Executive Summary The report entails an analysis of revenue management with regard to firms in the hotel industry. A background study analyzing the performance of the hospitality industry on a global scale is conducted. This enables in the identification of how the hospitality industry is performing. Specific reference is given to Australia. The main objective of the report is to analyze the challenges that small enterprises in the hotel industry undergo with regard to revenue management. In order to underscore the challenge in a real environment, a case study of Hotel 59 Café which is located in Sydney is conducted. The report entails analysis of customer traffic in Hotel 59 Café and identification of the most active business hours. This aids in illustrating the correlation between customer relationship and revenue management. The various types of food products that the firm deals with are outlined. In its operation, the firm deals with a wide range of food products due to the multicultural nature Sydney. However, traditional foods are the most prominent to the customers. The revenue management strategy incorporated by the firm in its quest to maximize revenue is analyzed. Some of the challenges identified to be the major factors limiting implementation of revenue management in small firms include lack of customer reservation system to enable the firm link effectively with the market. In addition, complexity of the revenue management tools is also cited as a major hindrance to with regard to implementation of revenue management by small firms such as Hotel 59 Café. Finally a conclusion and a set of recommendations are given. Introduction Background to the study Over the past few years, hospitality industry has witnessed a rampant growth across the globe. One of major factors behind the rampant growth is its lucrative nature (Pizam 65). As a result, the industry has become one of the major contributors of the global economy. This arises from the fact that the industry plays a significant role with regard to job creation. Globally, it is estimated that there are approximately 8 million restaurants and 300,000 hotels. In addition, the industry has employed approximately 60 million individuals. Its annual contribution to the global economy is estimated to be US $ 950 billion (James1).In the 21 st century, hospitality industry in Australia is amongst the industries which have witnessed a rapid transformation. This has resulted from an increment in the number of Australians who prefer to take their meals out regularly leading to an upsurge in demand. As a result, entrepreneurs have perceived an opportunity within the industry. This has culminated into an increase in the number of cafes and restaurants being established in different parts of the country. One of these cafes is Hotel 59 Café. According to James (7), Australian hospitality industry is ranted as the 2 nd largest in the world. Due to its rampant growth, the industry has resulted into creation of approximately 1,200,000 jobs either directly or indirectly in various sectors. During the period ranging from 2003 and 2010, it was estimated that the industry would create additional 325,000 jobs as a result of increase in tourism ex