Telltale Signs of Poor Revenue Management

It is easy to spot hotels which are not using revenue management (effectively), Hotels which start-off with strong rates and begin dropping rates when they realize that reservations are not what they expected. Hotels with coaches parked outside during high season. This is the same hotel which will not vary the rates when reservations appear stronger than anticipated. This rate, “set it and forget it”, situation is more common among smaller independent hotels and can be avoided if someone is assigned to revenue management. The hotel industry tends to magnify the complexity of various tasks but revenue management need not be a complicated process in order to be effective. There is a need for those responsible for applying revenue management tactics to have gone through a learning process in order to be most effective. This text has been modified from the article by Neil Salermo that can be found at http://www.hospitalitynet.org