The Fundamentals of Revenue Management: 26 important elements to make your hotel’s strategy a success


Revenue management is the cornerstone of running a profitable hotel. Without revenue management disciplines, you’re operating your hotel business blindly.

The most successful hoteliers are savvy operators constantly on the lookout for smarter, more efficient ways of managing their hotel business, driving it to succeed.

Managing revenue – or yield – refers to all the pricing tactics you use to sell your hotel’s assets to the right guests at the right time, to boost revenue growth. And this can only be done by measuring and monitoring the supply and demand of your hotel rooms.

But it’s extremely challenging to tackle distribution in a way that delivers the most revenue to your hotel.

Hoteliers, just like you, have to navigate a complex industry landscape, which involves so many distribution channels – wholesalers, travel agents, online travel agents, and metasearch to name just a few.

This FREE downloadable eBook from SiteMinder will help address the complexities giving you helpful, actionable tips for an effective revenue management strategy, covering:

  • Market segmentation
  • Inventory control
  • Optimised pricing strategy
  • Forecasting demand
  • Automation

Also included, is a BONUS glossary: ‘Your hotel’s ultimate A-to-Z guide to revenue management’ defining the 26 important elements that you need to make your hotel’s strategy a success.

Here’s a sneak peek of what’s inside the eBook:


Imagine eating some delicious ice cream. But first you have to make it and you have two options. You can opt for a manual process stirring it every 30 minutes for three and a half hours as it slowly freezes. Or, choose automated technology, such as an ice cream maker, that can do the same job seven times faster. Using automation is a great way to ensure accuracy and quality while reducing the manual effort involved. You should take the same approach to your revenue management. Automating the process of analysing your local competitors and the impact they have on your room pricing strategies will save you man hours and money. It’s a great way to keep ahead of the competition.


Monitor your competitors’ rates to look for signs in the market that indicate demand is increasing and inventory is getting booked out. Then you can react accordingly. For example, when your competitors increase their rates or you notice their rooms are closed out, increase your own room rates to make sure you’re not losing out on revenue and profit.

Knowing when to implement higher pricing is key for good revenue management. Click to Tweet


Segmentation is important – especially for digesting all the data you have access to. Segments help you to make strategic decisions based on a particular group of guests. We’ve already covered lower and higher yield segments and it’s crucial to become familiar with them. To forecast by segment, you should put a strategy in place, which prioritises high yield over low yield. This is easier said than done because the critical part is forecasting. You need to know your demand for best available rate (BAR) business and high-yield business, and ultimately have enough confidence to say no to the low yield business. You need to be able to forecast by day and by segment too – in the past this was done once a month, but now thanks to real-time data it’s evolved to forecasting by day and by segment.




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