What Is Revenue Management in Hotels? How to Manage Revenue, Not Occupancy

Let's say a hotel has 20 rooms.

In two different months, the hotel achieved:

90% occupancy.

At first glance, the performance of the two months may look the same.

But if the average room rate in the first month was:

4,000 TL

and in the second month:

7,000 TL

the economic result of the two periods is completely different.

Let's consider an even more striking example.

Hotel A

• Occupancy: 95%
• ADR: 4,000 TL

Hotel B

• Occupancy: 82%
• ADR: 5,500 TL

Which is more successful?

If we look only at occupancy:

Hotel A.

But from a Revenue Management standpoint, we can't answer this question on occupancy alone.

Because in hotel management the aim is:

Not to reach the highest possible occupancy.

The real aim is:

To produce the most correct economic value possible from limited room inventory.

This is exactly what Revenue Management deals with.

1. What Is Revenue Management?

In its simplest form, Revenue Management is:

The system of optimizing a hotel's revenue potential by selling the right room, to the right guest, at the right time, at the right price, through the right channel, with the right sales conditions.

The critical word here is:

optimizing.

Revenue Management is not:

• always raising prices,
• always achieving high occupancy,
• always selling the most expensive room,
• constantly running promotions.

The aim is to manage the balance among:

demand + price + inventory + time + channel + sales conditions.

2. Why Isn't Managing Occupancy Alone Enough?

One of the sentences heard most often in hospitality:

“We're full this weekend.”

It sounds like success.

But from a Revenue Management standpoint, a second question must immediately follow:

“At what price are we full?”

Followed by:

“When did we fill up?”

“Which channel did we sell through?”

“How much commission did we pay?”

“Could we have sold at a higher price?”

“Did we use up the rooms too early?”

For example, consider a 20-room boutique hotel.

For Saturday night, the hotel filled up 30 days in advance:

100%.

At first glance, perfect.

But if strong demand for the same date kept coming in over the following 30 days, this may indicate something else:

The hotel may have sold its rooms too early and at too low a price.

The occupancy is successful.

But the Revenue Management may not be.

3. A Hotel Room Has a Very Important Characteristic: It Can't Be Stockpiled

A store can sell tomorrow the product it couldn't sell today.

A car dealer can sell next week the car it couldn't sell today.

But with a hotel room it is different.

Room 105, which stays empty on the night of 15 July:

can't be sold again on 16 July.

That revenue capacity is lost forever.

That is why a hotel room has the characteristic of:

Perishable Inventory.

If it isn't sold today, its value drops to zero.

But the opposite is also true.

If a room is sold at too low a price:

potential revenue is also lost.

Revenue Management strikes a balance between these two risks.

4. What Is Revenue Management's Basic Question?

Classic hotel management might ask:

“How many rooms do we have empty?”

Revenue Management goes further:

“How many rooms do we have left on which date?”

“How fast are these rooms selling?”

“How much more demand do we expect for this date?”

“Which room type is selling out faster?”

“Which channel are reservations coming from?”

“At what price level are they coming?”

“How many days are left until the date?”

“What is the cancellation behavior?”

“What is competitor and destination demand like?”

“What is the economic value of the remaining rooms?”

Revenue Management:

tries to read future demand more than it reports the current situation.

5. Revenue Management ≠ Pricing

These two concepts are also often confused.

Pricing is only one part of Revenue Management.

A professional Revenue Management system can manage the following together:

• Room Inventory
• BAR
• Seasonal Pricing
• Day-of-Week Pricing
• Rate Plans
• Minimum Stay
• CTA / CTD
• Early Booking
• Last Minute
• Occupancy Based Pricing
• Demand Forecast
• Pickup
• Booking Pace
• Channel Mix
• OTA Inventory
• Direct Booking
• Cancellation
• Overbooking
• ADR
• Net ADR
• RevPAR
• Net RevPAR
• TRevPAR

So it should be thought of as:

Revenue Management = Price + Demand + Inventory + Time + Distribution + Restrictions + Data + Forecast

6. Demand Is at the Center of Revenue Management

The economic value of a room:

is not the same every night.

For example, in a boutique hotel in Alaçatı:

The demand on a Tuesday night and a Saturday night may not be the same.

May and August may not be the same.

An ordinary weekend and a holiday weekend may not be the same.

In the same way, in a city hotel:

Monday and Sunday demand may differ.

So:

Even if the room's physical product is the same, its economic value can change by date.

Revenue Management turns this changing demand into price and inventory decisions.

7. How Does the Revenue Management Chain Work?

The simplified professional flow:

Season Calendar → Base BAR → Day-of-Week Pricing → Demand Forecast → Pickup / Booking Pace → Occupancy → Rate Adjustment → Rate Plan / Restrictions → Channel Manager → OTA / Direct → Net ADR → RevPAR / TRevPAR → Revenue Review → New Decision

This system is not linear.

It repeats continuously.

Because as demand changes, the decision must change.

8. What Is BAR?

BAR:

Best Available Rate.

It is one of the basic price references of a Revenue Management system.

But there is an important misunderstanding.

BAR is not:

“the hotel's cheapest price.”

BAR is the basic flexible price reference used for a specific:

• date,
• room type,
• demand condition.

For example:

Room Standard

15 June

BAR = 6,000 TL

is possible.

But this price doesn't have to stay at 6,000 TL forever.

9. Why Does BAR Change?

BAR can be re-evaluated according to the following data:

• current Occupancy,
• number of rooms remaining,
• Pickup,
• Booking Pace,
• Forecast,
• Season,
• Day of Week,
• Event,
• Lead Time,
• Room Type Demand,
• Cancellation,
• Market Signals.

That is why:

BAR is a pricing system more than it is a number.

10. “Occupancy Hit 80%, Raise the Price” Is Not an Adequate System

This is one of the most common simplifications in Revenue Management.

For example, an automatic price ladder can be created:

• 50% occupancy → 5,000 TL
• 70% occupancy → 6,000 TL
• 80% occupancy → 7,000 TL
• 90% occupancy → 8,000 TL

This can be useful as a starting system.

But it is not enough for professional Revenue Management.

Because:

70% occupancy + 60 days

and

70% occupancy + 1 day

are not the same thing.

11. Why Can the Same Occupancy Mean Different Things?

Let's consider a 20-room hotel.

Both dates are:

50% full.

That is, 10 rooms have been sold.

Date A

Days to stay: 30

Last 7 days' Pickup: +1 room

Date B

Days to stay: 30

Last 7 days' Pickup: +6 rooms

For both, current Occupancy is:

50%.

But the demand behavior is not the same.

Date B is selling much faster.

So:

Occupancy tells us where we are. Pickup shows us how fast we are moving.

12. What Is Pickup?

Pickup:

is the net change in reservations for a specific stay date over a specific time interval.

The simple form:

Pickup = New Reservations – Cancellations – Related Adjustments

In practice:

Net Pickup = Today's OTB – Previous OTB

For example:

Here it is not only that reservations are rising.

Demand is accelerating.

This is the signal a Revenue Manager wants to see.

13. What Is OTB?

OTB:

On The Books

that is, the reservations currently in the system.

For example, in a 20-room hotel for 15 August:

if 14 rooms are reserved:

OTB Occupancy = 70%

results.

But:

OTB is not a Forecast.

Because between now and the stay date, the following can occur:

• new reservations,
• Cancellations,
• Modifications,
• No-Shows,
• Room Changes.

OTB can be thought of as:

the demand we know of today

and Forecast as:

the demand we ultimately expect.

14. What Is Booking Pace?

Booking Pace:

shows how far ahead of the stay date, and at what speed, reservations are made.

For example:

This table doesn't only say:

“We sold 19 rooms.”

It also gives the answer to:

“At what period do our reservations accelerate?”

15. What Is the Difference Between Pickup and Booking Pace?

Simply:

Pickup

Shows the movement.

+5 rooms in the last 7 days.

Booking Pace

Shows the pattern of movement over time.

This hotel's Saturday reservations mostly accelerate 7–14 days before the stay.

This difference is extremely important in Revenue Management.

16. What Is Demand Forecasting?

One of the most important skills in Revenue Management is:

forecasting future demand.

Forecast can be thought of as:

Data we know today + behaviors learned in the past + signals of future demand

A Revenue Manager doesn't just say:

“We're 65% full today.”

They ask:

“How many rooms do we expect to have sold when this date arrives?”

17. Current Occupancy and Forecast Occupancy Are Not the Same

For example, in a 20-room hotel:

with 14 days to go:

12 rooms have been sold.

Current Occupancy:

60%.

But past Booking Pace and current Pickup data:

predict 18 rooms sold.

Forecast Occupancy:

90%

can result.

