Today’s revenue managers look more like data scientists than anything else — and if you aren't keeping up with the latest best practices and tools, you may be missing out on the best way to maximise your hotel’s bottom line.
Check out a preview of what's in The Ultimate Guide to Revenue Management eBook below and download the full eBook to learn everything you need to know from market segmentation to hotel revenue management tools.
- What is hotel revenue management?
- Steps to set up the Business intelligence process
- Market segmentation and analysis
- Hotel demand forecasting
- Inventory management
- Hotel revenue management technology
What is hotel revenue management?
At its most basic, hotel revenue management is simply selling the right room, to the right customer, at the right time, at the right price, through the right channel.
However, a more advanced definition of revenue management, and perhaps more useful one for today’s hoteliers, is the application of disciplined analytics that predict consumer behaviour at the micro-market levels and optimise product availability, leveraging price elasticity to maximise revenue growth and, thereby, profit.
Before we dive into the nuts and bolts of modern revenue management, let’s first take a look at the big picture and understand the revenue management cycle.
The revenue management cycle
The cyclical process of revenue management begins and ends with data. Access to accurate and relevant data is the driving force behind every decision a revenue manager makes and every step of the revenue management cycle (visualised below) is dependent on thoughtful data analysis.
However, the collection and analysis of data are simply the first steps of this process. The revenue manager’s job is to make concrete decisions that increase revenue for the hotel. In the following chapters, we will dive deep into each step and learn about the most important concepts, strategies, and tools used in revenue management.