These are best practices of revenue management- rate discipline, information usage, and price prediction- are integral to a comprehensive revenue management strategy.

1. est Practices in Revenueest Practices in Revenue
ManagementManagement

2. General revenue managementGeneral revenue management
and strategic pricingand strategic pricing
Just as detailed historical analysis might have
represented best pricing practice in the early 1990s,
stock market­influenced algorithms reside on the
cutting edge of today’s pricing thought. Similarly,
the emphasis on occupancy or average daily rate
that might have dominated revenue managers’
attitudes two decades ago has given way to the
primacy of revenue per available room (RevPAR).
Examples like this abound, and in the next couple of
columns we’ll be sharing all of our revenue
management expertise with our readers, in a series
that examines the current best practices of revenue
management.

3. •Pricing is an aspect of revenue management that
features several intriguing and innovative
developments in recent years. While pricing has
always been a significant driver affecting both
occupancy and RevPAR, in the current
environment of unprecedented price
transparency, rates have assumed an even
greater role. Determining the optimal rate to
present to a potential customer has therefore
become one of the single most important aspects

4. Stock Market PricingStock Market Pricing
•The principle of optimum The principle of optimum
pricing is familiar to pricing is familiar to
financial experts, financial experts,
particularly those that work particularly those that work
with commodities. For with commodities. For
hotels, it’s a less familiar hotels, it’s a less familiar
concept, but there is no concept, but there is no
reason this should be so. reason this should be so.
High­performing hotels High­performing hotels
utilize a comprehensive utilize a comprehensive
revenue management revenue management
system that sets prices based system that sets prices based
on both historical on both historical
considerations and current considerations and current
market conditions, giving it market conditions, giving it
twice the range of more twice the range of more
traditional pricing strategies.traditional pricing strategies.

5. AutomationAutomation
•Automation is the best practice that often Automation is the best practice that often
makes or breaks a pricing strategy or the pricing makes or breaks a pricing strategy or the pricing
aspect of a revenue management system. aspect of a revenue management system.
• An algorithm­based computer An algorithm­based computer
program can recognize, by combing through program can recognize, by combing through
data faster and by extrapolating trends and data faster and by extrapolating trends and
tendencies with less raw input, which channel is tendencies with less raw input, which channel is
performing best, and allocate inventory there at performing best, and allocate inventory there at
the appropriate price.the appropriate price.

6. Conclusion
•Each of these best practices of
revenue management­ rate discipline,
information usage, and price
prediction­ are integral to a
comprehensive revenue management
strategy

7. Thank You
Mihran
Kalaydjian