Measuring the impact of revenue management

Abstract

Revenue management vendors in the hospitality industry tend to promote the fact that successful revenue management programmes will result in substantial increases in revenue. At the same time, hotel decision makers are also looking for measurement tools that can justify the investment they are considering — or have already made — in such revenue management programmes. This paper presents a method adopted by Optims, which aims to measure the performance of a revenue management programme scientifically. It includes operational results obtained in leading hotels of Western Europe and suggests further enhancements for improving the performance measurement of a revenue management programme. It is worth noting that other vendors may adopt alternative approaches to similar tasks.