Integrated Revenue Strategy for the Park Hotel: A Data-Driven Approach to Strategy Development and Evaluation

Abstract

A robust revenue strategy is integral to the long-term sustainability and growth of any hospitality firm. Developing and effectively executing a revenue strategy that drives success is not the sole responsibility of one individual. Instead, it requires a collective effort from all functions within the hotel to work together towards this common goal. It is also critical for a revenue strategy to deliver value for the firm’s stakeholders, which can be achieved only through an understanding of stakeholder needs and expectations. This case study is designed to provide students with a holistic perspective on the development and evaluation of a revenue strategy. The case study is comprised of two parts. In Part 1: Developing a Revenue Strategy, Sam, the new general manager of the Park Hotel, is tasked with developing an integrated revenue strategy for the property. The property is a limited-service 60-room property in rural western United States and neighbors a National Park. Students are asked to assume the role of Sam, then evaluate current performance using qualitative and quantitative (STAR report) data, complete a comprehensive value assessment for the property, and then develop an integrated revenue strategy that encompasses key functions within the hotel. In Part 2: Evaluating revenue strategy success, we fast forward a year to when Sam is evaluating the success of her proposed integrated revenue strategy. Students are presented with the revenue strategy that Sam developed and the strategy outcomes. Then, they are asked to evaluate the success of Sam's integrated revenue strategy. Part 1 of the case study is divided into three sections, each with its own activities and/or discussion questions. Part 1 is divided up in this manner to give the instructor flexibility in terms of how they use the case study to support student learning. The instructor can either work through each individual section as relevant material is covered during a course, or the instructor can have students complete all three sections together at the end of a course as part of a comprehensive application of all of the concepts and methodologies that they have learned throughout the course. Once students have completed all of Part 1 of the case study, they will progress to Part 2. The reader should note that, due to the chronological sequence of events in this case study, Part 2 will only be presented to students once they have finished crafting their revenue strategy in Part 1.