Mid - 8th - Izumi - Revenue Management

HH302 Revenue Management Home-based Assessment May-Aug 2020
ASSIGNMENT COVER PAGE
No. Student’s Name Student’s ID

1. Izumi Tandukar 181514
Lecturer Name : Mr. Bikrant Shrestha.
Programme Title : Bachelor (Hons) in Hospitality Management
Subject Code & Title : HE302n -- Revenue Management

Session : May-August 2020
Assignment Topic : Mid-Term Assessment
Submission Date : 21-06-2020
ATTENTION:
1) 1 day late from the date of submission - 25% will be deducted.
2 days late from the date of submission - 50% will be deducted.
More than 2 days late from the date of submission - ―0 grade will be awarded
2) Plagiarism - The University will not tolerate cheating, or assisting others to cheat, and views
cheating in coursework as serious academic offence. The work that a student submits for grading
must be the student’s own work, reflecting his or her learning. Where work from other sources is
used, it must be properly acknowledged and referenced.
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ASSIGNMENT 1: CASE STUDY AND REFLECTION [30 MARKS]
1. Which other platform can Red Bull use to capitalize on its revenue in the context Nepal?
Mention at least three platforms and clarify why you chose it. (15 marks)
The accomplishment of any item relies vigorously upon its customers. There have all the earmarks
of being various incomes from this organization! Red Bull isn't only a beverage of vitality, it wasn't
since a long time ago that. Red Bull, which was propelled in 2007, is a famous caffeinated drink
with its own substance Strategy Media House. From the beginning, brand has put vigorously in a
wide range of stages and exercises with the goal that its clients even create districts, for example,
Nepal and are included. It implies that a brand itself takes an interest in occasions, networks and
capacities that produce content not for buyers. For instance, this brand has formalized substance
creation on sports, social occasions, ventures and interactive media encounters, etc. Temporarily,
it manages individuals intrigued by extraordinary games like SAFF GAMES and experiences once
in a blue moon like VISIT NEPAL 2020. The point crowd, for instance youthful and experience
individuals who love sports and a movement way of life, can without much of a stretch be
recognized.
While talking explicitly about creating nations like Nepal, in the event that it figured out how to
utilize exact stage, this is a tight visitor scope, at that point it can likewise be productive and
successful. Red Bull, for instance, should lead a progressively compelling marking effort as far as
pulling in new clients and expanding buyer dependability than Pepsi or Coke as a result of its
sincere motto that associated us, the Nepalese's have a passionate connection to such items. It is
essential to recollect that in each market, the organization utilizes a similar methodology as in the
past. Red Bull is introduced to youthful experts and youthful grown-ups as an in vogue vitality
boosting drink. So the diverse stage can to upgrading their income in the setting Nepal are:
Worldwide brand Red Bull must utilize sponsorship enactment, marked substance and
advancements to make another character to take over investigating exercises, for example, Nepal's
travel industry. In the event that the famous caffeinated drink supplier Red Bull, got known inside
the travel industry, their sponsorship arrangements will spread more extensive and more extensive
in the customary Nepal zone that ought to be featured. However, it's just conceivable in the event
that they've simply publicized over a scope of or profoundly engaged with their different the travel
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industry divisions, for example, recreational trekking, climbing, mountaineering, wilderness

