What is Revenue Management?

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What is Revenue Management?
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Revenue Management is an extremely important
element in the hospitality industry. Revenue
Management allows hotel owners to predict the
demand in the market and optimize the
availability and pricing accordingly. This is
done in order to achieve the best financial
results.
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Breaking the term into a simpler format, it is
selling the right room to the right audience at
the the right moment, at the right price, via the
right OTA, which will result in optimum
efficiency.
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Revenue management is sometimes called yield
management. Though these terms are not
interchangeable. Learn with RevAce, the best
Hotel Revenue Management company in Delhi about
what revenue management is.
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Revenue management is interconnected by many
components, like Customer segmentation In this
part of marketing the guests are segmented
according to demographic criteria such as age,
gender, marital status, the purpose of the trip,
what are the spending habits of the guest, or the
interests. It also includes whether the traveler
is a new or returning guest to the property.
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Demand forecasting This information is the
prediction of customer habits based on previous
activities. This part involves the practice
setting of the price bases on the demand. If you
check the demand you might notice that there are
certain fixed seasons when the demand is low and
there are times when the demand is high. And when
such times arise, the revenue manager knows when
to act.
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Yield management This management requires the
best price to sell the rooms along with maximum
profits. There is a focus on the price as well as
the profit. Dynamic pricing This involves
changing the price in accordance with market
demand. This involves selling the property on the
following factors External factors Such as
competitors prices, weather data, and booking
patters.
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Internal factors Such as segmentation, customer
profiles, rates, etc. This strategy involves the
property to keep up with the market and maximize
occupancy rate, as well as other revenue
management KPIs. Looking for revenue management
services in Delhi NCR? RevAce can be the one you
are looking for.
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