання методів прогнозування в процесі управління ризиками готельно-ресторанного бізнесу. На підставі узагальнення та систематизації існуючих методів економічного прогнозування виділено ряд з них, які є найбільш придатними в процесі управління ризиками готельно-ресторанного бізнесу. Вибір конкретного методу прогнозування ризиків готельно-ресторанного бізнесу здійснюється відповідно до мети і завдання розробки прогнозу, періоду упередження, повноти, достовірності та способу представлення інформації про економічні процеси, відносини та явища, обтяжені ризиками. Запропонований набір методів прогнозування ризиків готельно-ресторанного бізнесу дозволить підвищити якість підготовки та прийняття управлінських рішень в процесі управління ними.Hotel and restaurant business is one of the most risky business in the world. The results of the hotel and restaurant business are influenced by: the cyclical nature of consumer demand, the ratio of price and quality of services, weather conditions, environmental and political situation, the degree of development of transport and social infrastructure, location, etc. Reducing the negative impact of various types of risks on the hotel and restaurant business requires search for effective mechanisms for managing them. An important component of such a mechanism is forecasting, which is one of the means of substantiating management decisions in the process of risk management. The presence of a significant number of forecasting methods, of which there are more than 150, makes it difficult to use them in the risk management process of the hotel and restaurant business. Insufficient availability of theoretical and methodological support and practical recommendations on the use of forecasting methods in the process of risk management of hotel and restaurant business determine the urgency of the chosen research direction. The purpose of the article is to improve the theoretical, methodological and applied aspects of using forecasting methods in the process of risk management of hotel and restaurant business. Based on the analysis of existing methods of economic forecasting, a number of methods are identified that are most suitable for use in the process of managing the risks of the hotel and restaurant business. Such methods include: intuitive (or expert) and formalized (or fact graphic) economic and mathematical methods; methods of economic (system) analysis; normative methods; balance method; program-target method. These methods are divided into subgroups and include a certain set of tools. Each proposed method of forecasting the risks of hotel and restaurant business is given a brief description and features of the application. The choice of a specific method for forecasting the risks of hotel and restaurant business is carried out in accordance with the goals and objectives of the development of the forecast, the period of forecasting, completeness, reliability and the way information about economic processes, relationships and phenomena that are burdened with risks. The proposed set of methods for forecasting the risks of hotel and restaurant business will allow not only to anticipate the impact of risks on the financial and economic performance of hotel and restaurant establishments, but also to improve the quality of preparation, adoption and implementation of management decisions in the management process

An approach to revenue management strategies in the hospitality industry

YM is characterized as integrating the techniques, formulas, and strategies used to manage inventory, pricing, and sales policies. When linked to the hotel and tourism sector, YM manages availability, accommodation control, and discounts applied to overnight stays. RM is the evolution of YM, where using the full potentiality of the elements allows for maximizing revenue in periods of high demand and maximizing demand in periods of low revenue. RM is based on demand forecasting, price and inventory management, distribution channels, and revenue management performance. The world of hotel distribution is very complex and there is no way to control it. The Revenue Manager must be vigilant for the large price disparities in the various distribution channels. The distribution channels allow the hotel to reach a wider market share and an increase its competitive range. The Crowne Plaza Porto has a wide network of distribution channels represented by direct bookings and contracted distributors: Direct reservations come from four sources: Central Reservations Office (CRO), direct contact with the reservations department, the IHG brand website, and the mobile app. This research presents a qualitative methodology, applied to the Hotel Crowne Plaza Porto, whose purpose is to identify the segmentation introduced by two main segments: Individuals and Groups. The results of this research suggest that each of these segments is divided into several subgroups according to the specificity of their characteristics, and adequately identified, allowing the hotel's Revenue Manager to apply different strategies to the different customer groups, equally justified.info:eu-repo/semantics/publishedVersio

Foreign Exchange Rate Effect on International Gaming Demand: An examination from an Upscale Las Vegas Casino

Las Vegas has developed into one of the world’s top tourist destinations, and the international market has become a vital stream of the city’s revenue. The objective of this study was to understand the foreign exchange rate as a determinant for international gaming demand in the Las Vegas gaming industry. This study applied the econometric modeling method of panel data analysis to secondary data originated from a Las Vegas Strip casino property. This study attempted to validate the foreign exchange effect through empirical investigation. Results of this study showed that foreign exchange rate has an impact on international gaming demand

Modeling the supply and demand for tourism: a fully identified VECM approach

Cointegration analysis has gradually appeared in the empirical tourism literature. However, the focus has been exclusively on the demand side, neglecting potentially-important supply-side influences and risking endogeneity bias. One reason for this omission may be the difficulty identifying structural relationships in a system setting. We estimate a vector error correction model of the supply and demand for Hawaii tourism using a theory-directed sequential reduction method suggested by Hall et al. (2002). We compare forecasts for the selected model and for two competing models. Diebold and Mariano (1995) tests for forecast accuracy demonstrate the satisfactory performance of this approach.catastrophe, Cointegration, Vector error correction model, Identification, Tourism demand and supply analysis, Hawaii

Revenue Management Performance Drivers: An Empirical Analysis at Four Points by Sheraton

The purpose of this management project is to analyse the current and future scenario of the revenue streams of the Four Points hotel Mumbai in India. Revenue Management (RM) is an important tool for matching supply and demand by segmenting customers into different segments based on their willingness-to-pay and allocating scarce capacity to the different segments in a way that maximizes firm revenues. The benefits of RM are well accepted in the hospitality industry, and the technical aspects of RM form a rich analytical research stream. Forecasting for a hotel revenue management system is intrinsically difficult. Competitive actions, seasonal factors, the economic environment and regular fare changes are but a few of the challenges that must be overcome. This report examines the challenge of forecasting for Four Points hotel’s revenue management system being a fairly new hotel in Mumbai. With the Indian economy booming, India is increasingly becoming a centre for tourists and business destination. This report aims to study the trends in the hospitality industry and analyse the current situation of Four Points hotel Mumbai’s various revenue management models to enable the hotel to increase sales to enhance its business performance and create its own identity in the world of Hospitality. Mice tourism, pricing, and various concepts of revenue management are few others covered in this report. The literature shows that market segmentation, pricing, forecasting, capacity allocation, contribute to effective RM. In this report these elements have been grouped into two concepts: RM technical capability and RM social support capability and propose that these four elements positively impact RM performance. The number of rooms a hotel can sell and at what price is all determined by the booking limits set by the revenue management system. Standard rooms are the lowest category of rooms available which are always overbooked. The hotels continue to sell these rooms until the booking limit is reached after which the hotel does not show vacancy on those categories. Demand in that class of rooms may exceed the booking limit, but the data does not reflect and this is censored or “constrained” at the booking limit