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What is Revenue Management for hotels?

What is revenue management for Hotels?

As price comparison sites are on the rise, revenue management is becoming increasingly popular within the hotel industry to achieve the best price at the best time to the right customer. Below you will find out why hotel revenue management is so important to maintain performance and profitability.

What is revenue management?

Revenue management, also known as yield management, refers to the practise of revenue analysis and strategy review to predict demand and achieve the best price at the best time for the right customer. This is achieved by performance analysis, strategy review, competitor analysis, pricing and inventory management. By looking at demand and consumer profiles, companies can predict the optimal selling price, increasing demand and conversion therefore achieving maximum revenue growth.

Online presence

Revenue management is often adopted within the hotel industry to maintain performance during the rising popularity of price comparison websites and feedback platforms such as Tripadvisor. When price is so closely monitored by consumers, hotels must ensure they look at other revenue analysis indicators to improve profitability. Performance management is a key element of revenue management for hotels and must be taken seriously. Negative feedback and incorrect information about your hotel will naturally have a negative effect on your sales and revenue potential and therefore must be addressed.

However, often companies do not have the full range of skills or resources required and turn to consultancy services to achieve a tailored revenue management solution.

Revenue management consultancy services

Octopus Revenue Ltd offer an affordable and fully flexible revenue management solution for hotels, making hotel revenue management support and training accessible to all hotels who may not have this skill level available to them. Consultancy Service companies such as Octopus Revenue offer a remote revenue management solution from as little as 4 hours per week to more complex revenue management projects.

Whether you require general advice on revenue management for hotels or a more in depth consultancy service, Octopus Revenue Ltd will provide you with revenue management solutions to suit whatever you need. Call 0191 301 7656 or visit the website.

This was posted in Bdaily's Members' News section by Sarah Thompson .