The key to successful hotel revenue management is control, with control over bookings being an important determinant in achieving full occupancy for as many weeks as possible across a complete 12-month period, and into the future. At a hotel, a reservation or booking control is known as a Restriction.
Let’s look now a just some of the Restriction options open to managers of smaller, independent hotels, and to senior management teams who are perhaps responsible for successfully managing hundreds of hotels of different types and sizes across a global chain:
- MinLOS, minimum length of stay
- Max LOS, maximum length of stay
- MinLOS / Max LOS combined
- Stay Through Restriction
Any form of Restriction that a hotel opts for should be implemented with care; after all, building a regular customer-base and fostering customer loyalty is essential to any hotel seeking to maximise profits year on year. So, as with many other aspects of operating within the hospitality industry, it is important to strike a fine balance between maintaining control but without alienating guests old and new!