Research Title: Revenue Management Used by Different Hotels in Baguio City to Sustain their Business Against Rising Competition

required: Can u fix the rationale. State a revenue management strategy that is effective on one, two, three, four and five star hotels and what is the advantage of that strategy.

Rationale

The outbreak of the 2019 Corona Virus pandemic has undoubtedly, crippled business enterprises of all kinds around the world, as they currently experience a significant economic decline. A safe hypothesis for its cause is direct and indirect factors that stem from measures taken by governments to prevent or slow-down further spread of the disease. What this research wants to focus on specifically are hotel businesses, as they have been made unable to operate in the normal course of business, due to the nature of their offered services being deemed too risky, in light of the said pandemic.

The aim of this study is to apply different revenue management strategies within hotel industry to help owners to anticipate demand and optimize availability and pricing in order for them to achieve the best possible financial results.

A research from hotel revenue management strategies for 2020 by John Attala that was published last November 09, 2019 says that the hotel industry is competitive to say the least. From the rise of Air bnb to changing guest expectations to changing hotel management trends, hoteliers face a variety of new challenges. At the end of the day, though, what will separate the winners from the losers in the hotel industry will be the willingness to adopt entirely new hotel management best practices. Insofar that hotels are businesses, the biggest need for adaptation or change is in revenue management.

After all, fads and trends come and go, but the ones most worthy of hotelier's attention are those that impact a hotel's bottom line. So as technology and guest expectations continue to evolve at an increasing pace, we've taken a look at the revenue management strategies that hotel operators should focus on in the coming years.

The different revenue management strategies they used are Revenue Management KPI's which aims to maximize their revenue and reduce their cost, this includes Average daily rate, Revenue per available room, Cost per occupied room and gross operating profit per available room. They also used Managing Energy Cost such as Smart HVAC technology, and Smart lightning technology. Next strategies they used is of course Segmentation and Price Optimization which also aims to book the right room with the right guest at the right price. One of the most effective ways to do that is to identify different customer "personas," and then examine each of these segments to evaluate how, when, and why they book hotel rooms or other hotel facilities. And with that understanding of their guest personas/segments, a hotel can adjust its pricing. There are several key advantages to this kind of segmentation and price optimization. First, room rates can be optimized for a particular segment, and price changes can be minimized. Secondly, it fosters customer loyalty and repeat bookings from guests who appreciate price consistency and personalized service. And lastly Pricing Strategies, of course, there are a lot of different pricing strategies out there, but for hotels, implementing the right pricing strategy is about finding the best pricing for a particular hotel, based on (1) the amenities and guest experience they offer, (2) the segments they want to target, and (3) competitors' respective strategy.

Another strategies applied by the research entitled Hotel Revenue Management Strategies to Boost your Top line Revenue that will help the Hoteliers are Better Management Resources, Protection Against Rostering too many staff during slow periods and ensuring adequate numbers of staff that works during busiest times.

Last is from Revenue Management 101 by Ira Vouk, they used also different strategies to have a successful revenue management, first is Dynamic Pricing, the advantage of this concept is the ability to adjust to the real demand fluctuations. Second is setting stay restrictions this helps hotels maximize revenue potential through managing shoulder days. Next is booking channel management, the purpose of this is to maximize revenue through restricting some distribution channels with different profitability margins. Another is Overselling (or overbooking) is a technique used in Revenue Management to offset anticipated cancellations and no-shows and lastly managing group and corporate business, assessing the profitability of these booking channels and managing them to maximize revenue and bottom-line profit for your hotel.

Thus, the researchers aim to study the revenue management strategy designed to help hotel companies to rent their rooms at lower cost, as well as help management prepare future plans, notably during seasonal peaks and drops on hotel services demands. The research will help hotel businesses minimize costs and establish a loyal clientele. Another aim of this research is to find out why companies employ revenue management strategies

Proposed Methodology

Research Design

The researchers chose the quantitative and interview/survey research design because it best served to answer the questions and the purposes of the study. Both qualitative and quantitative data shall be observed as it will get the opinions and suggestions and numerical data from the respondents through the survey questionnaire.

Sampling Design and Technique

Convenience sampling is used in this study as the subjects are selected because of their convenient accessibility to the researchers. This is also the best sampling design to use considering the current pandemic situation.

Instrumentation

Survey questionnaire and the interview will be conducted by the researchers themselves. It will be online or face to face depending on the situation.

Data Gathering Procedure

The statement of the problem has been analyzed first by the researcher to come up with a question that will be asked in the questionnaire/interview. Aside from the survey given to the respondents, the researchers will also use secondary sources like books and the internet to gather more information.

Statistical Treatment

The collected data within the survey will have a statistical treatment such as frequency and percentage and also a descriptive summary about the opinion of the respondents. The statistical tool that will be used is the Microsoft Excel. It is for the convenience and accurate way of computing the gathered information since that the data collected are mostly in n Scope and Delimitation of the Study

• Scope and Delimitation of the Study

This study will be conducted with limited time framework as given by the instructor. Respondents would be the managers of different hotels in Baguio that will respond to our invitation.

Statement of the Problem

This study aims to understand the revenue management strategies managers used amidst rising competition, specifically which they use to sustain their business in terms of profitabilityand also to understand the problems encountered in the strategies.

Specific Questions:

1.What is the level of implementation among revenue strategies?

2.What is the level of profitability of the hotels when they are using such revenue management strategy?

3.What is the relationship between the level of implementation of revenue management strategy and profitability of the business?

4.What are the problems encountered in revenue management strategies?