Revenue Management in Aldermar Resorts Spas Example

Essays on Revenue Management in Aldermar Resorts Spas Case Study Revenue Management in Aldermar Resorts Spas of the of the The roles and responsibilities of the employees in the YM decision-making system The roles and responsibilities of the employees of an organization are highly significant when it comes to the implementation of new business and corporate strategies. The role of different levels of employees is also important in the case of the Yield Management (YM) system implemented in Aldemar Resorts and Spa. There are three main levels of decision making involved in the Yield Management (YM) system of Aldemar Resort and Spa. These are the tactical pricing decisions, the strategic pricing decisions and the operational pricing decisions. Each of the level of pricing strategies in the Yield Management functions requires the active involvement of groups of employees. Some of these groups of employees are essentially overlapping in the decision making processes involved in the total Yield Management processes. The strategic pricing decision making stage involves the senior management level of employees because this stage takes into consideration the corporate requirements and strate gies (Lewis and Slack, 2003, p.34). Since the strategic pricing decisions involve the use of long term decisions and choices, therefore, it is crucial to involve the higher level of employees in this stage of the Yield Management system. The operational level of pricing involves a consideration of the daily requirements of the operational processes which means that a comparatively lower level of employees are also actively involved in this level along with the line managers, production managers, procurement managers etc. (Schneider, 2003, p.80). The tactical level of decision making involves taking decisions regarding the room rates, food prices and other main products and services of the Aldemar Resort and Spa. As such, it is essential to involve a wider level of employees in this segment of Yield Management. It is also necessary to coordinate and integrate the main decision making processes among the three levels of Yield Management i.e. the strategic, tactical and operational lev els of pricing decision making (Johnston, 2007, p.140). Information required in each level of the decision-making process A wide array of different types of information and data from various departments and units of the whole business are to be collected, evaluated and analysed to setup an effective and productive yield management process in the Aldemar Resort and Spa. Each level of the yield management program needs to consider specific types of information for deciding on the suitable pricing strategies. The role of information collection, analysis and management is significant in the revenue management process of any business (Hammer, 2004, p.80). The operational pricing decision making level in the Yield Management system involves the use of data that are daily maintained in the resort. The information collected at the operational level includes the financial data and information like the rates of the rooms, the costs associated with the room allocation, room services and other ancillary services related to the guest management in the Alderman Resort and Spa. The records of reservations, the data re lated to the bookings of rooms and other services like spa, food, room service etc. are used as the important information in the operational pricing decision making stage in the Yield Management system in the Aldemar Resort and Spa. The strategic pricing decision making level would need to use information regarding the corporate level strategies of the business and the strategic objectives of the resort (Murthy, 2008, p.66). The tactical level of pricing decisions would need information like sales opportunities and competitive rate maintenance at the strategic level of the company (Greasley, 2007, p.40). Factors affecting the sales forecasts and yield management decisions The sales forecast and the yield management functions and decisions of the Aldemar Resort and Spa are highly dependent on the internal and external factors that influence the profitability, continuity and revenue management of the Aldemar Resort and Spa. The sales forecasting should be done on the basis of external factors like the seasonal demands, competition level in the industry etc. Additionally, the sales forecasting should also effectively consider the internal factors of the business like the ability of the business to meet the demand levels, the supply condition, the availability and allocation of the resources and capabilities in the resort (Cooke, 2012, pp.90-95). In order to assess the yield management processes effectively, the management of the resort has to take appropriate decision in every stage of the yield management system and proper decisions can only be taken when there are adequate information available to the managers based on which they can take the decisions . Therefore, the company should employ intelligent sales forecasting methods. Since, sales forecasting is an important part of the business strategy of any company, therefore, the Aldemar Resort and Spa should involve the consideration of the employee feedbacks including the front office and the back office employees, the financial and operational data available in the resort, the future business objectives of the resort as well as the business level strategies like pricing decisions, marketing and product designing (Palmatier, 2004, p.60). The method of increasing the accuracy of the Yield Management decisions Since the Executive Director of Aldemar Resort and Spa, Alexandros Angelopoulos has focused on developing suitable strategies to optimally allocate the resources and set effective pricing decisions in the company, therefore, he should consider making a suitable use of the available information in the business. The accuracy of the Yield Management system in Aldemar Resort and Spa can be enhanced by making use of the existing data maintenance systems as well as by introducing more improved record maintenance systems in the business (Franke, Keinz and Steger, 2009, pp.100-102). Apart from this a careful integration of the information and decision making processes in each level of the Yield Management system should also be made to enhance the performance of the revenue management or yield management system that has been implemented in the company (Batemen, 2003, p.44). The company should try to involve all the level of the employees in while revenue management system and foster an organi zational culture of team spirit, proactivity, collaboration and communication to make the yield management function more capable and accurate. Also, a continuous focus on the trends and competitive factors in the external environment of the business would help to improve the overall efficiency of the Yield Management system and its individual decision making levels. References Batemen, T. 2003. Management: The New Competitive landscape, Sixth Ed. New York: McGraw Hill. Cooke, J. 2012. Operations Management. London: Ecademy Press. Franke, N., Keinz, P. Steger C. J. 2009. Testing the value of customization: When do customers really prefer products tailored to their preferences? Journal of Marketing. Vol. 73(5), pp.100-102. Greasley, A. 2007. Operations Management. London: Sage. Hammer, M. 2004. Deep Change: How Operational Innovation Can Transform Your Company. Harvard Business Review, Vol. 82(4), p.80. Johnston, R. 2007. Operation Management:Â  Theory and Practice. New Jersey: Prentice Hall. Lewis, M. Slack, N. 2003. Operations Management. New York: Taylor and Francis. Murthy, R. 2008. Production and Operations Management. New Delhi: Tata McGraw-Hill. Palmatier, G. 2004. Demand Collaboration: Whats Holding Us Back? Supply Chain Management Review, Vol. 8(1), p. 60. Schneider, M. 2003. Operations Management. Stamford: Cengage Learning.