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Revenue Management: a step in the right direction


6 October 2015 at 6:00, by

post Porelbuencamino2Revenue Management is what we call the appropriate sales technique, to the right clients, at the right time, it is the hotel’s control panel, the machinery that keeps the fine balance between occupancy and average price: it is a daily challenge that involves the whole team. The managers office, the commercial and marketing departments and reception need to have a unified criterion to establish a joint strategy that takes into account the budget, rate calendar and demand forecast so as to observe profit development. If no analysis is carried out it is impossible to see the hotel’s development and subsequent needs. Any information that is generated allows us to continue improving and shows us where changes are needed.

We should never forget the hotel’s aim is to accommodate guests and provide them with a satisfactory experience. It is essential to find a balance between engagement and income. This mix is possible if the prices that are applied are not just competitive but also loss free: bookings that will not be cancelled, occupancy rates that are closer to the forecast, or segments that, thanks to the hotel’s location, have a large number of reservations all year round, or during specific seasons. This will happen if we attract clients that need us as much as we need them.

For proper revenue management the client must be the central figure. Due to the increase of online holidays and reservations, the content generated by website users has become a deciding factor for clients, it also allows us to get to know our clients better. The solution is both time consuming and complicated, and involves designing products and services that blend the client’s desires and needs with the hotel’s objectives. Traveller segmentation can be as complex as we want to make it, the more we approach the ideal segments, the more information we will have and the better we will be able to define our strategy. To get the right client to look for our hotel, and not the competition, should be part of all hoteliers’ strategy.

It is important to take all possible variables into account and achieve a perfect blend. The Marketing department is in charge of attracting the right type of demand while the Revenue department optimizes the prices and promotes continual improvement, not just when it comes to profit, but also strategy and teamwork. We make our hotel more visible, we form a relationship with the client, always providing the best possibilities and services and adding benefits that will promote loyalty and exposure, like the top quality fuel that will increase the profitability of the direct channel and improve the RevPAR.

The future of Revenue Management will involve better strategies; the hotel will need to be managed as if it were one single business unit, coordinating the income from each of the departments. This includes having the appropriate technology to speed up operational management and to allow you to control the main revenue indicators enabling you to take proper decisions while keeping an eye on the competition.

Innwise offers a series of Revenue management consultancy services, outsourcing and training, such as the upcoming editions of the Top Level Revenue Management program for hoteliers. They are all adapted and personalized to each client depending on your needs and hopes, enabling you to take advantage of our experience, knowledge and tools, while maximising your profit.



Idiso is much more than a technological service provider. Our mission is to provide real value to our clients. We want to become THE GLOBAL HOTEL SALES PARTNER, helping hoteliers sell more and better thanks to our 360º distribution and marketing solutions.

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