Introduction to Revenue Management
Revenue management is about selling the right room to the right guest at the right price at the right time.
Key Metrics
- ADR (Average Daily Rate): Average revenue per occupied room
- Occupancy Rate: Percentage of rooms occupied
- RevPAR (Revenue Per Available Room): ADR × Occupancy Rate
Basic Strategies
1. Dynamic Pricing: Adjust rates based on demand, season, and local events.
2. Length of Stay Restrictions: Require minimum stays during high-demand periods.
3. Early Bird Discounts: Encourage advance bookings with special rates.
4. Last-Minute Deals: Fill empty rooms close to arrival date.
Tools You Need
A modern PMS like Lobbix provides built-in analytics and pricing recommendations to simplify revenue management.