safari, boating, visits, and so on. Their promoting sponsorship approach is unmatched and has
conceivably changed the manner in which various worldwide organizations support groups as the
travel industry division is the biggest help industry and remote trade and income source. A few
people need to think about our history, culture, confidence, and so on. We can see that a few
travelers come to spend their excursion here. Its advancement ought to be firmly organized for all
segments included. One of Red Bull's best instances of a stage is to visit Nepal 2020, an activity
by the legislature of Nepal that will support the nation's vision in 2020 and past. The objective is
to draw in and have in excess of 2 million individuals. (Basan, 2019). The "Visit Nepal 2020
intends to bring issues to light of the issue among the remainder of the world. Notwithstanding the
mindfulness point, Nepal's administration plans to expand the travel industry all in all, as the
economy of Nepal depends for the most part on the travel industry and refueling. The endowment
point is accordingly, in light of a legitimate concern for creation, to additionally develop and
improve the business. Along these lines, the Red Bull brand mindfulness ought to manufacture. A
brand can exploit advertising. Another stage is sorting out and supporting to various youth symbol
program, for example, Body Building rivalry, Modeling Contest, Nepal Idol, Voice of Nepal, etc
that assists with improving Red Bull underwrite here in Nepal. This stage is essentially led with
youthful blood, and the primary concern about this sort of program is that nation is completely
included, in light of the fact that individuals are going to cast a ballot their preferred possibility to
win. On the off chance that this brand advances the famous picture of two red bulls that have heads,
it is no doubt that it supports a scope of youth symbol programs. It implies that Red Bull can speak
with youthful crowds across Nepal and offer its image name as a stage for energizing exercises,
advancing and taking an interest in endless occasions in a locale. Red bull would then be able to
adjust its substance system to incorporate a wide range of devotees all through Nepal and presently
has its own media organization, the Red Bull Media House. These have Red Bull TV in the media,
where crowds can get to every marked item legitimately from their foundation and live occasions.
In this manner, all Red Bull exercises, which they are answerable for, make it simpler for Red Bull
to expand their profile in the Youth Icons programs that had been held over the span of time for
every occasion, which was fundamentally marked substance. The last and third stage can be going
with the substance ventures. The association has numerous necessities so as to guarantee that top
notch content is delivered. You can ensure that each substance you produce has esteem. Bull is a
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brand and friends that knows where they can find themselves. Numerous individuals had the option
to urge them to satisfy their fantasies. It will fabricate the personality of a brand across Nepal,
which will consistently meet up with activity, motivation and opportunity. At the point when they
produce numerous highlights for their substance adventures, for example, films, TV narratives,
singular occasions, short clasps, live communicates and highlights moving. It likewise distributes
magazines, photos and other data, including news. (Racoma, 2019). You can see that they convey
diverse substance for their various markets, however guarantee that the focal point of the brand is
steady.
To finish up, the travel industry part investigation, association and sponsorship of different Youth
Icon programs, and the substance venture are three stages where Red Bull could underwrite
colossally on its incomes. Incredible, it keeps on overwhelming the area, however it additionally
triumphs new markets, grows new types of activity and goes through Nepal. These open doors for
publicizing are generally obvious, giving a large number of client's consideration. Advertising can
be driven by brand name, logo and crucial fans in the event that they practice sports most such
projects assist clients with interfacing with the brand and energize dedication well past the
acquisition of beverages.
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2. How does the external environmental factor affect the revenue of Red Bull in Nepal? Be
precise to the company and consider the current situation to the market. (15 marks)
Well there isn't any set up business that don't need to confront outer power neither one of the they
can be control. Being exact to the organization according to current circumstance there is no
uncertainty about it, that organization were in colossally misfortune and discussing the desire for
improving their deal will be slack.. The outside ecological factor that influence the income of Red
Bull in Nepal is can be get past PESTLE Analysis that features the distinctive outward situations.
It inspects the business analyzes through different outside elements like political, financial, social,
innovative (PEST) which impacts its business alongside legitimate and natural variables. PESTLE
examination is a structure which is basic for organizations, for example, Red Bull, as it assists with
understanding business sector elements and improve its business persistently whatever they had
faceoff in this pandemic.
a)Political Factors:
There are numerous components that politically affect Red Bull, some of them balancing out the
administration. Red Bull is a worldwide caffeinated drinks organization around the world, which
is intended to influence the simplicity of imports and fares of Red Bull through intra-Governmental
strategies so it exist here in Nepal as well. A wellbeing strategy which can impact the offer of Red
Bulls given the general's wellbeing incorporates one of the dangers. Since bits of gossip or
numerous analysts have broke down that Red Bull might not have genuine reactions on periodic
and moderate admission. In any case, it can have some negative, hazardous results when expended
consistently and in abundance. The legislature had actualize strategies of lockdown and hold all
the business that legitimately influence the deals of Red Bull and there are likewise some
assessment changes which Red Bull needs to follow.
b)Economic Factors
Nepal has a monetary condition that may influence the creation and offer of Red Bull, since the
elevated level of expansion implies that the organization is presented to high crude material
expenses and can along these lines increment the beverage costs of its separate clients. Nepal is
the most available nation imposed, which effectively expands every day through the span of the
century. One angle is the financing cost of the nation, as the credits are made by the Red Bull,
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which will influence its expenses and can likewise bring about a decrease in deals. As Red Bull is
an exceptional brand of any sort of worldwide financial emergency that legitimately influences the
offer of caffeinated drinks, for instance, an authority at Formula One Team Red Bull proposed to
hold a preparation camp that would open drivers to coronavirus with the goal that they could
assemble invulnerability from infection during the season (Press, 2020). Red Bull's general deals
additionally advantage from the simplicity of assets and accessibility of crude materials in their
particular nations as the beverage cost is expanding.
c)Social Factors:
The salary age of Red Bull is answerable for social factors, for example, populace life, the quantity
of youngsters in the nation and the economic wellbeing of the individuals. Socially the caffeinated
drink brands are cool and socially satisfactory, on the grounds that the picture of the game is related
with present day culture. Red Bull can exploit the feverish existence of the current age and all
partake in their bustling lives to such a degree, that caffeinated drinks like Red Bull become
fundamental. A few perils incorporate vitality refreshments, for example, Red Bull, which at last
buys less such beverages and diminishes deals in the nation where individuals become better
educated. Techniques, for example, sans sugar drink creation lead to wellbeing cognizant
promoting in the public eye.
d)Technological Factors:
The web use is the most significant innovative factor for the refreshment business. The main part
of vitality refreshment deals, for example, Red Bull are done through publicizing systems and
online advancement, which is an amazing chance. The way where an advertising organization
imparts to the client benefits two different ways, by sending an immediate message to clients,
additionally a modest and fruitful way and furthermore making it simpler for customers to speak
with the item through online life. The double who is found in bpromotions pay Red Bull a lot for
advertising introduction internet based life is Red Bull's best course yet being exact with current
pandemic it can't ready to exist or can be said it is slacked. Examination into the way in which Red
Bull is created and bundled encourages the organization to deliver the caffeinated drink at less
expensive expense and will likewise improve the nature of its bundling.
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e) Legal Factors:
All laws and guidelines that go under food and administrative enactment must be followed for a
caffeinated drink organization, for example, Red Bull. The business must agree to every single
legitimate prerequisite appropriate to a particular nation so as to be sold available. The organization
should likewise satisfy the security standards, with no symptoms, for human utilization. The law
may likewise confine the development of the organization in different nations, so it can likewise
turn into a danger for the organization. As a beverage business the fixings it utilizes in the beverage
must be quite certain and the measure of fixings utilized and their comparing supplement esteem
must be obviously determined in the jug. On the off chance that a customer's hypersensitive, at
that point the individual in question doesn't become ill of a particular fixing. This forestalls cases
and along these lines the organization's terrible picture.
f) Environmental Factors:
The greatest test confronting organizations like c is squander removal. The organization should
concentrate on supportability in the long haul. Red Bull confronted numerous natural issues, which
at last influenced the organization's image picture. Red Bull was named one of the best ten
organizations with the most elevated fines because of the issues of reusing, distributed in 2009.
The organization at that point improved the reusing framework by utilizing 100 % recyclable
aluminum jars (MBA Skool Team, 2019).
To entirety of all, the effect of COVID-19 on imports and fares of drink charges is a critical effect
on in general Red Bull deals. The infection has since spread internationally, adequately bringing
the organization's gracefully chain to a stop and all the more as of late, making its organizations
close and gathering meeting to hold. It's influenced almost every organization. The above Red Bull
PESTLE investigation features the various components that impact the current circumstance
regarding business execution just as references to outer business control. This comprehension
evaluates the criticality for any brand of outer business factors.
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ASSIGNMENT 2
1) Why was it difficult to adopt Yield Management in Hotel industry initially? List and explain
four major reasons. (10 mark)
A yield management system which can also be referred to as revenue management is a system that
attempts to understand anticipate and then react to consumer behavior in order to maximize
revenue/profit. (Martin, 2006)
To achieve maximum revenue/profit, a yield management system needs to understand what has
happened before and what is happening now; using this historical data to predict what may then
happen in the future. So, the yield management system will periodically review transactions that
have occurred between the consumer and the hotel. (Martin, 2006)
Yield management is a variable pricing strategy, based on understanding, anticipating and
influencing consumer behavior in order to maximize revenue or profits from a fixed, time-
limited resource.As a specific, inventory-focused branch of revenue management, yield
management involves strategic control of inventory to sell the right product to the right
customer at the right time for the right price.
In the accommodation business, yield the executives sometimes considered salary the load up
is a set enthusiasm envisioning techniques used to choose if costs should be raised or cut down
and whether a booking requesting should be recognized or excused to help pay. Cordiality
industry chiefs have successfully applied such enthusiasm assessing techniques to room
reservation structures, the board information system, room and group assessing, rooms and pay
the board, periodic rate affirmation, pre-theater dinner specials, and uncommon, gathering, visit
executive, and outing master rates. The vital goal of yield the board is to enlarge the salary with
the help of fruitful organization of three essential regions esteeming method, control of
openness, and stock control. The stock controls, when in doubt, depend upon the openness of
advantages, for instance, planes, fuel, and laborers. The control of openness just insinuates the
all dwarf of compassion arranges on board the plane.
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It was difficult to adopt Yield Management in Hospitality Industry for the following reasons:
 Hotel-related factors
The gathering of a Yield the executives structure requires some capital enthusiasm for both gear
and programming. completing a yield system requires that all staff including the officials need
readied and expansive and master arrangement will be required for staff on the front line the
appearance on such endeavor is most likely going to be increasingly significant in greater
properties in light of economies of scale. The sort of hotel and its zone, whether or not a
midtown region or rustic or commonplace, may in like manner sway in an indirect way the
determination of a Yield the board structure. This blend of segments may affect choice overall.
 Market-related components
It is suggested that the more staggering the market, the more unmistakable the prerequisite for
Yield the board. Market multifaceted nature develops out of different components: normality,
grandstand mix, and contention. Yield the board applies under different conditions. Two
conditions are that 'solicitation can be confined into unquestionable market parts' and
'solicitation fluctuates fundamentally'. Regarding the last referenced, it is inferred, yet ought to
be explicitly communicated, that such intrigue instability must consolidate huge time periods
when solicitation outperforms deftly. It is also induced, nonetheless, needs clarification, that
such change is likely going to follow different models inside different market divides. This
infers properties with raised degrees of inhabitance during the time need to ensure they support
salaries by getting refined assessing structures that ponder demands different events.
 Ownership factors
Motels that have a spot with and are worked by ties are presumably going to get Yield the
executives as a segment of that organization's information structure system. Chains can achieve
great economies of scale the extent that the capital purchase decision, planning, and focused
reservations systems. In light of this, different recommendations are progressed. They are:
1. Colossal motels will undoubtedly get Yield the executives than little hotels
2. Downtown zone lodgings will undoubtedly get Yield the executives than provincial or natural
hotels.
3. Non-periodic lodgings will undoubtedly grasp Yield the board than ordinary hotels
4. Lodgings with many market parts will undoubtedly get Yield the board than hotels with
hardly any market areas.
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5. Chain lodgings will undoubtedly get Yield the board than non-chain hotels. Other potential
variables might be the way of life of the lodging association, the key job of innovation, and the
degree of advancement inside the firm
 A high occupancy rate shouldn't higher prices
Hotels priced their rooms based on their current occupancy and not based on the market about
continuing updating their rates in real-time as the market conditions changed. Airlines' prices
are based on what the market will bear all the time, from 0 to 100% capacity where as hotels
often offer a fixed rate for rooms when their occupancy is less than 50%, then increase prices
after that. Not only is this an outdated practice, it's ineffective as well. As soon as the property
reaches a higher occupancy level and the rates are increased, it is likely that consumers will
stop booking. They were booking in droves before because the price/value was appropriate for
the market, but now that the rates have increased, it has probably been priced out of the market.
Hence, Yield management is a variable pricing strategy, based on understanding, anticipating and
influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited
resource. Historically used by the airline industry, yield management made its way into the
hospitality industry in the 70s. It was hard to embrace the yield the board framework in lodging
businesses at first than carrier ventures in light of the fact that Firstly, the most striking is that the
aircraft item (a seat on a leg of an excursion) is substantially more discrete than a lodging. Aside
from extra income openings, information about the carrier seat and leg required is known at the
hour of booking. Conversely, a lodging can be reserved for at least one evenings. Be that as it may,
the length of stay ends up being substantially more dubious with visitors consistently broadening
or shortening their setting up for extremely a surprising bit of news. Besides, the aircrafts can
marshal their travelers before boarding, when choices about the outcome of overbooking can be
made with all gatherings present. Interestingly, with visitors showing up arbitrarily for the duration
of the evening and night, the inn supervisor must settle on choices about the outcome of
overbooking before the visitors show up. These distinctions have offered ascend to somewhat
various needs in the improvement of income the executives frameworks in the inn and carrier
industry
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2) What is Customer Centric Approach? Explain four strategies on how a restaurant can
practice Customer Centric Approach during and after COVID 19 pandemic. (10 marks)
Client driven is a methodology that centers around conveying great client support both in the retail
business and after the arrangement so as to benefit and include esteem. Coming up next are the
four procedures for client focused feasting during and after the Covid-19 pandemic:
i. STREAMLINE TAKEOUT AND DELIVERY SERVICES

