Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
Market code
Track code
PMS code
Transient
Leisure
TRL
Corporate
TRC
Government
TRG
Group
Leisure
GRL
Corporate
GRC
Government
GRG
Contract
Airline
CTA
FIGURE 7
Track and PMS codes for the Altoona Hotel.
289

---

into the PMS, and the reservation fields containing them should be filled out each
time a room reservation is made. This segmentation is important to revenue man-
agers for several reasons:
•
Market size variation. Hotels are commonly referred to being either business-
or leisure-oriented. Although each hotel attracts a specific clientele, most hotels
find that they actually serve multiple types of guests. For example, a large con-
vention hotel might serve both corporate and leisure groups. Corporations may
conduct employee training sessions, annual shareholder meetings, or events
designed to reward the company’s best performers. Leisure groups may meet for
annual conventions, reunions, and social events. If a hotel has the amenities
desired by corporate groups, this market segment may be most important. For
hotels with extensive options for on-site leisure activities, leisure groups may
represent a larger market. Some hotels market heavily to business travelers dur-
ing the week and attract leisure travelers on the weekend. Only by tracking
guest types can hoteliers fully understand the markets they are serving and con-
sider tactics to attract larger and potentially more profitable market segments.
•
Variability in ADR. Historically, room rates charged by hotels vary by track
segments. For example, many hotels offer government workers a discounted
room rate based on the worker’s per diem. As a result, the ADR associated with
government travelers typically is lower than that of other guests. For most
hotels, group ADRs tend to be lower than the rate for transient travelers.
Consumers expect, quite naturally, to receive a reduced room rate if they buy
several guestrooms at a one time. If revenue managers are to make informed
decisions about the wisdom of allocating rooms between group and transient