How Revenue Management Has Changed!

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October 01, 2012
Revenue Management
John Burns

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It is impressive the changes – or should we call it progress – that is evident over the last decade in how revenue management is practiced in hotels. 
It has been a remarkable transition from then to now, and it is not over yet.

Then                                          Now                                                                                       
Focus on FIT room rates                 Group booking decisions and rates too
Occupancy & ADR                           RevPAR, RevPAR Index , GopPAR and more
Rooms were the sole focus              Involved with every revenue-generating area of the hotel
Rate management                         Channel mgmt. too, plus social media mgmt.
Junior mgmt. “outsider”                  Key property executive
Spreadsheets                                Revenue Management Systems
Data review                                   Data mining & Business Intelligence
“Number crunching”                        Analytics plus participating in creative promotion development
One boss – the DOS                      Multiple bosses - GM, Owner, Asset Manager
Always agreeable                           Sometimes argumentative - defending not-always-popular positions
Solo position                                 Leading a team
Tactical perspective                        Combing strategic and tactical perspectives
Revenue                                       Profit

©2012 Hospitality Upgrade
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