Revenue Management and Profit Optimization

“I know I need to sell the right product, to the right customer, at the right time, and right price. How do I do that?”

To optimize revenue and profit, demand is forecasted by product or service, and inventory or supply subsequently filtered to the most profitable distribution channels and customers. It is important to avoid treating customers with a “one size fits all” mentality, and to recognize the strength of individual products and services.

To optimize revenue and profit, demand is forecasted by product or service, and inventory or supply subsequently filtered to the most profitable distribution channels and customers. It is important to avoid treating customers with a “one size fits all” mentality, and to recognize the strength of individual products and services.

Revenue and Profit Optimization at Grand Traverse Resort – Case Study

The Grand Traverse Resort and Spa in Michigan offers golf, tennis, spa, health and fitness, and beachfront activities and hosts both leisure and group business. The management team engaged Integrated Insight to identify strategic opportunities to maximize profitability in the short term, holistically leveraging all resort offerings, and to position the Resort for sustainable long term growth. To achieve the objectives, primary research was conducted among target consumers to understand perceptions and where there may be gaps, and a Strategic Revenue Assessment to identify opportunities. Analysis showed some group business was offsetting leisure demand during peak periods.

Walt Disney World Revenue Management and Profit Optimization – Case Study

Our Revenue Management program at Walt Disney Parks and Resorts encompassed over 25,000 hotel rooms and vacation club resorts, 4 cruise ships, 80 table service and over 100 quick serve restaurants, millions of merchandise SKUS, arcades, and golf courses. Each of food and beverage and merchandise were $1B businesses in their own right. Successive revenue management systems were implemented to realize incremental opportunity while managing expensive capital costs. Included were Central Reservations, ticketing, hotel revenue management, table management, food and beverage and retail price optimization, and special events. Each line of business routinely realized 4% to 5% revenue growth year-over-year.

When to Focus on Revenue Management and Optimization

Revenue management and optimization is critical when:

– Your product line is stratified.

– Your business experiences obvious peaks and valleys.

– Your customers are diverse in preferences and behaviors.

– You are looking to increase revenue without aggressive price increases.

The Integrated Insight Difference

– We are not selling a system and are indifferent to the one you choose to use. Our goal is to help you make the most of the investment.

– We lead with the consumer, avoiding short-term, algorithmic opportunities that on the surface will create long-term ill will.

– Our expertise covers a variety of functions, not just airlines and hotels. Food and beverage, merchandise, advertising, sports, theaters, transportation, etc. are all in scope.

– We view your organization holistically to understand how the customer’s overall behavior can be influenced to produce optimal profit.

– We set up processes, implement tools, and train your organization to use them, or we provide revenue management services to you.

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