Duetto: Industry Transformation with Big Data: Harvard Case Solution & Analysis

Duetto: Industry Transformation with Big Data:Case Solution

Importance of revenue management in the hospitality industry:

• Revenue management is very important for hospitality industry. Moreover, revenue management for hotel industry is to sell the right room at the right rate at the right time.
• Revenue management focuses on price optimization.Traditionally, revenue management in the hospitality industry increases occupancy as primary goal, whereas in modern revenue management, increasing profit is the primary goal.
• Dynamic pricing exists in modern revenue management, which is helpful for the company to set a competitive price for a room, whereas in traditional system, pricing could be done on best available rate pricing.
• Revenue management in the hospitality industry helps to achieve:
  • Competitive pricing.
  • Market segments.
  • Company divisions.
  • Customer Expectation.
  • Automatic pricing.
  • Integration with marketing and sales.
• Competitive pricing is an important objective for the company to expand its growth because pricing is an important part of business. Moreover,hotel industry attracts the customers by offering discounts therefore, proper pricing should be done for better revenue management.
• By revenue management, a hotel can be able to remain competitive by competitive pricing. Revenue management creates awareness among the divisions and Market segments.
• Revenue management helps to integrate marketing and sales department of the hotel because marketing plays a key role in the success of the company.

Challenges faced by rapidly growing hospitality firm:

• Hospitality is the largest industry. Moreover, hospitality includes hotel business, resort. In these types of industries,external environment is rapidly changing, with the introduction of new IT system to support the business otherwise, the hotel business will lose its revenue and profits.
• When a consumer pays money, then it is obvious that he/she wants the latest technology in the hotel, therefore the owners of this industry face rapidly-growing hospitality issue.
• To manage these problems, the hotel should establish survey department, (i.e. when consumer exits the hotel he/she is given a form to fill) and by this the owner will know that what the consumers demand, which can be catered accordingly. Another way to face the problem is through market research as to what consumers are expecting from the hotel...........................            This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

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