Setting the capacity allocation is a decision of whether to accept or reject an offer to book a room, how to then allocate capacity to different market segments or channels and when to withhold a room from the market and sell at a later point in time. Because demand is variable and uncertain, RM users must decide if they should sell capacity to a low paying customer today, or hold that capacity for a later arriving, potentially higher paying customer, who may or may not materialize.

How much of your room inventory you allocate to each channel will depend on your forecast and demand calendar.

Revenue management

Goal and mission 
Market segmentation 
Pricing and rates 
Budgets, forecasting and a demand calendar 
Capacity allocation
IT / Analysis support tools