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REVPAR GURU Debunks Some Common Myths About Revenue Management Systems

Some interesting insights





Myth 1 - Day-to-day revenue management functions, like pricing changes, are so sensitive they must be handled by revenue managers themselves.

FALSE - This is a popular misconception; the truth, however, is that the best pricing strategy is one that can react quickly, and often, to subtle market changes, in order to present the best rate to a potential guest at the right time.

Myth 3- Average daily rate (ADR) and occupancy percentage are the best metrics for evaluating the performance of revenue managers or revenue management systems.

FALSE - This was the prevailing wisdom a couple of decades ago, and it persists in some places today. Clearly, these two figures remain important to hotels, but the best measure of a revenue manager's (or an RMS's) efficiency is revenue per available room, or RevPAR.


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