Pearson New International Edition International pcl tp indd 1

FRONT OFFICE SEMANTICS
Displace (revenue):
To substitute one source of revenue for another.
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Revenue Manager, FOM, and DOSM. Every individual reservation made
through the hotel’s front office, as well as every group room sale made by a
hotel’s sales department, affects the property’s revenue forecasts and, therefore,
affects rate management. Methods used by the revenue manager, FOM, and
REVENUE MANAGEMENT
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DOSM to share information and to coordinate their activities vary between
properties. Nevertheless, collaboration can be achieved through periodic
updates that involve all members of the revenue management team. Failure to
coordinate efforts can result in presentation of an inconsistent or even inco-
herent rate message. In some cases, consumers may correctly perceive that a
hotel that cannot manage to get its pricing structure straight may well have the
same problem when it comes to serving them as guests.
Management of room rates is a critical activity. Properly coordinated within the
hotel, it helps to maximize RevPar. Improperly done, it can damage a hotel’s reputa-
tion, alienate guests, create unnecessary rate resistance, and actually reduce occupan-
cies and ADRs.