Bistros from cheap food to high caliber all through the nation were urged or expected to close
down food territories. Unmistakably, decreasing the gridlock for early hours implies diminishing
arrangement rates, which can demonstrate perilous for private endeavors. Luckily, most haven
regions have permitted bistros to keep on giving takeovers and transport specialists. This can be
an open way to help such specialists as a silver covering. Numerous eateries have made their
development increasingly creative for keeping up their systems. Bistros that are as of now prepared
for taking and passing on courses of action will additionally bolster those systems by streamlining
their exercises in order to make off-site food good as it would decently be envisioned. Here are a
few intends to take a gander at:
 No-contact mentioning establishment: disseminate your whole menu on your person to person
communication channels and permit the guest to call or post a pickup demand. Prize tip: use
Instagram or Facebook stories, finished 24 hours after, to incorporate for quite a while specials
and that is only the beginning. Prize tip.
 Offer pickup curbside: permit guests to call ahead and carry the solicitation to their vehicle. This
confines the measure of guests that go to your eatery so as to restrict the presentation of your
agents.
 Grow transmission choices, consider utilizing help from outer organizations, for example, Grub
Hub or Uber Eats to expand your movement territory if your café offers a methods for
transportation to pick a postal division.
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ii. KEEP COMMUNICATION OPEN

