Pearson New International Edition International pcl tp indd 1

ROADMAP 2
Objective 1
Explain the revenue 
manager’s role in 
establishing room rates
by applying information 
about rate types and rate 
determination factors and 
by considering traditional 
and Web-based pricing 
strategies.
Objective 3
Present tactics used by 
revenue managers to 
influence their hotel’s 
occupancy rates and 
average daily rates and 
review how to evaluate 
the success of tactics to 
manage occupancy
and ADR.
Objective 2
Discuss how revenue 
managers use
information about
room types, market 
codes, and track
codes to help
maximize RevPar.
Objective 4
Provide an overview
of yield management 
philosophy and describe 
procedures to help 
maximize long- and 
short-term RevPar using 
yield management 
techniques.
Role of Revenue Manager: 
• Revenue Management 
• Room Rate Mgmt. 
• Room Rate Economics
Revenue Management 
Tools
Revenue Management 
Essentials
Yield Management
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these tools. Education, experience, and talent are essential personal traits, but all rev-
enue managers can use additional RevPar maximizing tools to their hotel’s advantage.
As noted in Roadmap 2, this section of the chapter reviews the three most important
tools of revenue management: room types, market codes, and track codes.
Room Types
In the revenue manager’s ideal world, every guest making a reservation would want
the highest-priced room available when the reservation was requested. In fact, many
guests seek the lowest-cost room available, and it is a challenge for the reservations
agent or front desk agent to upsell rooms to the greatest degree possible. Doing so
benefits the hotel because of the increased ADR, and the guest, who will have pur-
chased a room that, although more expensive, will better meet his or her needs.
Different room types do not necessarily sell at different ADRs. Most hotels will,
for the same basic bed type, charge the same rate for a smoking-permitted room as
for a nonsmoking room. Normally, however, revenue managers in hotels with legiti-
mate and explainable multiple room types can create an effective upselling program
to increase RevPar.