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Tourism & Hospitality vocabulary · Sales & Revenue

Revenue management

Meaning in tourism & hospitality, with examples

/ˈrevənjuː ˌmænɪdʒmənt/nounAdvanced term

In tourism & hospitality, revenue management means: Setting the right prices and selling conditions for each room type, date and sales channel to earn as much as possible from the hotel's rooms.

In Turkish: gelir yönetimi

How it is used

The revenue manager studies demand, booking pace, competitor prices and local events, then changes rates and restrictions such as minimum stay or stop sale. Prices that change with demand are called dynamic pricing. Many hotels use software, but decisions are still discussed in weekly revenue meetings.

Example sentences

  1. Revenue management decided to close the cheapest rate for the festival weekend.

  2. Good revenue management means selling the right room to the right guest at the right price.

Common collocations

  • revenue management system
  • revenue manager
  • revenue meeting
  • dynamic pricing
  • ADRShort for average daily rate: the average price paid for each room sold, calculated as room revenue divided by the number of rooms sold.
  • RevPARShort for revenue per available room: total room revenue divided by all rooms available for sale, or ADR multiplied by the occupancy rate.
  • occupancy rateThe percentage of a hotel's available rooms that are sold over a certain period, such as a night, a month or a season.
  • stop saleA message from a hotel telling tour operators and agencies to stop selling rooms for certain dates or room types, usually because it is nearly full.
  • minimum stayThe smallest number of nights a guest must book to get a room or a certain rate, often used on busy dates.

More terms: Sales & Revenue

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