Archive for February, 2008

Demystifying Hotel Revenue Management

Monday, February 11th, 2008

Have you recently sent out an RFP, and received limited or no response? Are you finding it more and more difficult to find the right hotel at the right price? Are hotels passing on your business without an explanation? If you answered yes to any of these questions, welcome to the club! Many meeting planners are facing these same challenges. In order to succeed in this hotel seller’s market, planners must first understand the role of revenue management.

Revenue management is not new. Hotels have used it for years. Simply stated, the goal of revenue management is to maximize profits based on projected demand. What is new is how involved hotel revenue managers have become in the sales process, and how influential they are in overall decision-making. More likely than not, it is not the Director of Sales or General Manager that has the final say on whether a hotel signs your business, but the revenue management team that makes the final decision. (more…)