the potential

“Firms employing revenue management techniques have seen revenues increase between 3% and 7% without significant capital expenditures, resulting in 50% to 100% increase in profits!”

Robert G. Cross, Author
Revenue Management – Hard-Core Tactics for Market Domination

 

“Revenue management has contributed millions to the bottom line, and it has educated our people to manage their business more effectively. When you focus on the bottom line, your company grows.”

Bill Marriott Jr. 
Executive Chairman-elect & Chairman of the Board
Marriott International

 

“Our process-driven approach consistently yields significant results. Most hotels average a 6-8 week ROI. In real terms, this is usually hundreds of thousands or even millions of dollars over the course of the year. One of our 5 diamond hotel success stories added $1.4 million to their top line in just 15 months.”

Bonnie E. Buckhiester
President & CEO, Buckhiester Management

 

the definition

academic definition

Hotel revenue management is “systems and procedures to maximize results from the sale of a product or service in more or less fixed supply, whose revenue producing ability diminishes with time.”
Dr. Warren Lieberman
Veritech Solutions Inc.

conceptual definition

“Revenue management is the art and science of predicting real-time customer demand at the micromarket level and optimizing the price and availability of products.”
Robert G. Cross, Author
Revenue Management – Hard-Core Tactics for Market Domination

practical definition

Hotel revenue management means…
  •  selling the right room
  •  to the right customer
  •  at the right time
  •  for the right price
  •  the right length of stay
  •  from the right distribution source.
Bonnie E. Buckhiester
President & CEO – Buckhiester Management

the myths

myth: Hotel revenue management creates demand.
reality: Hotel revenue management manages demand…i.e. once the phone is ringing…

myth: Hotel revenue management is just an overly complicated way of managing rates and stays…largely tactical.
reality: Hotel revenue management is a structured business process which allows you to strategically manage demand throughout the year.

myth: Hotel revenue management is just discounting.
reality: Hotel revenue management is a business process designed to maximize revenue from each market segment.

myth: Hotel revenue management is a sophisticated computer or “black box”.
reality: Hotel revenue management software is only one component of an overall yield management program.

myth: Hotel revenue management is only good in periods of high demand.
reality: Hotel revenue management is applicable in high, medium and low demand.