Optimising Revenue with both Pricing & Availability

With rapid technological advances it is important to remember that the fundamental process of revenue management does not change, only
the environment in which we manage it. That being said however it can be easy to lose our way and stray from the process.

Just juggling rates as your key strategy will guarantee money will be left behind. You weekly inventory is like a jigsaw puzzle and within all the demand that wants to stay there are some perfect pieces that hit the maximum revenue target for your puzzle. Factoring in length of stay and propensity to pay are vital in selecting the right pieces.

Can you maximise revenue by taking business in the order it comes in?
– yes, but only if it presents itself in optimal order. This of course is unlikely to happen hence the importance of RM to protect for the right pieces.

Good article by IDeas highlighting the importance of this – however contrary to the opening header for the article, factoring in availability in conjunction with pricing is not the latest thinking, it has always been a key element in the process of RM.

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