Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
MODERN FRONT OFFICE ISSUES AND TACTICS
Hubbart? What Hubbart?
The events of September 11, 2001 devastated the hotel business in New York City in the
short run. Not surprisingly, in the immediate aftermath of the attack that destroyed the
World Trade Center, convention groups canceled their events, business and leisure travel-
ers to the area canceled most of their trips, and occupancy rates plummeted. The rates sug-
gested by formulas for a specific property were irrelevant; rates were affected by events,
and all rates went down.
On a smaller scale, but in response to significant events in their market areas, modern
hoteliers must manage rates not on the basis of what conditions should be but on what they
are. Competitive hotels will be doing the same. If a hotel is to obtain a fair share of the mar-
ket, its revenue manager must respond—quickly—to the events and circumstances that
affect room rates in either a positive or negative direction.
proper room rate to charge, however, is more complex and more important than it has
ever been. The reasons for the change in rate-setting “rules” are straightforward: the
consumer’s use of the Internet and the competition’s use of the Internet.
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Assess rate comparisons based on room type
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Analyze rate comparisons based on market code
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Develop rate comparisons based on track code
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Group and print data by competitive hotel, specific travel Web sites, arrival
dates, and other factors important to the revenue manager