Traditional Revenue Management

Here the hotel closes discounted rates are occupancy increases – often only when the hotel has already sold 80% of its rooms causing the hotel to lose a great deal of revenue opportunity. Many hotels build a demand base with discounted group business; dedicating a portion of their rooms to groups –this can enable the hotel to end up with stronger average rates overall as the value of the remaining rooms is higher. This would be a very simple process except that revenue management should be applied to group bookings as well. One of the factors affecting good revenue management is the fact that many hotels accept too many group rooms at deeply discounted rates. This text has been modified from the article by Neil Salermo that can be found at http://www.hospitalitynet.org