The 5 main concepts used in hotel revenue management are:
1. Revenue Management: This is a process that allows you to manage your hotel’s profit and loss, as well as inventory.
2. Inventory Management: This is a process that allows you to control the number of rooms available for rent and the price at which they are sold.
3. Pricing Strategy: This is a strategy that helps you determine what your customers will be willing to pay for their room when demand is high, and what they’ll pay when demand is low.
4. Rate Optimization: This is a process that helps you find optimal rates based on supply and demand so that you make the most money while keeping rooms booked at 100% capacity.
5. Revenue Optimization: This is a process that helps you maximize revenue by optimizing pricing, occupancy levels, and room yield per night (which refers to how much money guests spend on food, drinks, etc.).