MIS Case Study 2.docx - BACS2013 MANAGEMENT INFORMATION...

This preview shows page 1 - 2 out of 4 pages.

BACS2013 MANAGEMENT INFORMATION SYSTEM Tutorial 5 Case Study Question Case Study 2: Marriott's New Revenue Management System Yields Success Marriott International, Inc., is a US$9 billion (about RM31.5 billion) company operating 2.600 hotel properties worldwide. Like other hotels, Marriott must keep its rooms filled with guests paying the highest rates that can be charged in order to maximize revenue. Figuring out how much to charge for each room used to be a major challenge. On high- demand nights, Marriott has to be careful not to sell out early at low rates. On Sundays and slower days, it needs enough rooms offering low rates to attract customers but not so many that it would be giving away rooms that could command higher prices from someone else Marriott had developed two revenue management systems . A demand forecasting system (DFS) served the chain's full-service hotels and a revenue management system (RMS) backed select-service or extended-stay properties , such as the Courtyard hotels. However, running two separate revenue management systems kept the hotel chain from easily analyzing US$62 million (about RM217 billion) reservations annually at all of its properties and they were expensive to operate. In 2001, Marriott began building a new enterprise-wide revenue management system called One Yield that is now used by 1,700 of the company's 2,600 properties. From the beginning, the leaders of the project linked the business value of One Yield with the company's goals of profitability, preference and growth. They explained the technical aspects of the system to the business audience in terms that the audience could understand and value. To obtain information requirement and support for the new system, the development team consulted the future users and the buyers of One Yield (individual Marriott properties pay for their information technology installations). The team maintained close communication with the field through Marriott's director of inventory planning , Russell Wesley and was able to exchange feedback with users and general managers (GMs). GMs could ask questions about cost and impact on staff. Users could ask questions about new features or old ones that weren't going to be carried over to the new system. Wesley used monthly press releases to provide updates on project status, pilot tests, training tools and costs. Users identified two important new features to be incorporated into One Yield: an override button and what the users call the "Monday morning quarterback". The override feature enables the user to reject One Yield's rate recommendations before they are sent to the central reservations system. In cases where the local revenue manager has information that One Yield does not, such as

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture