Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
Hotels can define their guests’ unique characteristics by using track and market codes.
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travelers, they must know the specific ADR likely to be associated with the
potential group or transient sale.
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Variability in date demand. Some track segments travel at different times than
do others. Shoulder dates vary by hotel. Business travel is strongest though the
week and lighter on weekends. In many hotels, leisure travelers make up the
largest part of weekend and summer business.
FRONT OFFICE SEMANTICS
Shoulder date:
Hotel term for a day, or even a season, between two busier time periods. For example,
in a specific hotel, Thursday may be a slower shoulder date between the busy weekdays (Monday,
Tuesday, and Wednesday) and the busy weekends (Friday and Saturday).
Similarly, the actual day of the year may affect who visits a hotel. Few
business travelers, for example, travel overnight on the Thursday on which
Americans traditionally celebrate Thanksgiving. Most national holidays
result in reduced business travel. Those same holidays may, however, result in
increased leisure travel as people visit their families and friends. Every hotel
is unique, and the use of track codes allow revenue managers to better pre-
dict who is coming to their hotels as well as when these travelers are most
likely to arrive.
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Variation in room (bed) type demand. For hotels with a mix of room types, track
codes are important because different track segments frequently prefer differ-
ent room types. Most often, these preferences relate to bed configuration.
Given a choice between a king-bedded room and one with two double beds,
most business travelers will select the room with the king-size bed. Many rev-
enue managers use this information to recommend that king-bedded rooms
sell for a premium over double-bedded rooms during the peak business travel
nights (Monday through Thursday). On the other hand, families traveling for
leisure activities typically prefer double-bedded rooms. Many revenue man-
agers sell this type of room at a premium during weekends or at other times
when leisure travelers are generating the greatest room demand.
Track code segmentation is also important to the individual responsible for the
coordinating the hotel’s sales and marketing efforts, because it provides information
about the overall effectiveness of the hotel’s sales team. Analysis of travelers’ track
codes can lead to decisions about where additional sales efforts should be expended
and about where, if at all, current marketing efforts should be adjusted or charged.