Tragically, during this time just one out of each weird bistro is permitted to stay open. Regardless
of whether it's to shield your workers from quality or not consider convincing vehicle in your
exercises, closing down your entrances is an awkward decision, yet maybe significant. Your
correspondence ought to likewise not be shut, in any case, in the light of the way that your kitchen
isn't simply starting. On the off chance that you are keeping the online life of your food shops
dynamic when your territories are bolted, your clients will consistently be here, and you will before
long return past everybody's creative mind. Given all that you consider them. Additionally, it
proceeds to state that a similar number of us have not yet left those dates when your regions close
and remember. Make a further move and make content that draws in customers, keeps them
connected with and connected to your image during test times. This is the starting spot:
 Test potential new menu things and offer experience by means of electronic systems administration
media in your home kitchen. Cooking chronicles offer a great deal of experiences — it's a perfect
open door for your café to engage in the exercises.
 Host laborers assume control over the Instagram Stories and perceive how your staff remains at
home and remains safe. Sharing stories refine your image and put your countenances behind the
news.
 Let your food specialists or cooks streak their abilities by offering an Instagram or Facebook Live
cooking exercise. Spot the word on social issues with the goal that enthusiasts can stack up what
they require and teach the individuals who are happy to imitate a dish of your trademark.
iii. CHANGE UP YOUR MENU

Notwithstanding, with all odds to stay open during this COVID-19 pandemic, you may need to
change it up a piece in light of the fact that your bistro is notable for its gourmet food and top food
experience. Here are two or three proposals:
 Smooth your recommendations not the ideal 10-page menu device. You most likely have hardly
any kitchen staff, so pick a couple of things that you can progress nicely, bring in cash and make
the most of your clients.
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 Go through stock, make dishes that you have been utilizing in nearness now. Despite the fact that
we have no issues right now in the flexible chain, it is a reasonable chance to go to canned and
other holding secure connections. As a rule, if things are back to typical, you can switch back
 Make or alter things to travel. Consider staples that are difficult to unite and ship. Pizza and
sandwiches were commonly included, however segments of blended greens are additionally
upgraded. With less customers, some new dishes of blended grasses and veggies can be welcome
on the menu.
 Family-style suits setup. Make your solicitation increasingly moderate and supportive! Put your
menu on the web and advance it by means of online systems administration media.
iv. TAKE THAT ORDER!

Consider it fantastically simple to present an application and pay for your food. This implies up
close and personal, on the telephone and on the Internet. This is the perfect open door without your
POS structure to acknowledge online solicitations. More seasons discover everything twenty to
multi year olds know for an extensive time arranging your supper on the web, having it and
savoring the experience of your own house is incredibly simple and valuable. That is your new
common one. When the crisis is finished, the customers should get and move dwelling. Expanding
the change won't simply quickly profit you, it will permit you to prevail in the long haul (Schmitt,
n.d.).
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3) Mention four Opportunities and Threats to your college? How could your college develop a
strategy to turn the potential Opportunities into Strengths? (10 marks)
IIMS College is an international degree at home is a valuable option because it provides many of
the benefits of studying abroad. To date, a degree in international relations like Nepal would be
very good for students looking to pursue their careers at a world-renowned university. Whether or
not these college providers possess well developed infrastructure, they have a negative factor from
which to purchase in due course, otherwise their future growth may be tremendously lost. So
SWOT Analysis of internationals education has conducted below:
Opportunity Threat
a) Expand to new larger location. a) Expand to new and longer location.
b) Attracting Nepalese students for updates on syllabus b) International degree may be new for
that is required to compete with national education homely students.
system. c) Market may become price sensitive.
c) Potential diversity into related education market. d) Major international degree college
d) International degree segment is poised for rapid may enter into targeted market segment.
growth help galvanize brand identity.
The opportunities can turned into strength if iims college:

 Recognize Respondents and Ask for Feedback:
The fundamental errand in the development is to amass examination from a mix of individuals
inside and outside work. By get-together duty from a game plan of sources—relatives, over a wide
scope of time associates, accomplices, educators, etc.— you can build up a much progressively
wide and more extraordinary comprehension of yourself than you can from a standard presentation
examination. As we outline the arrangement of the Reflected Best Self exercise, we will
incorporate the experience of Robert Duggan (not his ensured name), whose self-divulgence
process is essential of the supervisor we've seen. Having left a profitable occupation in the military
at a really vivacious age and earned a MBA from a top business college, Robert perceived a
midlevel the directors position at an IT benefits firm. Regardless of solid capacities and association
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experience, Robert stayed stuck similarly organized a critical long time after year. His presentation
assessments were usually sufficient yet not enough prepared to put him on the high-foreseen track.
Secluded, frustrated, and debilitated, Robert ended up being consistently pushed and bewildered
with his affiliation. His workday felt continuously progressively like a scene of Survivor. Planning
to improve his presentation, Robert assessed official direction program and took the RBS work
out. As a fragment of the activity, Robert amassed examination from 11 people from his over a
wide scope of time who recognized him well.
 Perceive Patterns:
Like distinctive who take a gander at the RBS work out, Robert foreseen that, given the not too
horrendous assortment of respondents, the comments he got would be clashing or regardless, doing
combating. Or of course maybe, he was struck by their consistency. The comments from his
revered one and family members took after those from his military amigos and work partners.
Everone watched Robert's quality under pressure, high extraordinary measures, enthusiasm,
intrigue, versatility, respect for composed mix, and get-together structure aptitudes. Robert all of
a sudden valued that even his little, crazy practices had set up a goliath relationship with others.
An unprecedented bit of the time, he had ignored the specific models inferred until he read the
assessment, since his lead in those conditions had felt like conventional to him.
 Create Your Self-Portrait:

