Discover published sets by community

Revenue Management is the practice of maximizing a company's revenues while selling the same amount of products or services. It involves understanding, anticipating, and influencing consumer behavior in order to maximize revenue from a fixed, perishable inventory.

Perishable Inventory in the context of hotels refers to the availability of hotel rooms; if a room isn’t booked for a night, that room revenue cannot be recaptured.

Yield Management is a variable pricing strategy based on understanding, anticipating, and influencing traveler behavior to maximize revenue from a fixed, perishable resource.

Dynamic Pricing is a strategy that involves varying prices for goods or services based on real-time demand and other external factors, used extensively in hotel revenue management.

Historical Data Analysis in revenue management involves studying past booking patterns, pricing, and revenue to forecast future demand and optimize pricing strategies.

Occupancy Rate is a metric used in hotel revenue management that represents the ratio of rented or used rooms to the total number of available rooms.

The Average Daily Rate (ADR) is a metric that measures the average price paid per room sold, calculated by dividing total room revenue by the number of rooms sold.

Revenue Per Available Room (RevPAR) is a performance metric in the hotel industry, calculated by multiplying the ADR by the occupancy rate.

Market Segmentation in revenue management is the process of dividing a market of potential customers into groups or segments based on different characteristics to maximize sales and revenue.

Overbooking is a revenue management strategy where more rooms are sold than available, based on anticipated cancellations, to maximize room revenue.

Channel Management refers to the tactics and strategies used in managing distribution channels to optimize revenue. These channels can include direct sales, online travel agents, and third-party retailers.

Capacity Management is the process of managing a service's or property’s capacity to ensure customer demand is met without overprovisioning resources.

Demand Forecasting is a critical component of revenue management, predicting future customer demand through historical data, trends, and other predictive analytics to make informed pricing decisions.

Discount Allocation is the strategy of determining the quantity of rooms to sell at various discounted rates in order to optimize overall revenue.

Group Pricing involves creating pricing strategies specialized for group bookings to ensure profit maximization while considering the price sensitivity and demand of group consumers.

LOS restrictions involve setting minimum or maximum stay requirements on room bookings to optimize room availability and revenue based on forecasted demand.

Fencing in revenue management refers to the creation of rate fences or conditions which differentiate pricing levels, such as non-refundable rates vs. flexible rates.

Rate Parity is a legal or contractual requirement wherein a hotel ensures consistent pricing across all distribution channels.

Upselling involves encouraging customers to purchase a higher-end product than they originally intended, while cross-selling invites customers to buy related or complementary items. Both techniques aim to increase overall revenue.

Gross Operating Profit Per Available Room (GOPPAR) is a profitability metric in hotel revenue management, calculated by subtracting operating costs from total revenue and then dividing by the available rooms.

Tactical Pricing refers to short-term pricing strategies aimed at responding to immediate market conditions or competitors' actions to maximize revenue.

Strategic Pricing refers to long-term pricing approaches that consider the overall market position, brand strategy, and customer loyalty to drive revenue growth.

Break-even Analysis determines the number of product units (such as hotel rooms) that need to be sold at a given price point to cover costs.

Booking Pace measures the speed at which reservations are made for future dates, helping hoteliers predict demand and adjust revenue strategy accordingly.