If the manager only says:

“We're 60% full, let's keep the price low.”

they can miss the revenue opportunity.

Because in reality, the date may be moving toward:

90% occupancy.

18. What Data Is Looked at for Forecasting?

Core data:

1. Current Occupancy
2. OTB
3. Pickup
4. Booking Pace
5. Historical Occupancy
6. ADR
7. Cancellation
8. No-Show
9. Lead Time
10. ALOS
11. Day of Week
12. Seasonality
13. Events
14. Market Signals
15. Remaining Inventory

A small boutique hotel doesn't have to use complex software for all of these.

But the basic logic doesn't change:

Not today's occupancy, but expected future demand, should drive the price decision.

19. Seasonal Pricing Is One of the Starting Points of Revenue Management

Many hotels create their price list like this:

• Low Season
• Mid Season
• High Season

This is useful as a start.

But it is not enough on its own.

Because within the same season:

• Monday,
• Friday,
• Saturday

may not have the same demand.

And the same Saturday can create completely different demand in:

• a normal week,
• a festival,
• a holiday,
• a special event.

That is why:

The season price is a start; demand determines the real price.

20. What Is Day-of-Week Pricing?

It is pricing demand behavior by day of the week.

For example, say the Base BAR is:

6,000 TL.

If the hotel's real data shows weekend demand is stronger:

can result.

But this table does not mean:

“Raise the price because it's Saturday.”

The right question should be:

“Does our hotel's data show that the economic value of Saturday night is higher?”

21. In Revenue Management, Historical Data Is Important but Not Enough on Its Own

Last year, 15 August may have been:

100% full.

Expecting the same result this year can be a mistake.

Because:

• the market may have changed,
• new hotels may have opened,
• flight capacity may have changed,
• an event may have been cancelled,
• the price level may have changed,
• the guest profile may have changed,
• the reservation Lead Time may have changed.

Revenue Management:

does not copy the past; it learns from the past and interprets it together with today's demand signals.

22. Why Is Minimum Stay Used in Revenue Management?

In a high-demand period, a hotel can apply a:

Minimum Stay.

For example, if there is very strong demand for Saturday night:

a Minimum 2 Nights

rule can be applied.

But the aim is not:

to force the guest to stay two nights.

The aim is:

to manage with which stay combinations the limited room inventory will be sold.

A wrong Minimum Stay:

• can create gaps,
• can block demand,
• can reduce revenue.

A right Minimum Stay, however, can:

protect inventory in a high-demand period.

23. What Are CTA and CTD?

Revenue Management can manage inventory not only by price but also by:

reservation conditions.

CTA — Closed to Arrival

Check-In is not accepted on a particular date.

CTD — Closed to Departure

Check-Out is not accepted on a particular date.

These rules:

manage the arrival and departure pattern of reservations instead of closing room sales entirely.

They can be used especially in high-demand periods.

24. Early Booking Doesn't Always Mean a Discount

The aim of early booking can be:

to secure part of future demand early.

But constantly giving a high Early Booking discount:

creates the risk of selling dates that will see high demand early and at too low a price.

That is why Early Booking should be assessed together with:

• season,
• Forecast,
• Lead Time,
• Cancellation,
• past Booking Pace.

25. A Last Minute Price Doesn't Always Have to Be Cheap

This is also a common misconception.

If the hotel has:

10 empty rooms

for tomorrow, lowering the price can be considered.

But if only:

1 room

is left and demand is strong, why discount?

So:

Last Minute = automatic discount

is not the case.

The Last Minute decision should be made with:

Remaining Inventory + Demand + Pickup + Forecast.

26. Why Is Channel Management Important in Revenue Management?

The same room can be sold through:

• the hotel's own website,
• phone,
• Booking.com,
• Expedia,
• an agency,
• a corporate agreement.

But the economic value of all sales is not the same.

For example:

Channel A

Gross ADR: 8,000 TL

Channel cost: 0

Net ADR: about 8,000 TL

Channel B

Gross ADR: 8,000 TL

Commission and sales cost: 1,400 TL

Net ADR: 6,600 TL

Both reservations may show in the PMS at:

an ADR of 8,000 TL.

But the economic value left to the business is different.

27. Why Is Net ADR Important?

Classic ADR is calculated as:

Room Revenue / Rooms Sold.

But from the investor's standpoint, you need to go one step further.

Net ADR

helps to see a more realistic economic value of the room after sales costs.

