Revenue Management

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Revenue Management

Value

Oragnizational profit(tangible benefit)=Selling price-Costs

Personal Profit=Perceived value(intangible benefit)-Selling Price

Quality, Service, Price

Intangibilitiy, Inconsistency, Inseparability, and Inventory

Strategic Pricing

Value=Perceived Benefit-Price

4 Ps= Product, promotion, place, and price

Supply, Demand, Equilibrium price, break-even point

Fixed, variable and mixed costs

ADR=Total room revenue/total rooms sold

Occupancy %= Total rooms sold/total rooms available for sale

RevPAR=ADRxOccupancy%

RevPOR=Total Revue/Total Occupied Rooms

Accountant's Profit Formula

Profit=Sales-Costs

Profit= The Reward for Risk

ROI= Return on Investment

ROI= Investment Return/Original Investment

Revenue-Expense=Profit