In our previous article, The Future of Revenue Management with the OTA's we highlight the rules of revenue management, and the professionals who practice it on an almost-continuous basis. The role of OTAs and online distribution in revenue maximization has gained unprecedented importance.
Nowadays hotel revenue management has become a somewhat controversial buzzword in hotel industry, back in the day, revenue management meant opening and closing availability and rates. When Online Travel Agents entered the scene, the industry became obsessed with simple adjustments of rates.
While the hospitality industry has an ongoing need for managers at all levels, the need is even greater for revenue managers who possess the long-term mindset, capabilities and operational understanding.
Nowadays "Revenue Management "has become a buzzword in the hospitality industry. But many operations executives and owners don't know how the concept relates to them in terms of implementation and how get the most benefits out of it.
Every hotelier is familiar with and knows that Occupancy is the percentage of available rooms that were sold during a specified period of time. Occupancy is calculated by dividing the number of rooms sold by rooms available.