Many hoteliers and revenue managers don't know that revenue management in hotels actually developed from the successes of airlines yield management practices.
I know what you're thinking: 'my hotel doesn't fly, so I can't use the same processes that an airline does. It just doesn¹t make good business sense'
Actually, it does.
Hotels have many of the same issues and challenges that the airlines do: ³perishable inventory, customers booking in advance, lower cost competition and wide swings with regard to balancing supply and demand.[i]² Hotels use the same websites and reservations channels to sell their rooms, as airlines do to sell their seats.
Hotels have to manage rates and occupancy, just like airlines do. Even the factors that are examined in a successful yield/revenue management practice are the same:
1 Number of seats/rooms available?
2 How much time is left to sell the seat/room?
3 What are your competitors charging for the same seat/room?