The Profit-Oriented Revenue Management Revolution To Maximize Profitability in Hospitality

Detlev Remy | July 30, 2024

Traditional revenue management concepts in the hospitality industry have evolved significantly in recent years due to technological changes, consumer behavior, and market dynamics. Where revenue management used to focus on maximizing room revenue alone, profit-oriented revenue management shifted the focus to ancillary revenue streams like food and beverage, spa services, events, and other on-site amenities. Instead of static pricing models that were used in the past, hotels can now rely on dynamic pricing models that adjust rates in real time based on demand, competition, and market conditions using advanced algorithms and AI. Whereas revenu...