Please wait while the transcript is being prepared...
0:00
Very warm welcome to a lecture
on revenue management.
And within revenue management,
it's about capacity management.
0:11
Let me introduce myself.
My name is Associate
Professor Dr. Detlev Remy.
I have a German background.
I am working in Singapore
for almost 7 years
as a professor for
revenue management.
Before joining academia
about 20 years ago,
I worked in the
hospitality industry,
up to the GM level.
I worked in consultancy.
I still have my consultancy
in the domain of marketing
and revenue optimization.
0:40
There are two strategic
levers in revenue management,
capacity management and pricing.
Both are working together.
Capacity, we are constrained
in the hotel industry.
Also, in the
hospitality industry,
it means attractions,
MICE, F&B, etc.
We are constrained
in our capacity
when we cannot scale
up in the short term,
and we have, also,
to utilize it best.
The strategy helping us
to achieve this goal
has been via
manipulation of prices.
However, we focus in this
lecture on capacity management.
1:22
Capacity is given.
Capacity is, in most cases in
our industry, constrained,
but we have to have a strategy on
how to utilize capacity at its best,
especially as if
you don't do so,
you'll create an impact on
the customer experience,
positive and most
times more negative.
On employee satisfaction,
that they're overworked or
underworked, for example.
In our profitability,
if we don't sell all
our units of inventory.
And of course, also, in terms
of long-term sustainability
of the resources in
the business itself.
