How does a revenue management system work?
A revenue management system analyzes a combination of competitor rates, historical rates, market dynamics, and inventory levels to predict demand and provide rate recommendations. A good revenue management system will automate the entire process and generate rates that can maximize revenue and profitability.
What are the tools of revenue management?
A revenue manager leverages tools like revenue management systems and rate shoppers to analyze competitor pricing and set a rate strategy that will maximize revenue. In addition, a revenue manager might study market trends in STR reports, analyze data in a business intelligence tool, and use promotional tools in their booking engine, PMS, or channel manager.
What is the main goal of revenue management?
The main goal of revenue management in hotels is to fill the right room at the right time for the right price. Revenue managers want to maximize the rate potential of each room night, but without setting prices too high that nobody will book.
What is the role of a revenue manager?
The revenue manager’s job is to manage pricing strategies to maximize revenue and profit. In a hotel, the revenue manager sets rates, deploys promotions, analyzes competitor pricing, and decides when to open or close certain rate plans or promotions. A revenue manager usually works closely with the sales and marketing departments.
What are the benefits of revenue management?
Revenue management enables the business to stay competitive in the marketplace by adapting prices to changes in supply and demand. Revenue management strategies ensure a business isn’t leaving money on the table by charging rates that are too low, nor setting prices too high that nobody will purchase.
