Avant Garden: Exploring Possibilities for Improving Revenue Management

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Case Details:

Case Code : MKTG257
Case Length : 18 Pages
Period : 2009-2010
Pub Date : 2010
Teaching Note : Available
Organization : Avant Garden (Fictitious)
Industry : Hospitality
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Developing a Revenue Management Plan

A closer look at the breakup of the total revenue generated from the three different categories of rooms from 2005 to 2009, and the room nights generated from the three different segments of customers from 2005 to 2009...

Protection Levels and Booking Limits

Eeshita listened to the two AGMs patiently and then showed them the data she had been working on for the last few days. She said that the problems that they were facing could be tackled to some extent if Avant Garden resorted to implementation of booking limits...

Over Booking Limits

Eeshita knew that to complement these results and for an effective revenue management plan, implementing overbooking limits for each month was also necessary. She had made Prantik prepare a report on the no shows for the previous years...

Going Forward

After explaining the protection levels and overbooking limits, Eeshita asked Arunabha and Debanjan to implement the plan without further delay. She also asked the two AGMs to calculate the protection levels for the month of February from the data provided by the Front Office so as to render a hands-on training...

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Exhibits

Exhibit Ia: Monthly Average Daily Room Occupancy and Standard Deviation
Exhibit Ib: Seasonality in Month wise Daily Room Occupancy Data
Exhibit II: Monthly Total Revenue Generated from the Each Category of Room
(All Values are in Rupees)
Exhibit IIIa: Monthly Room Nights Generated by Business Travellers
Exhibit IIIb (i): Monthly Room Nights Generated by Leisure Travellers availing 15% Discount on Standard Room Rates
Exhibit IIIb (ii): Monthly Room Nights Generated by Leisure Travellers availing 20% Discount on Standard Room Rates
Exhibit IIIc: Monthly Room Nights Generated by Incentive Firms availing 25% Discount on Standard Room Rates
Exhibit IVa: Historical Demand for Deluxe Rooms at Full Fare for the Month of January
Exhibit IVb: Historical Demand for Luxury Rooms at Full Fare for the Month of January
Exhibit Va: Historical Demand for Deluxe Rooms at Full Fare for the Month of February
Exhibit Vb: Historical Demand for Luxury Rooms at Full Fare for the Month of February
Exhibit VI: Total Monthly Revenue Generated from Room Services in each Category of Room (All Values are in Rupees)

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