Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
286

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To illustrate the importance of market codes to revenue management, consider
Figure 6. Note that the Altoona Hotel has an overall ADR of $100 ($600,000 
6,000 rooms). This ADR, however, is a combination of three distinctly different mar-
ket code ADRs. The Altoona sells to transient guests and also offers discounted group
rooms to large-volume purchasers. In addition, the hotel has signed a two-year agree-
ment with an airline serving the local airport to house all the airline’s flight crews and
its distressed passengers who require overnight lodging. At the Altoona, airline-rented
rooms are given the distinct PMS market-code of contract. In January, guests coded
into the PMS as transient generated an ADR of $125. The group market-code rooms
generated an ADR of $85 and the contract market-code achieved an ADR of $70.