The accompanying stage is to make an outline out of yourself that summarizes and distils the
collected information. The outline should weave subjects from the responsibility near to your self-
discernments into a composite of who you are at your best. Oneself picture isn't proposed to be a
completed mental and mental profile. Or on the other hand conceivably, it ought to be a cautious
picture that you can use as a token of your past commitments and as a guide for future movement.
The delineation itself should not be a tremendous measure of clear prompts at any rate rather a
piece structure beginning with the verbalization, "When I am at my best, "The course toward
working out a two-to four-entry account cements the image of your best self in your consideration.
The story structure similarly supports you draw in association between the subjects your life that
may beginning at now have emanated an impression of being disordered or immaterial. Shaping
the delineation requires some genuine centrality and deals mindful idea, regardless toward the
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satisfaction of this structure, you should leave away with a reestablished image of what your
character is. In working up his self-portrayal, Robert drew on the authentic words that others used
to outline him, offsetting the picture with his own assessment of himself at his best. He ousted
limits that felt misinformed. This didn't mean he limited them, at any rate he expected to ensure
that the general portrayal felt true blue and paramount.
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4 (i) A business traveler visits Pokhara 5 times a year and stays two nights each time. His
company has negotiated a rate with Hotel Barahi at NPR 1500 per night. For each visit, the
traveler always eats only one dinner at the restaurant during his stay at an average cost of
NPR 500 per meal. Each of the two mornings of his stay, he takes a quick breakfast at the
hotel at an average cost of NPR 200 per meal. The hotel’s acquisition cost of obtaining this
individual business traveler is NPR 100 per visit. Calculate the Total Customer Worth of this
business traveler to the hotel. (5 Marks)
Solution,
Primary revenue received is Rs 1500 per night for the hotel room
Ancillary revenue received by the hotel is Rs 500 for the dinner plus Rs 200 for breakfast.
Total ancillary revenue received by hotel is Rs 700.
Acquisition cost is Rs 100 per visit.
Propensity Y is equal to 5 nights per year.
Now, by using formula
Total consumer worth = (primary + Ancillary Revenue – Acquisition cost)* Propensity to purchase
= (Rs 1500 + Rs 700 – Rs100) * 5
= Rs 10,500
Hence the Total Customer Worth this hotel business traveler to the hotel is Rs 10,500.
(ii) A couple values the Valentines’ Day candle light dinner package offered by a highclass
restaurant at $500. They are willing to drive 1 hour to and another hour from the restaurant which
is 60 miles away. The car consumes 20 miles per gallon and a gallon ofgas costs $3. The couple
also values their leisure time at $15 per hour. They consider the dining time to be equal in value
to its cost, so do not factor in this amount. So what is the total customer value to the couple of this
candle light dinner?
Solution,
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Primary revenue received is $500 package offered by a restaurant

Total ancillary revenue received by restaurant is $20*3= $60
Acquisition cost is $60
Propensity Y is $15
Now, by using formula
Total consumer worth = (primary + Ancillary Revenue – Acquisition cost)* Propensity to purchase
= ($500 + $60 – $60) *15
= Rs 7,500
Hence, the Total Customer Worth to the couple of this candle light dinner is $7500.
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Q5. (i) Calculate the elasticity of demand (Ed) of the rooms of Princeton Hotel with the following
data given:
Room Rate Number of
($) rooms
430 200
500 150
(a) What is the Ed when the room rate increases from
$430 to $500? (2.5 Marks)
Solution,
Room rates increases from p1 to p2 $430 to $ 500
Q1= 200, P1=430
Q2= 150 P2=500
∆Q = Q2−Q1=150-200= -50 ∆P = P2 − P1 = 500 − 430 = 70
Ed = (%CHANGE IN QUANTITY DEMANDED%÷ CHANGE IN PRICE)
Ed= %∆Q / %∆P
= (Q2−Q1)/ (Q1+Q2)÷(P2−P1)/(P1+P2)
= −50/350÷70/930
= −0.143÷0.075
= $ −1.9067
18
(b) What is the Ed when the room rate decreases from $500 to $430? (2.5 Marks)
Solution,
Room rates decreases from p1 to p2 $500 to $ 430
Q1= 200, P1=500
Q2= 150 P2=430
∆Q = Q2−Q1=150-200= -50 ∆P = P2 − P1 = 430 − 500 = −70
Ed= %∆Q / %∆P
= (Q2−Q1)/ (Q1+Q2)÷(P2−P1)/(P1+P2)
= −50/350÷ −70/930
= −0.143÷ −0.075
(ii) We are taking a 1,500-mile flight with a yield of 80 cents per mile. There are 100 seats on
board which are 75% full. The total passenger revenue generated by this flight would be: (5 Marks)
Solution,
Room rates decreases from p1 to p2 $500 to $ 430
Q1= 200, P1=500
Q2= 150 P2=430
∆Q= Q2-Q1=150-200= -50 ∆P=P2-P1=430-500=-70
Ed= %∆Q / %∆P
= (Q2-Q1)/ (Q1+Q2) ÷ (P2-P1) / (P1+P2)
= -50/350÷-70/930
= -0.143÷-0.075
19
ASSIGNMENT 3: INTERNET RESEARCH
DWARIKA HOTEL
1.0 Introduction
1.1 Background
Dwarika's Hotel is a luxury hotel in Kathmandu, Nepal. It is located in the Battisputali
neighborhood. The hotel is a collection of various traditional heritage Nepali houses that
congregate around courtyards and is considered one of Nepal's finest hotels.The hotel is known
for its efforts in cultural preservation. Established in 1972, the Dwarika’s Hotel, following the
philosophy of preservation, restoration and revival, is a monument to Nepal’s historic, cultural and
architectural heritage. The idea of preserving carved wood was born in 1952 when late Mr.
Dwarika Das Shrestha came across some carpenters sawing off an intricately carved wood for
firewood. Witnessing this destruction of art prompted Mr. Shrestha to rescue the wooden pieces,
to preserve them. Following on his footsteps the Dwarika’s Hotel has been rescuing and preserving
wooden masterpieces and incorporating them into the hotel’s architecture from the day of its
inception. The wooden master pieces in display at the hotel are from the 13th to 18th centuries and
each of the pieces has its own history. ("The Dwarika's Hotel, Kathmandu, Nepal | Traveller
Made", 2017)
1.2 Establishment
Located in the Battisputali neighborhood, The Dwarika is a heritage hotel that takes its inspiration
from the valley’s rich cultural heritage and is modeled upon the architectural grandeur of the
palaces of the Newar Kings. The founder of the hotel was the late Dwarika Das Shrestha. The hotel
houses an extensive collection of artifacts from the 13th century onwards and preserves the
aesthetic sensibility of a unique civilization.The hotel is a collection of various traditional heritage
Nepali houses that congregate around courtyards and is considered one of Nepal's finest hotels. T
he hotel’s 79 rooms and suites have been designed to seamlessly mesh contemporary lifestyle with
the Newari style of living.
20
1.2 Idea Generation behind the startup

