Hotel Revenue Management has been around since the 1990’s. The term originated from the airline industry and was derived from their mathematical sales model. The hotel chain giant, Marriott was one of the first few hotels to introduce it as a serious concept in their business strategy. Of course, more than two decades later, the Revenue management concept has evolved based on hotel size, requirements and other influencers. Now, revenue management is not only an obvious part of most hotels’ business plans, but has found so many takers among independent hotels.
The advent of internet and mobile devices have been directly responsible for this trend. With the rising dominance of OTAs (Online Travel Agents), revenue management is perhaps at its most complex. Ask any hotelier, be it a B&B, apart hotel, resort or a multi-property, about the revenue strategy they follow and you are bound to get confused responses. The deal is, everyone would like to adapt a successful revenue strategy, but very few can find their way around it.
A lot of hoteliers we interact with feel that the jargons and abbreviations surrounding Revenue Management can be pretty intimidating. Also, very few independent hoteliers work with limited resources, be it time or money. Keeping this in mind, we bring to you the Fundamentals of Revenue Strategy for Independent Hotels. Discover simple approaches that you can implement easily and extract the maximum value out of each room sold. Revenue Management is an ongoing process, and building the right foundation is critical.
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