Revenue management is the practice of predicting or anticipating customer behaviour, and then optimizing pricing, product availability and distribution, in order to maximize revenue.
In addition, it is broader in terms of overall focus. While it uses the price differentiation to maximize revenue from hotel rooms, it also takes into consideration the revenue that is generated from other aspects of hotel business, such as restaurant sales, bar sales, room service, and spa bookings.
Beyond this, revenue management strategies are much more likely to take into consideration other factors including costs, associated with certain distribution channels. As a result, it relies on the gathering and analysis of data. This way , it makes it easy to identify patterns and forecast demand.
Revenue management software allows you to make better decisions. As management is an arduous task, constant work is needed most of the time. With Revenue management you can be relieved from such work. As a result you can focus on other important business activities, helping to increase the overall efficiency of your company.
–Accuracy of data
Using a revenue management system means the information needed to measure your rates effectively comes directly. That guarantees that the information is accurate and up to date. Don’t leave your properties valuable revenue decisions to guesswork. Instead, make sure you have the data you need to make proper decisions and reduce the risk factor.
Demand forecast is an estimate of customer demand during a specific period of time. What is more, forecasting demand is very useful for management, especially in regard of planning budget and goals. Of course forecasting also generates vital information for marketing teams and can help to creat and direct appropriate campaigns.
Revenue management enables the company to create a competitive pricing strategy. Thus, you can draw in customers and give your company an edge over its competitors. In fact, revenue management is so pervasive within certain industries that companies failing to implement revenue management strategies are unable to continue competing effectively within the marketplace.