Abstract:
Revenue management is a sophisticated form of supply and demand management. Its
primary focus is managing customer demand through the use of variable pricing and
capacity management to maximize profitability. Most restaurant owners and managers are
trying to increase their revenue. But they used the wrong determinants to measure the
revenue. This research intended to identify the determinants of Revenue per Available
Seat Hour (RevPASH) in registered tourist restaurants in the Colombo district. RevPASH
is a performance metric in the restaurant industry. Further, this study examined the
relationship between RevPASH and its determinants in a registered tourist restaurant in
Colombo district. To achieve these objectives, the study was conducted as a quantitative
study and used a questionnaire as a data collecting technique. A total of 75 SLTDA
registered tourist restaurants in Colombo district were selected as the study sample.
Descriptive statistics and correlation analysis were used to analyse the data with the
support of the SPSS 22 version. Determinants of RevPASH were identified using
descriptive statistics. According to the results of the correlation analysis, a weak positive
relationship was indicated between the total number of employees in the restaurant,
services & facilities of restaurant, the centrality of the restaurant corresponding to the
location with the RevPASH. Further, there was no relationship between the total number
of covers in restaurant, restaurant-grade, restaurant establishment year, restaurant
refurbishment, and distance to the main road from the restaurant with RevPASH in
registered tourist restaurants in Colombo district. According to the results, restaurant
owners and managers in registered tourist restaurants in Colombo district should pay
more attention to the total number of employees in restaurant, services & facilities of
restaurant and centrality of the restaurant corresponding to the location to increase the
RevPASH of their restaurant to enhance the revenue.
Keywords: Revenue management, Restaurant industry, RevPASH, Performance metric,
Determinants
