Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
Providing exceptionally well-cleaned rooms helps the front office to sell a hotel’s rooms at
the highest possible rate.
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At Noel’s hotel, the news about the meeting was immediately passed from the
general manager to the hotel’s DOSM who, without delay, routed the information to
Noel, the FOM and revenue manager. She had been at the hotel for nearly 10 years
and well remembered the last time the group met in town. In her role as a front desk
agent, Noel had checked the association’s members in and out of the property, and
she recalled them as a friendly and good-natured group.
Three months after the CVB announcement, JeAnna, who also served as her
hotel’s FOM and revenue manager, heard about the group’s selection of her city dur-
ing a quarterly sales meeting with the hotel’s DOSM. JeAnna had joined the hotel
from another city just five months previously.
The year passed, the State Association of Retired College Professors met, and
Figure 1 details the RevPar achievements of the two hotels. The results in Figure 1
are interesting for at least two reasons:
•
JeAnna’s hotel achieved an occupancy percentage higher than Noel’s hotel’s on
each of the group’s three meeting days.
•
RevPar at Noel’s hotel for the three meeting days and the day before and after
the meeting was 43.5 percent higher than at JeAnna’s hotel:
The total revenue generated by the two hotels can be computed by multiplying
each property’s RevPar (from Figure 1) times the number of rooms available to sell
(250 rooms 
×
5 nights 
1,250) as follows: