Basic revenue management guidelines for hotel, hostel, apartments & meeting rooms.
By John Kennedy
Revenue Management (RM)
This guide will explain what RM is about, how to create a set of RM rules and how to focus on a rate and occupancy strategy with examples on how to use RM.
To succeed with RM you need to know what you have sold historically, the inventory you have available, the price you want to sell it at, an allocation of rooms to be sold to meet demand, have a demand forecast, decided the mix of business you want and then have tools to measure your on-going performance.
The building blocks for RM are: training, a decision-making procedure, a regular allocation of time to RM, resources available to input and analyse data, processes in place, and top management commitment.