Myths and Realities of Revenue Management

Question 1

Myths

Answer 1

Revenue Management only works in good times.

Hotel must enjoy high levels of demand and occupancy to achieve benefits.

Revenue management only works in four- and five-star hotels.

Only a select few can afford automated solutions.

It is difficult to measure the benefits that deploying a revenue management system (automated or manual) may bring

Question 2

Building a Revenue Management Culture

Answer 2

The relationship between the teams within an organization that set the strategies and the teams that deploy the tactics is extremely important – without a defined link, strategies and tactics may well conflict, leading to neither being successful.

Question 3

Setting “Revenue Management Goals and Objectives” must focus on the maximization of what?

Answer 3

Revenue management programs must focus on maximizing revenue per available room night (RevPAR)