To apply hotel revenue management consulting in a hotel there are a few basic principles to apply. What are these basic requirements to be able to successfully yield and optimize revenue and profit of a hotel as a revenue manager or hotelier?
Here is an overview of the basic elements and ingredients you need to apply hotel revenue management effectively:
  • Market Segmentation
  • Historical Demand and Booking Patterns
  • Demand Forecast and Displacement Analysis
  • Pricing and Inventory Management
  • Overbooking
  • Information Systems
In the following section of this revenue management book or manual will go into more detail on these topics or concepts.

revman_ingredients

With regard to overbooking, it is simply necessary to oversell to reach 100% occupancy, without walking away clients. If there is a risk of walking away, the costs should be taken into account in the evaluation of the overselling (extra rooms revenue sold versus the costs of walking away or out-booking)

Maximize Your Hotel Revenue

Uncover the hidden revenue potential of your hotel or resort.