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Revenue Management: Keys to its importance

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3 November 2015 at 6:00, by

JVSII4KCCKWhen it comes to income, opportunities to optimize the hotel’s result are very important, and it would seem that after many years focusing on cost management and control, income management and its direct associated costs now have a lot to yield. A precise definition of Revenue Management – used to optimize the hotel’s income – would be: “Management section focused on maximising the hotel’s profit by proper management of the demand, inventory, channels and rates”.

Demand, when defined in the broadest sense; client, market, segments, etc., allows us to manage volume, fair shares or market shares.

The inventory is made up of product units available for sale, all the different types of rooms as well as conference spaces, food sales points and any other source of income.

Distribution channels and their associated costs allow us to develop an optimal structure that complements the sales channels and allows us to reach the goal we have set in lead-time. The potential of the direct channel will have an essential role within this management area.

Dynamic rate management offers the chance to capture different levels of demand, with an ability or rate tolerance that depends on our strategy or market circumstances. Accepting Revenue Management – as the pillar that all commercial management is based on – means the sales and marketing management must be perfectly coordinated, with marketing actions aimed and measured in terms of their effective generation of demand and sales actions aimed at catching that demand at the lowest price possible.

In an ideal environment, commercial management is integrated and supported by Revenue Management and will be accompanied by a revenue culture throughout the whole organization, or at least at management levels, and all the commercial levels.

As in any other management area, in the hotel business, Revenue Management is clearly focused on the client. The demand – in this context – is the client’s voice telling us what the tolerance level to different rate levels is, in regards to a series of informative elements available when they are making the decision to buy. The loss of the client’s perspective by the Revenue Management department is a risk that needs to be addressed with urgency, as more than one company has ended making this an area of self analysis, losing focus of business dynamics.

Innwise is the perfect ally for implementing, training and outsourcing service management for hotels of any size and level of complexity. They have specialised resources, access to the best technology in the sector and have trained more than 1200 professionals and high level directors belonging to some of Spain’s most important hotel chains. All of this backed by Idiso’s experience as leading provider in 360º hotel distribution technology.



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.

1 comentario 

  1. Marva 10 October 2017 - 21:10

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