Yield or Revenue Management?

There are many ways to implement revenue management. Whether it is referred to as yield management or revenue management, it means different things to different people, but no matter what definition or tasks are applied to revenue management; it can work magic if applied correctly and consistently. The process of managing the flow of business revenues should be tailored to the individual hotel operation. The primary goal should be to maximize hotel revenue by taking advantage of available demand for rooms at the property. Large successful hotels take revenue management very seriously and have people dedicated to the process; while in small and medium sized properties the responsibility is left to the general manager and front office/reservations. The sad part is that many of the people involved in the process of revenue management have not had access to the new knowledge that is required to succeed in optimising revenue. No matter who is responsible for this important responsibility, revenue management can make a serious impact on the hotels bottom-line. There are several important elements of revenue management, but none less important than controlling costs which is what managers of hotels seem to spend so much of their time doing. The key to increased profit is to find ways to increase Revpar in order to generate additional funds from every room sold that drop directly to the bottom line. This text has been modified from the article by Neil Salermo that can be found at http://www.hospitalitynet.org