Revenue Management is a set of optimal strategies that are aimed to yield the highest potential revenues and profits for capacity-constrained and perishable assets (hotel/hostel rooms, if we're talking about the Hospitality industry).
As Revenue Management becomes more and more relevant in the Travel industry and more hotels finally begin to understand the importance of dynamic pricing fluctuations, various hospitality companies start introducing products that are aimed at assisting hoteliers with managing their revenue, one way or another.
Revenue Management techniques are dictated by the type of product you're selling. What are the main characteristics of hotel rooms as a product and what makes it different from, let's say, apples?..
What is Dynamic Pricing? As we know, the main goal of Revenue Management is to sell the right product to the right customer at the right time and for the right price, with an ultimate goal to maximize the bottom line (the final profit).
What is Revenue Management? Why revenue needs to be managed? The answer is obvious: to increase profits. Unfortunately, not all hotel operators understand the importance of managing revenue and paying enough attention to this activity.