It is making data-driven decisions to sell the right room, to the right customer, at the right time and at the right price.
In a hotel, two seemingly identical days can behave completely differently.
Demand changes.Competition changes.The pace of bookings changes.Events and seasonality have an influence.And so the price should change too.
The indicators Revenue Management looks at
A good Revenue Management strategy looks at indicators such as:
- Occupancy: what percentage of the hotel is sold.
- ADR: the average price at which rooms are being sold.
- RevPAR: the revenue generated by each available room.
- Pick-up: the pace at which new bookings come in.
- Pace: how demand is evolving compared with other periods.
- Competition: market availability and prices.
The goal is not simply a full hotel
A hotel can have 100% occupancy and still have left money on the table if it sold too cheaply.
Revenue Management is precisely about finding the balance between occupancy, price and profitability.
Because selling more does not always mean earning more.
Selling better, yes.