. In 1952, Shrestha saw carpenters cutting up an intricately carved wooden pillar of a demolished
old building, to use it as firewood . When founder Dwarika Das Shrestha decided to save old wood
carvings from traditional Kathmandu buildings that were about to be thrown away. N This inspired
his lifelong effort to save and reuse these historic carvings. Later put into a room that housed a
single masters student from abroad, the carvings garnered such interest that Shrestha found the
idea of constructing guest rooms with traditional wood carvings, and thus began the hotel venture.
Shrestha also revived the technique of "Dacchiapa," the Newari traditional method of making
carved bricks. ("The Dwarika's Hotel, Kathmandu, Nepal | Traveller Made", 2017)
1.3 Type of Business, Partnership

It is a family owned business managed by the Shrestha family
Shareholder’s - Privately owned
1.4 Nature of Business

Hospitality provider:- Dwarika hotel is a commercial property that caters mainly to business
people, tourists, and other travelers who need accommodations for a brief stay.
21
2.0 Customer Knowledge, Market segmentation and Selection
2.1 How company is identifying and analysing their customer

Increasing occupancy rates and revenue by improving customer experience is the aim of
modern hospitality organizations. To achieve these results, Dwarika analyses the customer
by collecting their
 Contact information such as name, sex, contact details, nationality, language spoken, if
physically challenged person, business address (if business traveler), means of payment,
etc. diet).
 Information regarding all aspects of the hotel stay such as accompanying persons, type of
booking (e.g., individual, group, etc.), type of room arrangement (e.g., double room, king
size bed, etc.), length of stay, type of room services required, use of food & beverage
services and other hotel facilities, etc. This information includes “compulsory” data as well
as spontaneous and behavioral data.
 Guest complaints and opinions on quality standards of hotel services and hotel staff
performance,which can be collected during the stay or just before check-out (customer
satisfaction),through printed forms or online questionnaires on interactive TV.
2.2 How Customer Centric Approach is practiced in the organization.

The hospitality industry has been based on serving and satisfying its guests, in todays connected
world it also needs to consider people who are currently strangers but could potentially become
guests. Dwarika hotel has practiced customer centric approach though through care, respect and
dignity to their people, through preserving, reviving and celebrating Nepal’s architectural, cultural
and natural heritage of the society. Supporting and promoting local industries, and by putting
Nepal on the map as a luxury tourist destination.
This wonderful hotel encourages its guests to photograph their experiences during their stay at the
hotel and then to post them on Facebook. This not only provides free publicity for the hotel, but
22
also enables it to start engaging these friends, whom one might assume are potential clients since
they are probably similar to their current guests.
2.3 Analysis of potential impact that changes occurring in consumer behavior (new trends)
may have on products and services, type of customer, current trend of customer, customer
habit, behavior in Nepal.
Change in the new trends would be constant in this century and the industry wont see any change
of behavior in the hotel.
23
d. Analysis and selection of market segmentation: how the market has been divided and
segmented, is the segment profitable?
Dwarika's Hotel, a Newari-themed hotel is one of the most celebrated boutique hotels of Nepal.
With 83 meticulously designed rooms and suites, The Dwarika’s Kathmandu offers a regal
Experience. Nepal and luxury aren’t two words that are typically synonymous with each other.
But Dwarika hotel caters those who are seeking for luxury but at the same time with the blend of
culture and historic art.
It services are aimed at niche market targeting customers who look forward for luxury, and serenity
at the same place. It inclines towards expensive hotels of Nepal and targets customer who want a
get away from their everyday life and rejuvenate themselves.
They are not targeting the domestic tourists, or the youths but international tourist who want
comfort and luxury at the same time enjoy the Nepalese/ newari culture.
e. Identify and assess new market segments: potential new market coming up
There are no new upcoming market for Dwarika hotel but it has recently opened Dwarika resort
in Dhulikhel which has some potential market.
It is established with the belief in the need for maintaining harmony between the body, mind, spirit
and earth for a peaceful, healthy and balanced life, the Dwarika’s Resort is built on the philosophy
of respecting nature and self. The resort takes its inspiration from ancient Hindu Vedic scriptures
(vedas), Buddhist medicine and traditional Himalayan knowledge.
3.0 Internal assessment & External Assessment
SWOT ANALYSIS
3.1. Organization SWOT analysis: strengths, weakness, opportunity and threats of the
Organization
Strength of Dwarika Hotel
 Special touch of Nepali culture
24
Preservation, restoration and revival of centuries old carved wooden artefacts through sustainable
heritage conservation. Staying at the Dwarika’s Kathmandu is to experience true Nepali hospitality
and culture. The hotel upholds the Nepali values of respect and sincerity towards guests, combined
with the natural warmth of the Nepali people.
 Location
The Dwarika’s Hotel, Kathmandu, is located at about 2 km from Tribhuvan International Airport,
Kathmandu. Its neighborhood consists if the famous Hindu temple of Pashupatinath (an UNESCO
World Heritage site), which is about 15 minutes’ walk from the hotel. The hotel is also close to
Boudhanath Stupa, also an UNESCO World Heritage site, which is about 15 minutes’ drive from
the hotel. As the hotel is located close to the business center, banking and other services are easily
available with most of Nepal’s national banks having its branch / ATM outlets around the area.
 Goodwill
It has been established for a long time (66 years) and being the eldest and only home grown chain
of hotel in Nepal Dwarika has been able to gather a praise worthy goodwill and has created a
benchmark in the sector of Hotel Industry.
 Natural and cultural diversity
The hotel has won the UNESCO Asia Pacific Heritage Award for Culture Heritage Conservation
The hotel possesses one of the biggest private wood work collections of the world. The restoration
workshop that the late Dwarika Shrestha established in order to receive wood carvings as early as
1962 is still in operation although only used for significantly damaged pieces. Also, the hotel
embraces culture and it’s best from illusion of typical Newari Cuisine in their menu to lawns
designed and decorated in Nepali/Newari Culture theme.
 Knowledge of Customer Satisfaction
Serving since 1952 Dwarika has acquired enough knowledge about the tastes and preferences of
customers and has been serving according to their needs and requirements. Thus, the entire team
of Dwarika’s hotel has good knowledge about Customer Satisfaction.
 Early Expansion/ Strategic Location
Dwarika’s hotel has expanded its hotels and resorts in the early stage of development of the hotel
industry in Nepal and its Dwarika’s Resort in Dhulikhel. Thus, the group has a plus point as it has
already expanded its hotels in strategic locations nearby different heritage sites as well as the travel
site of Nepal where there is good flow of tourists.
25
Weakness of Dwarika Hotel

