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Revenue management

GLOSSARY

Pricing

Revenue management

Revenue management

Revenue management

THE SHORT VERSION

Hotel revenue management uses demand information to guide decisions about room prices, availability and distribution.

Hotel revenue management uses demand information to guide decisions about room prices, availability and distribution.

Revenue management combines demand forecasting with decisions about pricing, availability and sales channels. IDeaS includes factors such as seasonality, length of stay and time before arrival in its explanation. The aim is to improve the commercial use of available inventory, rather than to apply one fixed room price. Source: IDeaS: Revenue management fundamentals

Start with a clear commercial question

Choose the dates and room types under review, then bring together booked demand, remaining availability and the rates on offer. Record the reason for a proposed change. This gives colleagues a way to assess the decision using the same information.

Review the outcome with context

Compare room revenue, occupancy and distribution costs over an agreed period. Keep notes on events, restrictions and changes in available inventory. This helps explain the result without attributing every movement to a single pricing decision or assuming a forecast is certain.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.

Sources

The official pages behind this explanation. This is general information, not legal advice, and rules change, so check the latest version.