That is why Revenue Management should ask not only:

“Which channel brings in more reservations?”

but also:

“Which channel leaves us higher-quality revenue?”

28. Why Is Direct Booking Valuable?

Direct Booking:

• can reduce commission costs,
• can build the guest relationship directly,
• can increase data ownership,
• can create Upsell opportunities,
• can make repeat reservations easier.

But:

Direct is not automatically the cheapest channel.

Because Direct Booking also has costs of:

• the website,
• advertising,
• payment,
• the booking engine,
• marketing.

The right approach:

is to compare channel costs with their real economic contribution.

29. What Is ADR?

ADR:

Average Daily Rate

that is, the average daily room price of the rooms sold.

The formula:

ADR = Room Revenue / Rooms Sold

For example:

Room Revenue = 160,000 TL

Rooms Sold = 20

then:

ADR = 8,000 TL.

ADR helps us understand price performance.

But it is not enough on its own.

30. What Is Occupancy?

Occupancy:

shows how much of the sellable room capacity has been used.

The simple form:

Occupancy = Rooms Sold / Available Rooms × 100

For example:

If 16 rooms have been sold in a 20-room hotel:

Occupancy = 80%

But high Occupancy alone doesn't mean high revenue.

31. What Is RevPAR?

RevPAR:

Revenue per Available Room

that is, room revenue per sellable room.

It can be calculated in two ways:

RevPAR = Room Revenue / Available Rooms

or

RevPAR = ADR × Occupancy

For example:

ADR = 8,000 TL

Occupancy = 80%

then:

RevPAR = 6,400 TL.

RevPAR's important advantage:

it combines price and occupancy in a single indicator.

32. Why Can't We Look Only at ADR Either?

A hotel:

can raise ADR a lot.

But if it can't sell rooms:

revenue can fall.

For example:

Scenario A

ADR: 10,000 TL

Occupancy: 30%

Scenario B

ADR: 7,000 TL

Occupancy: 80%

If we look only at ADR, A looks more successful.

But for the revenue-generating performance of the capacity, you need indicators such as:

RevPAR.

That is why:

a high price alone is not Revenue Management success.

33. Is the Aim of Revenue Management 100% Occupancy?

No.

Sometimes 100% occupancy:

can even be a sign of a missed revenue opportunity.

For example, if the hotel fills up every Saturday:

30 days in advance,

but keeps receiving reservation requests throughout the last 30 days,

the prices may need re-evaluating.

The opposite is also possible.

If the hotel insists on high prices and stays at:

40% occupancy

the price strategy may be too aggressive.

So the goal is:

not Maximum Occupancy but Optimal Revenue.

34. Is Revenue Management Necessary in a Small Boutique Hotel?

Absolutely.

In fact, in small hotels, because there are few rooms, the economic value of each room may be more visible.

In a 10-room hotel:

1 room = 10% of capacity.

In a 20-room hotel:

1 room = 5%.

So a few wrongly priced rooms:

can have a significant effect on total revenue.

A small hotel doesn't need to build a Revenue Management system as complex as a large chain's.

But it should be able to answer these questions:

• Which dates fill up fast?
• Which dates are weak?
• Which days are more valuable?
• How is Pickup?
• How is Booking Pace?
• What is the Forecast?
• Which room type sells out first?
• Which channel is more profitable?
• Is the BAR right?

35. A Minimum Revenue Management System for a Small Boutique Hotel

This structure can be enough to start with:

1. Season Calendar

Define the demand periods of the year.

2. Base BAR

Create a base price for each period.

3. Day-of-Week

Differentiate the days of the week.

4. OTB

Track future reservations.

5. Pickup

Monitor reservation movement over the last 1, 7, 14, and 30 days.

6. Booking Pace

Learn how far in advance reservations arrive.

7. Forecast

Forecast future occupancy.

8. Rate Adjustment

Update prices according to the data.

9. Channel Mix

Track the sales channels.

10. KPI

Monitor Occupancy, ADR, Net ADR, and RevPAR.

This structure alone takes the hotel far beyond the level of:

“We opened the seasonal price list, now we wait for reservations.”

36. Is Revenue Management Done Daily?

Revenue Management is not a task where you set a price once and leave it.

Demand changes constantly.

That is why near dates in particular should be monitored regularly.

For example, the daily check can focus on:

• the next 30 days,
• high-demand dates,
• Pickup,
• critical inventory,
• price changes.