 Niche Domestic Market
Dwarika has somehow failed to go internationally. Nepal having a niche market in the hotel
industry has been unable to get as much of profits it could actually gain.
 Slow implementation
Despite being an early expansionary KGH group of hotels are somehow slow in implementation
of their expansionary plans and projects which leads them to fail till some extent
Opportunities of Dwarika Hotel

Heritage Executive Suite
It mostly focused on the people who love the things that are made with ancient woodcrafts and
design. The linen is organically produced and hand woven. Similarly, furniture is custom designed
and handmade at our own workshop. Many of the rooms face the charming courtyard.
Untapped potentialities
There are many other places where Dwarika group of hotels haven’t reached. There are many
places in Nepal like Jomsom, Pokhara etc. where Dwarika hotel can expand its business as it has
untapped potentialities.
26
Threats of Dwarika Hotel

High taxation by Government
Hospitality Industry here in Nepal is considered as a luxury and the tax allocated for the particular
is quite high which always stops one from having a handsome profit.
Increasing competition
The hotel industry has the greatest threat of completion as rise of other Star hotels and resorts leads
increase in competition. Also, now with the concept of “Home Stay” the hotel business are facing
problems.
Decreasing in international tourist arrivals
As we there was a campaigns like “Visit Nepal” held in 1998 and 2011 which help in the overflow
of tourist visit the Nepal. The arrival of tourist compared to 1998 and 2011 were in decreasing
state every year. Similarly due to earthquake in 2015, tourists level in Nepal has slowed down .
Unstable economy
Nepal is a developing country. Due fluctuation of interest in banks the economic state of , Nepal
is unstable. Unstable economy can be a threat as return on investment cannot be forecasted.
Dwarika’s faces the same threat to meet its expansion plans as group of hotels are built on own
land. Thus, the group requires loan to buy land for construction of their every new project.
Political turbulence
Political turbulence and unrest is a big threat to hotel industry in Nepal. Political instability like
strikes and bandha’s highly affect the flow of tourists in Nepal every year. Dwarika’s has always
been facing the threat of political turbulence like that it faced during the mass movement 2068.
3.1.2 PESTLE Analysis
Political
Government policies on Tourism Sector Policies defined by governments can really help the
business to know if it is in their favor or not. Policies help an organization to forecast its future
and work accordingly.
Taxation system
27
Taxation system is managed by government. Taxation system lets the organization know about
their expenses and if government is in favor of tourism then the government subsides their tax in
tourism sector.
Government grants and fiscal incentives
Government while making fiscal policies allocates certain amount of budget in tourism sector as
it has potentiality to earn foreign currency. They provide grants and incentives like tax subsidy,
road construction to rural areas (Tourist location).
Economic
Interest rates
Big hotel chain and hotels like Dwarika’s hotels need lot of investment to built up a hotel. Since it
needs lot of investment the group needs to take loan where the interest rates plays an important
role in PEST analysis.
Currency Exchange Rates
Foreign currency exchange rates change day to day. This play major role in tourism sector as most
of the tourist are international. So, we have to keep track of it.
Globalization
Globalization has changed the face of business. Today in sector like tourism we can keep every
update via internet from fooding, lodging to managing the whole trip. And we can also booking
the place and lodge and also get different kinds of special offers.
Social
Lifestyle developments Dwarika hotel has preserved old cultural heritage of Nepal. According to
change in society and preference people have started to develop with lifestyle. This is important
in business as we can use this to our advantage and use it in business. As in tourism sector this
development can be organic food, peaceful environment etc.
Demographic change
Demographic change is the change in preferences taste and living style of people. This
demographic change has to be kept in check to know their preference and keep the change in the
organization.
28
Technological
Product Technologies
Technology is changing with the time and is in growing state, every day new invention are being
made. These technologies should be adopted in business for growth of the business. In Dwarika’s
hotel, technology can be brought into practice by use of key card entry in rooms, VR tech to show
hotel rooms and environment, etc.
Communication Technologies
Internet has become a basic requirement of our life. Business can use and are using this technology
to market their products. In tourism sector, this is being practiced more often by marketing in social
site, using different tourism site etc. Dwarika hotel has its own website launched so tourists can
book rooms.
Legal
Unions Unions of workers are formed and there is formation of laws based on unions such as
working hours should not access more than 8 hours and minimum salary to be provided should be
Rs 8000.There is formation of union in Dwarika as well to protect the rights of employees working
here. (Manandhar, 2020)
4.0 Channel analysis and selection

