The first step towards implementation of the apt revenue management system is to be able to comprehend the amount of competition in the market. It is important for hotel owners to understand the work ethics of their contemporaries, more than their own.

1. How to Apply Principles of Hotel Revenue Management?
Currently, the numbers of hotel revenue management theories that exist in the market
are almost at par with the number of people using it. Since revenue management is also
known as yield management, different people perceive it in different ways. The tasks that
are implemented in revenue management can work wonders if applied rightly and
constantly.
Management of the business revenues flow process should conform to the operation of
the concerned hotel. Special importance should be given to the goal that one wants to
achieve in this regard. The main objective of revenue management system should be
maximization of the hotel revenue by making proper use of the available pockets of
occupancy demand.
Application of Revenue Management System in the Industry:
Some hotels consider revenue management an important aspect of their business and
allocate appropriate resources. Others restrict the management process to the front
office, reservations department or the local management.
The primary matter of concern here is to find that many of the people responsible for
revenue management have no formal revenue management training, no definite goals
or any means to accomplish their target.
Deduce the level of Competition
The first step towards implementation of the apt revenue management system is to be
able to comprehend the amount of competition in the market. It is important for hotel
owners to understand the work ethics of their contemporaries, more than their own. A
good way to start determining the potential of your opponent would be to follow the
weekly and monthly editions of the Smith Travel research. It helps comparing data like
average rate, occupancy and cost per available room of your hotel and its parallels. This
will help deduce the actual position of your hotel in the market and encourage you to set
targets that you want to achieve.

2. Principles of Traditional Yield Management:
Traditional yield management involves settling on room rates and inventories based on
their demand. Such alterations include historic data, present room reservations,
prediction and some amount of immediate beliefs.
Historic data may often point to the fact that occupancy rates are higher during certain
times in the year, irrespective of the current scenario. The primary concept here it that
hotel administrations must increase room rates as the demand for occupancy increases.
Faulty Measures of Revenue Management:
Generally, you will be able to figure out hotels that use poor revenue management
systems. Initially, many of these hotels may keep high rates for rooms. Eventually,
however, the rates are reduced when the expected occupancy rates are not achieved.
Thus, it can be proved that revenue management system need not be complicated to get
desired results. In fact, hotels must assign such duties to people who have interest in this
field and are quite good with numbers. If there is no one to shoulder this responsibility,
hotels must seek professionals adept in Revenue Management Consulting, as such
investments could work magic in future.