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What is Hotel Revenue Management?

In the hospitality industry, Hotel Revenue management is an important concept, allowing hotel owners to anticipate demand and optimize availability and pricing, in order to achieve the best possible bottom-line results.

Revenue management in hotels refers to the strategic distribution and pricing tactics used to sell your property’s perishable inventory to the right guests at the right time, to boost revenue. 

Understand the foundation of revenue management

The basics of Revenue Management evolve around what different customer segments are willing to pay, every guest visiting your property has a maximum value they can offer your hotel; revenue management is about capturing as much of this value as you possibly can. This can be done by measuring and monitoring the supply and demand of your hotel rooms as well as more guest targeted actions, such as convincing the guest to book direct, up-sells or extras, purchase extensions and become a returning guest.

The best pricing strategies are based on the understanding that hotel pricing fluctuates and can change from one second to the next. This is why you should never be afraid to continuously change your rates and work with dynamic pricing.

Customers actually expect fluctuating prices over time – most businesses where consumers spend money are varying their prices based on demand, supply and shifts in costs.

Effective hotel revenue management strategies can help hoteliers to:

  • Make more accurate forecasts and better manage resources like staff and other variable costs.

  • Secure the most effective distribution channel strategy to promote your hotel

Atomize Revenue Management Software handles your revenue management tactics by optimizing your price adjustments in real-time. The Atomize algorithm decides the optimal room rate at any time in order to sell at the best price level and maximize your hotel revenue.

“Atomize has proven themselves to be able to output price recommendations that we highly trust. ”

We are very impressed with what Atomize offers in terms of technical competence, agility, responsiveness, and overall delivery.

Johan Forsberg, Revenue Director, Gothia Towers

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