Pricing is the process of setting rates to get the optimal revenue. It can be dynamic and will be demand and season driven. There should be a strategy on how much a price set at the beginning of the year as a standard rate can move up or down throughout the year depending on demand. So for example it would be recommended that as a base rate of 100, the highest rate should be 110 and the lowest 90, a 10% fluctuation from the base rate depending on demand levels.

Typically inventory can be classified as:

  • A hotel
  • A long stay apartment
  • A hostel
  • Food & Beverage restaurant facility
  • Meeting rooms
  • Attraction or activity

Developing the RM rate strategy should be based on typical customers needs that could be defined as follows for example:

  • Mid to low price level and desire to seek value for money
  • A location near to things to do and see
  • Convenient location for business travellers to visit local companies/offices
  • A safe and secure environment to stay in
  • Clean and tidy room and public areas
  • Near to transportation hub
  • Easy and hassle free bookings
  • Access to a fast and reliable WIFI network

> Continue to Rate parity

Revenue management

Goal and mission 
Market segmentation 
Pricing and rates 
- Rate parity 
- Price strategy 
- Price segmentation 
- Pricing grid
Budgets, forecasting and a demand calendar 
Capacity allocation 
IT / Analysis support tools