Revenue Management Glossary

Capacity Control

Definition

Capacity Controls—also known as Stay Controls—are a set of booking restrictions used to manage demand and optimize profitability when room supply is limited. These controls help filter which bookings are accepted based on predefined criteria such as length of stay, arrival dates, and booking pace. These tools are essential during high-demand periods to ensure that rooms are allocated to the most profitable reservations.

How to use it

In revenue management, Capacity Controls are applied to shape demand and protect revenue. These controls are typically managed through your Property Management System (PMS) or Channel Manager.

Formula

There isn’t a traditional formula for Capacity Controls, but their application is based on: Occupancy forecasts, booking pace, revenue per available room (RevPAR) goals and event calendars and demand drivers. Strategic use of these controls maximizes room value, especially during compression periods.

Related Terms

Revenue Management, Booking Restrictions, Booking Curve Forecast, Minimum Stay Requirement, Closed to Arrival (CTA), Overbooking Strategy
“Capacity Controls empower hoteliers to manage demand intelligently—ensuring that every room is sold to the right guest, at the right time, for the right price.”

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