Revenue management of a tourism and hospitality company is about generating more revenue and increase profits. Organizations have reported that after implementing revenue management their profits increased marginally. The growth in income also gets multiplied when revenue management is adopted by all departments in the organization.
Revenue management in Tourism and Hospitality Industry is about selling the same product to the right customer at the right time in order to increase the revenue. Several professionals in tourism industry refers revenue management as yield management. It is to be noted that the same product is being marketed in order to increase the revenue.
The process of revenue management is done through discrimination of pricing and segmentation of existing as well as new markets. The need and wants of customers varies across different market segments. Customers from the middle class usually prefer low-cost tour packages and travel on weekends while business class travelers do not concerned about pricing. It has also been found that older people prefer to go to less crowded place preferably during midweeks.
For revenue management, it is essential to have a cultural shift. necessary technology should be adopted by all departments in order to increase the revenue. more detailed analysis needs to be carried out and proper measurement of the various factors need to be done as part of revenue management.