Hotel Revenue Management: Solutions, Best Practices, Revenue Manager’s Role

What is hotel revenue management?

  • Customer segmentation
  • Demand forecasting
  • Yield management
  • Dynamic pricing

Customer segmentation

Demand forecasting

How demand forecasting works during peak and low demand periods

Yield management

Yield management tactics

Dynamic pricing

Dynamic pricing strategies for hotels

Revenue manager: job description

  • Market analysis and segmentation
  • Competitor analysis
  • Customer behavior analysis
  • Historical and current data analysis
  • Yield management
  • Revenue performance forecasting
  • Daily and monthly reporting
  • KPI tracking

KPIs in hotel revenue management

Revenue management software solutions

  • Detecting the most profitable pricing options
  • Demand forecasting
  • Analysis of lost revenue due to overbooking or cancellations
  • Revenue reports by KPIs
  • Collection of historical inventory data
  • Channel- and segment-based revenue analysis
  • Day- or week-based performance analysis

Best practices in hotel revenue management

1. Shift to profit management

2. Using data analysis and predictive analytics

Data and forecasting in revenue management

3. Channel and overbooking management

4. Driving direct bookings

Elements of driving direct bookings online

5. Mobile-driven booking

Hyatt mobile app interface

6. Using AI and chatbots

7. Generating ancillary revenue

Interest of buying additional services by business travelers
Internal packaged offers by Claremont Inn
Claremont Inn

8. Dynamic packaging

Hotelerum dynamic packaging platform

9. Launching loyalty programs

To sum up: steps to increase a hotel’s revenue

  • Create or engage with a data science team to focus on predictive analytics input
  • Ensure collaboration across all departments
  • Use a revenue management software or a PMS with an integrated revenue management module
  • Increase ancillary revenue by selling additional services
  • Manage sales channels
  • Adapt to current digital trends
  • Provide some perks to returning guests and those who book directly



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