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

Tools of the Trade: Why Revenue Managers Need to Be Active Software Reviewers

A comprehensive approach to revenue management traditionally includes a number of different solutions from PMS, CRS, RMS, rate shopper, and business intelligence tools. But at a time when occupancy levels remain aberrantly low, what other tools, if any, should a revenue manager be aware of that can help increase revenue? The Future of Revenue Management: Total Profit Management This article reflects a conversation between Paul Peddrick of ROOMDEX and Oliver Geldner, CTO & Partner of

Why Revenue Management Systems Will Never Replace Human Revenue Managers

When the desktop computer came along, it needed human input. It's no different with an RMS (revenue management system.) Even an AI-enabled RMS can't think independently (and that's a good thing!) You've probably heard plenty about AI (artificial intelligence) chatbots that learn from biased human language and "deep fakes," which are the 21st c. version of Photoshop. These are just a few real-life concerns in today's emerging AI. Yet, as hoteliers and a society, we

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 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

What is an Occupancy Rate?

Occupancy rate is a KPI used by those within the hotel industry to assess the performance of a hotel. As a metric, it is concerned with the percentage of a hotel that is occupied and can be used alongside other KPI’s, such as ADR (average daily rate) and RevPAR (revenue per available room) as part of a revenue management strategy. What does occupancy rate stand for? In simple terms, occupancy rate refers to the number

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,

3 Ways to Streamline Upselling Across Your Entire Hotel Chain

Once it’s in place, an automated upselling system brings countless advantages, like a more personalised guest experience, increased revenue and a more efficient workflow. Achieving these results at a single property may feel relatively straightforward. But how can you replicate them at all hotels across your chain or brand? 1.

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 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

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

Total Revenue Management: How Hotels Can Maximize Their Revenue

Total revenue management can broadly be defined as the goal to manage each revenue source to the highest profitability. By incorporating multiple revenue points-of-sale like food and beverage, banqueting and conferencing facilities, spa, retail, leisure activities and others with room revenue management, total revenue management assists hotels in achieving their

2022 Top Upselling Deals and Trends in Hospitality

Without a doubt, the last couple of years have brought countless challenges for hoteliers. But despite that, many creative and forward-thinking teams were able to steer their properties through these challenging times. For many of them, upselling played a major role in their success. The 2022 Hospitality Market Report summarises