Introduction
With the substantial growth in hotel capacity over the last decade, finding and retaining a valuable clientele continues to be a major challenge in the hospitality industry. To remain competitive, the practice of revenue management is of strategic and tactical importance in improving hotel revenues and profitability.
We’ve come a long way from the old-style “heads-in-beds” mentality of the early days where occupancy was the ultimate goal and rates were established based upon immediate need, usually with little relationship to the marketplace.
Ever since American Airlines started the transformation to revenue management in1985, hoteliers began to learn and use revenue management to increase RevPar. Since then, the hotel industry has done its best to change its marketing efforts from simply selling rooms to actually managing revenue through the principles of supply and demand.
Download our Hotel Revenue Management brochure