A weekly Revenue Review can be broader:

• 30 / 60 / 90 days,
• Booking Pace,
• Forecast,
• channel performance,
• ADR,
• RevPAR,
• campaigns,
• Restrictions.

37. What Should Be Looked at in the Daily Revenue Check?

A practical checklist:

• ☐ OTB for the next 30–90 days was checked.
• ☐ Pickup for the last 24 hours was checked.
• ☐ Pickup for the last 7 days was checked.
• ☐ Accelerating dates were identified.
• ☐ Slowing dates were identified.
• ☐ Cancellation movement was checked.
• ☐ Demand by room type was checked.
• ☐ Remaining Inventory was checked.
• ☐ BAR was checked.
• ☐ ADR was checked.
• ☐ Net ADR was checked.
• ☐ The Forecast was updated.
• ☐ Necessary Rate changes were considered.
• ☐ The need for Minimum Stay / CTA / CTD was checked.
• ☐ Channel inventory was checked.
• ☐ The decision taken and its rationale were recorded.

38. Which Dates Should a Revenue Manager Prioritize?

It is not necessary to give every date the same time.

In particular:

Rapidly Filling Dates

There may be an opportunity to raise the price or close discounts.

Dates Slower than Expected

Demand generation or a price correction may be needed.

Critical Inventory Dates

Few rooms may remain.

Event Dates

Higher-than-normal demand can occur.

Shoulder Dates

Gaps can remain around strong days.

Room Type Imbalance

One room type may sell out quickly while another stays empty.

The job of Revenue Management:

is not to report the problem after the date has passed but to take action before the date arrives.

39. One of the Biggest Mistakes in Revenue Management: Pricing by Looking at the Competitor

Competitor prices are a useful market signal.

But they are not a price strategy on their own.

Just because a competitor is selling at:

10,000 TL

it doesn't follow that you should be at 10,000 TL too.

Because:

• product quality,
• location,
• room size,
• brand,
• Review Score,
• breakfast,
• service,
• room type,
• demand,
• channel distribution

may differ.

More importantly:

A competitor listing a price of 10,000 TL doesn't mean they sell rooms at that price.

Revenue Management watches the competitor but:

puts its own demand data at the center.

40. A Discount Is Not Revenue Management

Occupancy is weak.

The first reflex should not be:

“Let's do a 20% discount.”

The problem must be found first.

Is there no demand?

Is visibility low?

Is the price high?

Has Booking Pace changed?

Has competitor supply increased?

Is Minimum Stay blocking demand?

Is the wrong Rate Plan open?

Is OTA Inventory closed?

Is website conversion low?

Is the wrong room type being featured?

Revenue Management:

diagnoses the problem first, then chooses the action.

A discount is only one of the options.

41. Raising the Price at Every High Demand Is Not Right Either

Pickup accelerated.

Raising the price right away may be tempting.

But first, the following should be looked at:

• how many rooms are left?
• how many days until the date?
• how is the historical Pace?
• what is the Cancellation risk?
• what is the Forecast?
• which room type is selling?
• how is the channel distribution?
• is there an event?

Revenue Management:

is not a single-variable decision system.

42. Keep a Decision Log in Revenue Management

For example:

15 August

BAR:

7,500 TL → 8,500 TL

Why?

• OTB 70%
• 30 days to go
• Last 7 days' Pickup +5
• Above historical Pace
• Forecast 95%

If this decision is recorded, later the question:

“Why did we raise the price and what was the result?”

can be answered.

That way the hotel produces its own Revenue knowledge over time.

43. Revenue Management Is a Learning System

The professional cycle:

Data → Analysis → Forecast → Decision → Rate / Inventory Action → Market Response → Pickup → Result → Review → Learning → New Decision

As this cycle repeats each season, the hotel learns its own demand behavior better.

44. Revenue Management Maturity Levels

A hotel's system can be thought of roughly at four levels.

A small boutique hotel may not need a very complex Revenue department.

But the goal should be:

not to stay at Level 1.

