Rethinking Revenue Management: A Collection of Articles

By Jean Francois Mourier, CEO of REVPAR GURU

For any hotelier, there is no doubt revenue management is an essential component to running a successful lodging enterprise. Though implementing a revenue management strategy may sound like a simple enough task, revenue management today requires much more than setting a price and hoping for the best. Today, it reflects a proactive approach to generating profits through the sale of rooms, alleviating some of the unavoidable complications that can arise from the highly perishable nature of hotels' core products.




The astounding take-off of Internet sales over the last few years—which have had much to do with the availability of portable wireless devices—has challenged hotel revenue managers with constantly-changing information and market conditions,  countless sales channels and more competitors to keep track of. In order to be successful, today’s revenue manager must be much more hands-on, identifying customer motivations and buying habits, foreseeing consumer decisions and influencing those decisions by the way they manage their rates.

Though a complex practice that incorporates many different disciplines and stretches across many distinct departments within a hotel, there is no doubt that revenue management has revolutionized the hotel industry. Today’s strategies have taken risky practices of static rack-rate pricing out of the picture and developed stronger relationships between crucial hotel operating departments. Once its underlying concepts have been adopted and understood, hoteliers can implement an effective revenue management strategy that can help increase occupancy and profits. In fact, running a hotel without it would be returning to the antiquated tools of yesteryear.

So what are the hallmarks of the new hotel revenue management?  What works?  What doesn’t?  What’s the revenue manager’s new role in today’s industry?

To find out the answers to these questions and more, download REVPAR GURU’s whitepaper called “Rethinking Revenue Management: A Collection of Articles” here