The product or services are being distributed, highlight on the marketing channel, product
distribution channel and overall business model can be multiple sources such as trip advisor,
trivago, various other travel agencies, airlines, collaboration with other hotels, walk-in selling and
many more digital sites who are linked with this property.
Promotions
Mobile; mobile websites offering same day or last-minute discounts, Online Campaigns; internet
publication offers and packages, Special Event; packages and offers during holidays, festivals,
concerts
Negotiated Rates
Corporate Dynamic Rates, Corporate Flat Rates, Government, Crew
Groups
Leisure, Business, Conference / Banquet, Wedding, Events, Crew
29
Wholesale
FIT, Tour Operators, Wholesalers
Other
Complimentary, Barter, Walk-In, Overbooking (from another hotel), House Use, Time Share
Yes, the market segmentation adopted by Dwarika Hotel is profitable
5.0 Conclusion
Built up in 1972, the Dwarika's Hotel, following the way of thinking of protection, reclamation
and restoration, is a landmark to Nepal's notable, social and structural legacy. Preserving cut wood
was conceived in 1952 when late Mr. Dwarika Das Shrestha ran over certain craftsmen sawing off
an unpredictably cut wood for kindling. Seeing this annihilation of craftsmanship incited Mr.
Shrestha to safeguard the wooden pieces, to protect them. Following on his strides the Dwarika's
Hotel has been protecting and saving wooden perfect works of art and consolidating them into the
lodging's design from the day of its beginning. The wooden perfect works of art in show at the
lodging are from the thirteenth to eighteenth hundreds of years and every one of the pieces has its
own history.
REFERNCE
 The Dwarika's Hotel, Kathmandu, Nepal | Traveller Made. (2017). Retrieved 21 June
2020, from http://www.travellermade.com/hotel-partners-asia-pacific/the-dwarikas-hotel-
kathmandu-nepal
=Shrestha%20to%20rescue%20the%20wooden%20pieces%2C%20to%20preserve%20th
em
30
 Manandhar, S. (2020). Report of business environment of Dwarika hotel. Retrieved 21

June 2020, from https://www.slideshare.net/SangeetaManandhar/report-of-business-
environment-of-dwarika-hotel
 S Bajracharya.(2016). https://dwarikas.com.(2017). BusinessAnalysison KGH group of
hotels. Kathmandu:JunuHada.
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https://www.mbaskool.com/pestle-analysis/companies/17970-red-bull.html
 Basan. (2019, May 8). Visit Nepal 2020. Retrieved from nepalcome.com nepal for all:
https://nepalcome.com/blog/visit-nepal-2020/
 Press, A. (2020, March 30). Retrieved from KTLA 5:
https://ktla.com/news/coronavirus/red-bull-official-proposes-camp-to-expose-f1-drivers-
to-covid-19-for-immunity-building/
 Racoma, B. (2019, FEBRUARY 14). Retrieved from Day Translations:
https://www.daytranslations.com/blog/how-red-bull-adapts-to-new-markets/
 Schmitt, J. (n.d.). Retrieved from America's SBDC Michigan :
https://sbdcmichigan.org/restaurant-business-covid19/
 Jarvis, N., Lindh, A., & Jones, P. (1998). An Investigation of the key criteria affecting the
adoption of yield management in UK hotels. Progress In Tourism And Hospitality
Research
 Net, H. (2020). How (Airlines’) Yield Management is the Answer to Your Revenue
Management Problems | By Jean Francois Mourier – Hospitality Net. Retrieved 27 May
2020, from https://www.hospitalitynet.org/opinion/4079447.html
 Frankenfield, J. (2019, june 26). investopedia. Retrieved from client centric:
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Business Environment : https://www.managementstudyhq.com/external-factors-affect-
business-environment.html
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https://www.4hoteliers.com/features/article/1087
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https://www.tandfonline.com/
32

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HH302 Revenue Management Home-based Assessment May-Aug 2020

ASSIGNMENT COVER PAGE

No. Student’s Name Student’s ID

Lecturer Name : Mr. Bikrant Shrestha.

Programme Title : Bachelor (Hons) in Hospitality Management

Subject Code & Title : HE302n -- Revenue Management

Assignment Topic : Mid-Term Assessment

Submission Date : 21-06-2020

1) 1 day late from the date of submission - 25% will be deducted.

2 days late from the date of submission - 50% will be deducted.

used, it must be properly acknowledged and referenced.

ASSIGNMENT 1: CASE STUDY AND REFLECTION [30 MARKS]

industry divisions, for example, recreational trekking, climbing, mountaineering, wilderness

i. STREAMLINE TAKEOUT AND DELIVERY SERVICES

ii. KEEP COMMUNICATION OPEN

iii. CHANGE UP YOUR MENU

iv. TAKE THAT ORDER!

The opportunities can turned into strength if iims college:

 Create Your Self-Portrait:

Primary revenue received is $500 package offered by a restaurant

ASSIGNMENT 3: INTERNET RESEARCH

1.2 Idea Generation behind the startup

1.3 Type of Business, Partnership

1.4 Nature of Business

2.0 Customer Knowledge, Market segmentation and Selection

2.1 How company is identifying and analysing their customer

2.2 How Customer Centric Approach is practiced in the organization.

3.0 Internal assessment & External Assessment

 Special touch of Nepali culture

Weakness of Dwarika Hotel

Opportunities of Dwarika Hotel

Threats of Dwarika Hotel

3.1.2 PESTLE Analysis

4.0 Channel analysis and selection

 Manandhar, S. (2020). Report of business environment of Dwarika hotel. Retrieved 21

 Martin, D. (2006, December 28). 4hoteliers. Retrieved from Yeild Managemnet :

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