Should it Really be Called 'Profit Management'?
Every hotel manager, operator and owner has a fundamental obligation to optimize the long-term profitability of the assets. Fulfilling this obligation can mean things like increasing rates during busy periods, dropping them during slower times to maintain occupancy (and keep staff working) or incurring expenses like a room renovation or investing in technology. Given the uptick in demand that the industry has enjoyed in the past year, one area of investment more and more hotel companies are evaluating is Revenue Management (RM). These hoteliers believe that they can drive increased profitability using RM tools and techniques.
Revenue management is more complex than ever, but potentially more rewarding, too. It requires the whole organization to pull together, but the right Revenue Management implementation can really drive results, creating not just revenues but profits.