{"id":22724,"date":"2020-04-14T08:47:43","date_gmt":"2020-04-14T08:47:43","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/total-revenue-management\/"},"modified":"2025-11-20T15:03:23","modified_gmt":"2025-11-20T15:03:23","slug":"total-revenue-management","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/total-revenue-management","title":{"rendered":"Total Revenue Management"},"content":{"rendered":"

What is the meaning \/ definition of Total Revenue Management in the hospitality industry<\/a>?<\/p>\n

Total Revenue Management is a much-discussed concept in hospitality<\/a>, but in reality it has produced a great deal of confusion. Put simply, it is the revenue management of all revenue sources in a hotel<\/a>. From your RevPAR<\/a> and GOPPAR<\/a> to thehotel restaurant, and from the bar, spa and gym to activities and excursions, it encompasses every single hotel income stream.<\/p>\n

This strategy implies that revenue management is applied to every department of a hotel. For example, the F&B, function spaces, SPA, golf, etc. The goal is to optimise profits of each department, by maximising the revenue and the costs associated.<\/p>\n

It is the future of revenue management. Some changes have to be done then, according to the application of this strategy. First, the revenue manager needs to have a central position in the organisation. Then, all department managers need to be trained about revenue management.
\nNew measurement tools should be used to measure properly, like RevPASH<\/a> (Revenue Per Available Seat Hour) for F&B, RevPATH<\/a> (Revenue Per Available Treatment Hour<\/a>) for the SPA, etc.<\/p>\n

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