What is RM

What is Revenue Management? It’s not just a buzz word or “fancy math’s” it is an actual process and understanding it is the key to success.

Revenue Management is the process of maximising room revenue through the management of RevPAR (Revenue Per Available Room)/Yield.

By using restrictions driven by demand patterns we can choose the most profitable mix of customers from our existing demand base and maximise both short term and long term revenues.

Property owners invest in a certain number of rooms and Revenue Management aims to gain maximum return for owners on their investment.

RM principles can be applied to any industry that has perishable assets. For example once a day passes we can never sell that room (or seat as in the case of an airline) for that day, at that point in time to that customer again.

Missed opportunities in revenue cost industries millions of dollars every year.