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Crisis Management , Part 1

publication date: Feb 10, 2013
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Pricing is a crucial revenue management (RM) practice affecting both occupancy and RevPAR (revenue per available room).  In order for a RM strategy to succeed, a balance should be maintained between simulating sufficient demand to maximize occupancy, while not leaving money on the table in the form of too-low ADR (average daily rate).  In the current environment of price transparency, rates/prices take on an even greater role.  Thus, suggesting the right rate to a potential customer has become one of the most important aspects of revenue management. 


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