Significance of Revenue Management in Hospitality Industry
Revenue management is commonly associated with presenting the right room at the right cost to the right client at the right time. At the current state, hotel industry profit centers are extending to newer avenues such as conferences, restaurants and other recreational facilities such as Spas and golf courses. The common traits among each are that every one of these products is perishable. This means if a hotel room is not sold till end of day then it is an utter waste. It can’t be held saved for a later use. This simply means that the hotel manager must insure that the revenue management achieved from each night booking is streamlined to average the non-sale nights. Failing to do so means that hotel loses out on revenue and witness declining profit margins. Read More