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Revenue Management Blog2020-07-08T20:21:27+02:00

What is Yield Management?

Yield management is a pricing strategy, which is commonly utilised by businesses in hospitality, air travel and other tourism related fields, in order to generate maximum revenue from a perishable inventory (e.g. hotel rooms, or airline seats). Here, we answer the question 'what is yield management?' and provide an explanation for why it is so useful for hotel owners and others working in hospitality. Defining Yield Management In simple terms, yield management is a strategy

What is RevPOR?

Revenue per occupied room, also known as RevPOR, is a KPI used within hotel management to assess financial performance. As a result, it can play a role in a revenue management strategy. Its main value to hotel owners is in giving them an idea of exactly how much revenue they are making from the rooms that they manage to sell. What does RevPOR stand for? As a performance metric, RevPOR is concerned with all of

What is RevPAR?

Revenue per available room, or RevPAR as it is usually shortened to, is a KPI used within the hotel industry in order to assess financial and business performance. As a metric, it is concerned with both room revenue and occupancy rate, which makes it an important indicator of the overall performance of a hotel, as well as a useful component of a revenue management strategy. What does RevPAR stand for? Essentially, RevPAR is a measurement

What does GOPPAR stand for?

A key performance indicator, or KPI, is a quantifiable measurement of business performance. The use of KPIs is essential for implementing a successful revenue management strategy, as it allows businesses to identify areas of success and failure, as well as trends related to demand and customer behaviour. GOPPAR is one of the most important KPI used by hotels for the purpose of revenue management. In this article we explain what GOPPAR stands for and why

Hotel KPI’s explained: ADR, REVPAR and GOPPAR

Revenue management is a data-driven approach to predicting customer behaviour, with a view to optimising product pricing and availability, in order to maximise revenue. It is especially useful in the hotel industry, because hotels have a limited number of rooms available and experience varying levels of demand. When carrying out a revenue management strategy, there are a number of key performance indicators, or KPIs, which should be tracked. Essentially, KPIs are quantifiable measures, which allow

What is an Average Daily Rate (ADR)?

Average daily rate (ADR) is a KPI which is commonly used for revenue management within the hotel industry. The primary value of ADR, as a metric, is its ability to reveal the average rental income connected to occupied rooms each day, which is valuable for revenue management. It can, therefore, give hotel owners an idea of their current operating performance, especially when compared to other hotels with similar characteristics. What is ADR? In simple terms,

By How Much Can Upselling Boost Your Hotel’s Revenue?

The importance of upselling within the hotel industry has increased over recent years. No wonder, because a good upselling strategy can significantly boost a hotels revenue. But is upselling beneficial for every type of hotel? Is it worth for your hotel? In this article you find a comparison of the upsell performance per type of hotel, based on recent benchmark report. At the bottom of the article you also find a link to download the

What is TRevPar?

Total revenue per available room, or TRevPAR, is a KPI used by those within the hotel industry to assess business results. It is concerned with total revenue generated from rooms, and space available. As a result, it can play an important role in a revenue management strategy, and can provide

SEO vs CRO: What Gives Hotels a Higher ROI?

How much should you invest in Search Engine Optimization (SEO) or Search Engine Marketing (SEM) for your hotel to increase your sales by 5%? If you have a limited budget, what is the smartest way to use it? Can Conversion Rate Optimization (CRO) be a better solution? In this article

RMS System: An Overview of the Most Important Features

Revenue management is an important concept for those in the hotel industry, and a revenue management system (RMS system) can go a long way towards ensuring you are making informed decisions, based on evidence and data. In this article, you will find out more about RMS software, and the most

Do Small Hotels Need a RMS? How to Overcome the 6 Challenges?

As a hotelier, you have a lot on your plate. From taking care of your staff and guests to managing your online presence, bills and housekeeping - it’s no easy task. But even so, it is imperative you do not overlook one of the most important things to manage: your

RevPAR versus RevPOR

Revenue per available room, or RevPAR, and revenue per occupied room, or RevPOR, are two KPIs used within the hotel industry, especially for revenue management purposes. Although the two metrics have similar names, what they measure is actually quite different, meaning neither KPI is necessarily more useful than the other.

RevPAR versus GOPPAR

Revenue per available room, or RevPAR, and gross operating profit per available room, or GOPPAR, are two of the most vital KPIs available to hotel managers and both form an important part of any effective revenue management strategy. Both metrics concern themselves with occupancy rates, but they detail very different

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