Ask the average person in hotels and they will probably struggle to give you a definition of revenue management. It is oft confused with accounting, cost control and other administrative functions. So I feel compelled to give you my definition.
Revenue management in the hotel industry is the use of pricing strategies, marketing and distribution channels, and inventory management to maximize a hotel’s revenue from each available room or suite. It is a way of forecasting customer demand and ensuring that the right products and services are offered to the right people at the right prices at the right times. Revenue management helps hotels better understand their customers and their preferences, identify potential upsell opportunities, and optimize pricing and inventory to achieve the highest possible profits.
Thank me later, Stephen
Comments welcome
Stephen is a hospitality professional from Johannesburg South Africa. His career started with THF hotels in the UK and subsequently with the Southern Sun Hotel group in Johannesburg. Stephen’s first steps into entrepreneurship was Hickmore Recruitment / CareerMap, a leading supplier of Senior and Exec recruitment services. Stephen was a founder of Pple Hospitality (formerly HSC) the largest Hospitality Industry full-service outsourced staffing company in South Africa. In March 2020 Stephen became a director and owner of the Swiss Hotel School South Africa, which is now his full time endeavour. Stephen writes for a number of publications on food and hospitality industry matters, trends and opinions.
