Proactive Revenue Management (Optimization)
By Juston Parker President & CEO, Parker Hospitality Group, Inc. | June 15, 2010
The basics of Revenue Management begin far before the guest comes. As Warren Buffett stated, "Forecasting rain doesn't count, building arks does?"
As we go through the throws of the budget and planning season, people consistently wonder how does one look into the future to get more accurate budgetary planning and get good data for revenue strategies. Now, is always a good time to start planning.
There is one fundamental difference between Revenue Management and Revenue Optimization, the former is passive and the latter is active. More than that, it's proactive. Revenue Optimization looks into the future and builds a plan to effectively create revenue and harness demand to fully return the best revenues possible. This is the goal of all who do Revenue Management (Optimization).
So, what are the keys to proactive Revenue Management? What can move a property from Revenue Management to Revenue Optimization? Let's look at the process and learn how to maximize our return.
PHASES OF REVENUE MANAGEMENT