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Vogue Hotel’s Revenue Management Plan in Switzerland Report

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Updated: Jun 11th, 2022

Executive Summary

The author intends to start and manage The Vogue Hotel in Switzerland. To this end, the hotel revenue management plan will help in efficient running and management of the business, leading to profitability. Switzerland, currently the global center for the best schools in hospitality management, will provide a great avenue for the business to thrive. The top three best hotels in the world are based in this country. As such, there is a favorable environment for the business in the long run. The industry data reveals that a four-star hotel would be the best for the market. The revenue management plan will look at the principles of revenue and yield management of the business.

Keywords: revenue management, hospitality, The Vogue Hotel


A hotel revenue management plan is a variable pricing strategy used in the hospitality industry. It is used to counter variable changes that occur in the market. Its main aim is to offer the right room to the right customer with consideration to pricing at the prevailing market conditions. Consequently, effectiveness is achieved as future prices are already adjusted for the projected demand and trends. The rise of the internet in the 21st century has seen the industry face new dimensions in the field. E-commerce has led to improved customer satisfaction and pricing. However, it has also resulted in increased competition in the industry (Rouse, Maguire & Harrison, 2011).

In this paper, the author looks at the revenue management plan for The Vogue Hotel, Switzerland. It is a four-star establishment located in Bern, Switzerland.

The Vogue Hotel, Switzerland: A Revenue Management Plan


Various strategies are to be considered for the pricing of the rooms based on the prevailing market environment. To initially gain market share, low pricing will be set to enhance competitiveness. The price will later be adjusted to the premium level, which will vary based on the quality offered. Luxury will be the major determinant of the prices. The economy of the country should also be taken into consideration (Ozer & Phillips, 2012). Currently, the average index for four-star hotel prices is CHF 116.01. It will be paramount to have prices within that range. The price is projected to rise over the coming few weeks as summer nears. Demand and urgency of the customer will be the driving factors. A shorter accommodation period will attract high prices.


The hotel management will have to look at the best way to handle the capacity as per the prevailing market conditions. In periods of high demand, The Vogue is bound to experience an increase in bookings. However, cancellations are also likely to rise. It will prompt the management to overbook to hedge out the risk. The aim is to maximize revenue. In times of low demand, lower pricing could be offered in an effort to be competitive in the market. The availability of number of rooms available in a given period should be assessed on a weekly basis to come up with relevant market prices for them (Rouse et al., 2011).


Given the rapidly changing dynamics in the market, the management of The Vogue, Switzerland, will have to apply a variety of marketing strategies. Tailor-made marketing will be used to maximize the use of resources. The strategy will also enhance its impact on the potential clients at the given time. Price promotions with most valuable market intermediaries will lead to high sales volume. It will also lead to a decrease in prices, leading to increased demand. The internet and telephone services will be used to acquire long-term commitments (Mudie, Pirrie & Mudie, 2006). Tradeshows in the industry would also be a good avenue to market the business. It will help The Vogue to network and socialize with potential partners. The sales will also need training on their roles with great emphasis on e-commerce. Communication between the staff and customers will need to be assessed and evaluated on a daily basis to enhance the experience of the clients, leading to high sales and referrals.


The most effective method used in the market will be put into consideration first. Information may be obtained from the competitors and market data (Swish tourism, 2015). The channel to be considered would be based on the market segment. It will take into consideration the nature of the market and expected behavioral characteristics of the potential customer (Mudie et al., 2006). Resources will be properly utilized as a result of using the most relevant channels. As such, The Vogue will cut down on costs, leading to increased revenue as a result of the high sales volume. For instance, e-commerce will act as an avenue to reach out to customers indirectly.

The Revenue Management Process

Data collection

Relevant market data collection will be required to give The Vogue a guideline on how to carry out business activities. Switzerland is governed by the European Union rules. The legislations provide an enabling environment for business practices to small and new firms in the industry. Data from 2015 shows significant potential for the business under the hotel category with respect to the four star segment (Swiss tourism, 2015). The gross occupancy rate was highest in the market at 51.7%. The figure was higher than the weighted average of 44.8%. It signifies a strong demand for the product. The average daily rate stood at 48.0%, the highest in the segment. However, this was lower than the weighted average of 35.7%. The revenue per available room was at CHF 133.04, which was higher than the weighted average of CHF 116.01 (Swiss tourism, 2015). The prevailing conditions lead to a high rate of return on investment. The data collected will allow the management to forecast and develop strategies to mitigate the ever changing market conditions.


The management at The Vogue, Switzerland, will need to know the dynamics of the market the company is operating in. Products should be priced and designed to meet the demand of the different customers (Mudie et al., 2006). Trends in the behavioral traits of the consumers should be closely monitored. The assessment will enable the business to remain competitive while innovating new ways to meet the consumers’ ever changing needs. Sub-segmentations may also be required to evaluate the interrelation between the main product and its aids. The approach will lead to enhanced customer satisfaction and increased sales volume.


Forecasting entails the projection of the expected outcomes and their effects on the business (Montano, 2004). It involves both the micro and macro factors that affect the business. At the micro level, the management will budget for the projected demand to ensure flexibility and cost saving, leading to increased profitability. At the macro level, the market share of the business will indicate the activities to be considered more during a given period (Ozer & Phillips, 2012). For a low market share, aggressive advertising will be required compared to the already established businesses (Watada, Xu & Wu, 2014). At the same time, the projected market trend will have to be taken into consideration. If demand is expected to drop, competitive pricing should be put in place prior to the period so as to attract customers earlier than the competitors. The Vogue should also adopt cost saving measures, such as laying off workers (Ozer & Phillips, 2012).


Optimization would involve the management coming up with the best factors of production at a given period with consideration to the customer. It not only leads to maximization of profits, but also minimization of the cost of production. It will help the management to set the best market prices for the different customers under the prevailing circumstances. Statistical tools will be incorporated to gain these values. Linear programming and regression analysis of the data available will provide relevant information that will help the management to make good business decisions (Watada et al., 2014).

Dynamic re-evaluation

With the ever changing market conditions, management will need to adapt to these changes. It will ensure continuity of the business alongside profitability. Adjustments on price and the service provided will need to be constantly reevaluated so as to maximize revenue (Montano, 2004). With an effective revenue management system, the firm will gain more market share by attracting corporate clients. Based on the forecast, offers could be made to them on the best available rate. It is a trend that is taking over the traditional fixed contracted rate. The rates have a higher risk as they may pose losses to the business of unrealized gains during periods of high demand (Talluri & Ryzin, 2004).


The Vogue is a four star hotel that is coming up in Switzerland. The revenue management plan above would help the business to establish itself in the competitive market. It will also help in the management of resources needed to expand the business.


Montano, B. (2004). Innovations of knowledge management. Hershey, PA: IRM Press.

Mudie, P., Pirrie, A., & Mudie, P. (2006). Services marketing management. Amsterdam: Elsevier/Butterworth-Heinemann.

Ozer, O., & Phillips, R. (2012). The Oxford handbook of pricing management. Oxford: Oxford University Press.

Rouse, P., Maguire, W., & Harrison, J. (2011). Revenue management in service organizations. New York: Business Expert Press.

Talluri, K., & Van Ryzin, G. (2004). The theory and practice of revenue management. Boston, Mass.: Kluwer Academic Publishers.

Watada, J., Xu, B., & Wu, B. (2014). Innovative management in information and production. New York: Springer.

Swiss tourism in figures 2014: Structure and industry data. (2015). Web.

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