Pearson New International Edition International pcl tp indd 1

MANAGING FORECAST DATA
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Chapter Outline
ROLE OF THE REVENUE MANAGER
Revenue Management
Room Rate Management
Room Rate Economics
Rate Types
Rate Determination
Traditional Pricing Strategies
Web-Influenced Pricing Strategies
REVENUE MANAGEMENT TOOLS
Room Types
Market Codes
Track Codes
REVENUE MANAGEMENT ESSENTIALS
Managing Occupancy
Managing ADR
Evaluating Effectiveness
Occupancy Index
ADR Index
RevPar Index
GoPar
YIELD MANAGEMENT
Philosophy
Implementation
Techniques
Revenue Management
From Chapter 6 of Professional Front Office Management, First Edition, Robert H. Woods,
Jack D. Ninemeier, David K. Hayes, Michele A. Austin. Copyright © 2007 by Pearson Education, Inc.
Published by Pearson Prentice Hall. All rights reserved.
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Chapter Preview
A hotel’s ability to effectively compete and financially prosper in today’s lodging mar-
ket is increasingly tied to the skill of its staff in pricing and selling its guestrooms.
This complex process, called revenue management, is the topic of this chapter.
In some hotels, the FOM or a subordinate may be solely responsible for revenue
management; in other properties, the duty may be shared by the FOM, other front
office staff, the general manager, and the director of sales and marketing. In all cases,
those responsible for revenue management must understand the economics of room
rates and carefully consider the relationships between supply and demand and
between determining and managing room rates. Both traditional and modern meth-
ods of room rate determination are involved.
The chapter reviews tactics to price different types of rooms and to make deci-
sions related to market and track codes. The essential goal of a revenue manager is to
maximize RevPar. Therefore, the management of occupancy levels and ADR are ana-
lyzed, as is GoPar—a new and increasingly popular method of evaluating the effec-
tiveness of revenue management tactics.
The chapter concludes with a thorough examination of a revenue-enhancing
methodology first used in the airline industry: yield management, a term whose use