The curious case of Hotel King’s Cross
Publication date: 13 February 2024
Abstract
Learning outcomes
The learning outcomes of this study are to recall the fundamental concept of revenue management in the hotel industry (remembering); explain the various performance measures used to evaluate room revenue in hotels (understanding); use revenue management strategies to improve room revenue in hotel operations (applying); and examine and evaluate the optimal solution for revenue enhancement, considering factors such as capacity management, duration control and differential pricing (analyzing).
Case overview/synopsis
This case study delves into the challenges faced by Hotel King’s Cross, a business hotel located in Pune, Maharashtra, in the year 2022. A week before Christmas Eve, Soham Dande, the hotel’s revenue manager, sought a meeting with Rohan Chopra, the director of sales and marketing, to discuss “revenue optimization for the hotel.”
During their meeting, Dande mentioned that the hotel had fallen behind its budgeted room sales targets for 2022 across various metrics, such as room booking nights, occupancy percentage, average room rate and revenue per available room. Furthermore, the hotel was trailing behind its competitors. The situation was compounded by the management’s decision to raise the targets for 2023 by 5%–7%, factoring in upcoming events, competitive performance and pandemic-related losses over the past two years. Chopra faced the dilemma of formulating an action plan to achieve the ambitious 2023 targets and establish Hotel King’s Cross as a market leader.
Complexity academic level
Students undertaking executive development programs and graduate-level courses in non-profit hospitality and tourism management, as well as revenue management courses in the executive MBA, management development and graduate MBA programs, may all benefit from this case study.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS12: Tourism and hospitality.
Keywords
Acknowledgements
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Satpute, P. and Bapat, G.S. (2024), "The curious case of Hotel King’s Cross", , Vol. 14 No. 1. https://doi.org/10.1108/EEMCS-05-2023-0188
Publisher
:Emerald Publishing Limited
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