Revenue Management Woordenlijst

Revenue Management

Definition

Revenue management is the practice of analyzing and predicting consumer demand to optimise room inventory and price rooms to maximise bookings and revenue growth. Strategic revenue management is what makes it possible for hotels to achieve consistent profitability, no matter how the market changes.

How to use it

Revenue management involves analyzing vast amounts of data to forecast demand, segment customers and determine the optimal price for each room, based on real-time market conditions, competitor pricing, guest booking preferences, among other factors. By leveraging the data analytics and market insights provided by a revenue management system (RMS), hotels can automate the process of anticipating market changes, automatically adjusting pricing and inventory across all online channels in real-time, to maximise occupancy rates without compromising ADR.

Formula

N/A

Related Terms

Revenue Management System, RMS, ADR, RevPAR, Occupancy
“All hotels – no matter their size, type or location – should be setting their pricing based on strategic revenue management practices, using a sophisticated, automated pricing solution to support their efforts. This is the only way for hotels to keep up with the competition in our online-first travel market. Trust me… your bottom line will thank you for it!”

José Miranda

Jose Miranda
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