Occupancy rate is a key metric in hotel revenue management that measures the percentage of available rooms that are sold during a specific period. It’s a crucial indicator of a hotel’s performance and is closely linked to revenue generation. Formula: why is occupancy rate important? revenue management activities related to occupancy rate By effectively managing […]

RevPAR (Revenue Per Available Room) is a key metric in hotel revenue management that measures a hotel’s revenue performance. It’s calculated by multiplying the Average Daily Rate (ADR) by the Occupancy Rate. Here’s the formula: why is revpar important? revenue management activities related to revpar By effectively managing RevPAR, revenue managers can improve a hotel’s

Rack rate is the published or list price of a hotel room. It’s the highest price that a hotel is willing to charge for a room, and it serves as a benchmark for pricing. Here are some key aspects of rack rate: revenue management activities related to rack rate By effectively managing rack rate, revenue

A walk-in is a guest who arrives at a hotel without a reservation. While walk-ins can provide additional revenue, they can also present challenges in terms of room availability and pricing. Here are some key aspects of walk-ins: revenue management activities related to walk-in By effectively managing walk-ins, revenue managers can maximize revenue potential while

A Property Management System (PMS) is a comprehensive software solution used by hotels to manage various aspects of their operations, including reservations, front office functions, housekeeping, and accounting. It’s a crucial tool for revenue managers as it provides essential data and functionality for optimizing revenue and managing inventory. Here are some key aspects of PMS:

Overbooking is a strategy where a hotel accepts more reservations than it has available rooms, anticipating cancellations or no-shows. This practice can help maximize occupancy rates and revenue, but it also carries the risk of having to turn away guests who arrive without a cancellation. Here are some key aspects of overbooking: revenue management activities

Booking engine is a software platform that allows guests to book hotel rooms directly through a hotel’s website or other online channels. It’s a crucial tool for revenue managers as it enables them to manage pricing, inventory, and distribution effectively. Here are some key aspects of booking engines: revenue management activities related to booking engines

Ancillary revenue refers to additional revenue sources generated by a hotel beyond room revenue. These can include fees for services like Wi-Fi, parking, spa treatments, room service, or the sale of merchandise. Ancillary revenue can significantly contribute to a hotel’s overall profitability, making it an important area for revenue managers to focus on. Here are

Booking pace refers to the rate at which reservations are being made for a specific future date or period. It’s a valuable metric for revenue managers to track and analyze, as it provides insights into demand levels and helps them make informed decisions about pricing and inventory management. Here are some key aspects of booking

Booking window refers to the time between when a guest makes a reservation and the date of their stay. Understanding booking windows is crucial for revenue managers as it allows them to anticipate demand and adjust pricing and inventory strategies accordingly. Here are some key aspects of booking windows: revenue management activities related to booking