45. Core Working Files for Revenue Management

In a professional system, these files can be created:

Inventory

• Room Inventory
• Room Type Inventory
• Availability

Rates

• Rate Plan Matrix
• BAR Calendar
• Seasonal Rates
• Restrictions

Demand

• Demand Calendar
• Pickup Report
• Booking Pace
• Forecast
• High Demand Dates
• Low Demand Dates

Channels

• OTA Performance
• Channel Mix
• Commission
• Channel Cost
• Direct Booking

Revenue

• ADR
• Net ADR
• RevPAR
• Net RevPAR
• TRevPAR

Management

• Revenue Dashboard
• Daily Revenue Review
• Weekly Revenue Meeting
• Action Log

46. What Should Be on the Revenue Management Dashboard?

Core areas the investor should be able to see within a few minutes:

If management can't answer these questions quickly:

the Revenue Management system is not yet visible enough.

47. How Should an Investor Look at Revenue Management?

The investor asking the Revenue Manager:

“Why aren't we 100% full?”

is not always the right question.

Better questions:

“How is RevPAR?”

“How is Net ADR?”

“How is Pickup?”

“How is Booking Pace compared with last year?”

“What is the Forecast?”

“On which dates is demand accelerating?”

“Which channels leave us higher net revenue?”

“On which dates are we missing a price opportunity?”

“On which dates is the price staying above demand?”

These questions take management:

out of an occupancy mindset

and into:

a revenue mindset.

48. 12 Big Mistakes in Revenue Management

1. Measuring success by Occupancy alone

2. Setting prices at the start of the year and never changing them during the season

3. Looking only at competitor prices

4. Not tracking Pickup

5. Not knowing Booking Pace

6. Not forecasting

7. Accepting 100% occupancy as success in every case

8. Discounting automatically when demand is weak

9. Raising prices mechanically when demand is high

10. Ignoring channel costs

11. Looking at ADR and not tracking Net ADR

12. Not measuring the results of Revenue decisions taken

What these mistakes have in common:

decisions being made out of habit rather than demand data.

49. 10 Decision Gates for Revenue Management

Decision Gate 1

Do we know which dates are strong and which are weak?

Decision Gate 2

Can we see the current OTB for each date?

Decision Gate 3

Do we track Pickup speed?

Decision Gate 4

Can we compare Booking Pace with past periods?

Decision Gate 5

Do we produce a Forecast?

Decision Gate 6

Does the BAR change according to demand?

Decision Gate 7

Is Remaining Inventory factored into the price decision?

Decision Gate 8

Are channel costs and Net ADR measured?

Decision Gate 9

Are Occupancy + ADR + RevPAR read together?

Decision Gate 10

Is the result of each Revenue decision evaluated afterward?

If the answer to most of these questions is:

“No.”

the hotel is most likely not doing Revenue Management;

it is setting room prices.

50. Can We Reduce the Whole Logic of Revenue Management to a Single Formula?

There is no single mathematical formula.

But we can summarize the management logic like this:

Right Revenue = Right Demand Reading × Right Price × Right Inventory Decision × Right Timing × Right Channel

And the operational flow of the whole system:

Demand → OTB → Pickup → Booking Pace → Forecast → Remaining Inventory → BAR → Restrictions → Channel → Reservation → ADR / Net ADR → RevPAR → Revenue Review → New Decision

This is the essence of Revenue Management.

Conclusion: In Hospitality, the Aim Is Not to Fill Rooms but to Manage Inventory Correctly

In hotel management, occupancy is important.

But it is not success on its own.

Because:

100% occupancy may have been achieved at a low price.

80% occupancy can produce higher revenue.

A high ADR can give a poor result because of low demand.

A high gross ADR can leave a low Net ADR because of high channel costs.

That is why, after the question:

“How many rooms did we sell?”

the investor must always ask:

“At what price, through which channel, at what cost, and under what demand conditions did we sell?”

And even more importantly:

“How should we sell our remaining rooms from here?”

This is the real subject of Revenue Management.

It is not reporting the past:

it is reading future demand to change today's decision.

That is why a good Revenue Management system:

tries not to maximize Occupancy but to optimize the economic value of limited room inventory.

Occupancy is one of the results.

But the goal is revenue.

Hotel Investment Guide — Volume V

This article is based on the Reservations and Revenue Management system I cover in Hotel Investment Guide — Volume V: Operations.

In Volume V, Revenue Management is treated as a holistic revenue management system together with:

• room inventory,
• BAR,
• seasonal pricing,
• Day-of-Week Pricing,
• Minimum Stay,
• CTA / CTD,
• Early Booking,
• Last Minute,
• occupancy-based pricing,
• Demand Forecasting,
• Pickup,
• Booking Pace,
• channel management,
• ADR,
• Net ADR,
• RevPAR,
• Net RevPAR,
• TRevPAR.