Hotel Revenue Management – Simplified Introduction

This video posted by SiteMinder

Hotel revenue management is the strategic distribution and pricing tactics used to sell perishable room inventory to the right guests at the right time in order to boost revenue growth. Other products such as hotel amenities and food and beverage offerings will also form part of the strategy.

Revenue management revolves around measurement of what customers from different audience segments are willing to pay. This can only be done by measuring and monitoring the supply and demand of your hotel rooms. It involves the use of data and analytics to help you keep track of supply and demand so you make predictions on consumer behaviour.

This then allows you to make informed decisions on what accommodation to promote to the right client, at the right time, with appropriate pricing through the most suitable distribution channel.

Now, more than ever, revenue management is the cornerstone of running a successful and profitable hotel. The growth of data that’s now readily available as well as the ways to track and analyse it provides a wealth of new opportunities for your business to turn a profit.

The most successful hoteliers are savvy operators who continually look for ways to learn and improve the way they do things, gaining an edge over the competition.