ADR, not occupancy, drives RevPAR, study finds
-A 10-year study of 4,000 hotels in Europe found price positioning is a better indicator of RevPAR than is occupancy. By Keith Loria HNN contributor GLOBAL REPORT—Price positioning plays a larger role in driving revenue per available room than does occupancy for European hotels, according to a recent study titled “Competitive hotel pricing in Europe: An…
Revenue Management: An Overview on Past, Present and Future
-A Historical Perspective The airlines are credited for developing the foundational science behind revenue management. Almost since the beginning of commercial flight, airlines had attempted to maximize their revenues by focusing on filling as many seats as possible on every flight. This meant predicting how many booked passengers would show up for a flight and how…
An Introduction to Revenue Management for the Hospitality Industry
-The first of its kind, this book was written to address the emerging course in Hospitality focused on revenue management. Based on the authors’ years of industry experience, this book includes a model for understanding the revenue management process and reveals four basic building blocks to revenue management success. With chapters dedicated to consumer behavior, economic…
Why Now is the Time for Hotel Owners to Leverage Revenue Management
-The hotel industry, in virtually every global market, has recovered from the sharp downturn of 2008 and 2009. In the US market, during the first half of 2014, room demand was up 4.2% and room revenue was up 8.6%. Randy Smith of Smith Travel Research (STR) states, “The surge in demand we witnessed during the summer…
