Revenue management is a term that’s often thrown around the hotel industry, but what is it, exactly? Some believe that revenue management is all about ensuring a capacity of 80 percent or more at any given time, regardless of what it takes, but does this really equal good revenue management? Perhaps not. Instead, revenue management is about understanding past trends, having a good overview of the current market, sensibly forecasting the future, and addressing rates based upon these aspects combined. It’s about knowing what people are willing to pay, rather than what they want to pay, and not succumbing to cheaper rates for fear of not meeting targets. Overall, revenue management could be described as ‘the art of turning business away’.
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