Revenue Management Glossary

Incremental Demand

Definition

Incremental Demand refers to the additional booking requests expected to occur between the current date and the arrival date. It represents the portion of demand that has not yet materialized, but is likely to book based on historical patterns and current trends.

How to use it

Revenue managers use Incremental Demand to: Estimate total expected occupancy, make pricing decisions based on anticipated pickup, apply appropriate restrictions (e.g., minimum stays) and adjust availability or marketing strategies in advance of arrival.

Formula

Incremental Demand = Expected Total Demand – Current On-the-Books (OTB)

Related Terms

On-the-Books (OTB), Pickup, Forecasting, Booking Curve, Unconstrained Demand
“Incremental demand gives revenue managers visibility into what’s still to come—helping them make smarter, more profitable decisions before guests even book.”

Tim Boersma

Tim Boersma
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