Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
Hotels that are grouped in close proximity may carefully monitor each other’s room rates to
best implement their competitive pricing strategies.
P
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ations,
Inc.
280

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Today, revenue managers must determine room rates based on the realities of a
challenging environment unknown to previous generations of hoteliers. To better
understand today’s rate determination realities, visit a consumer-friendly Web site
such as www.sidestep.com. Within seconds users can compare alternative room rates
for all of the hotels in their desired travel area. Any traveler with access to the Web
can compare the room rate offered by one revenue manager to the rates offered by all
of the competitors. Users can contrast the prices of well-known hotel brands and
franchises and independents. They can then book their rooms online, as rapidly
increasing numbers of travelers choose to do.
Just as consumers can easily compare prices, so can a hotel’s major competitors.
Gone are the days when night auditors or others in the Front Office staff conducted
the nightly call-around and used the information obtained (often of questionable
accuracy) to make decisions about what the hotel’s rates should be.