{"id":22499,"date":"2020-04-08T08:40:53","date_gmt":"2020-04-08T08:40:53","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/constrained-demand\/"},"modified":"2024-12-23T09:22:07","modified_gmt":"2024-12-23T09:22:07","slug":"constrained-demand","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/constrained-demand","title":{"rendered":"Constrained Demand"},"content":{"rendered":"

What is the meaning \/ definition of Constrained demand in the hospitality industry<\/a>?<\/p>\n

The term constrained demand refers to demand<\/a> being severely restricted in activity. It is used in the hospitality industry \u2013 in revenue management \u2013 when referring to demand forecasts.<\/p>\n

To understand constrained demand you must first understand unconstrained demand<\/a>. Unconstrained demand is your hotels total demand for a particular date irrespective of your capacity. Hotels should identify when unconstrained demand is above the capacity of the hotel<\/a>. This is an important part of your hotel revenue management strategy.<\/p>\n

Constrained demand, is the demand you get when adapting factors such as price. By increases in price, you are changing the demand, in a way constraining it, thereby allowing less customers to book your hotel.<\/p>\n

The concept of \u201cUnconstrained Demand<\/a>\u201d is sometimes applied when a limit of a resource (hotel size) reduces the potential revenue from e.g. earning potential of the hotel restaurant.<\/p>\n

See also:<\/strong><\/p>\n