Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
Occupancy
Hotel
Rooms available 
Percentage
ADR
RevPar
Low-priced competitor
300
75%
$100.00
$75.00
Altoona
300
50%
$150.00
$75.00
High-priced competitor
300
40%
$187.50
$75.00
FIGURE 16
RevPar comparisons for the Altoona Hotel and two competitors.
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It is necessary to gamble at times. An aggressive revenue manager can make a
significant difference in a hotel’s RevPar. Overbook on high-demand nights but
do so based on known no-show data for similar dates. Minimize costly walks.
REVENUE MANAGEMENT
SECTION REVIEW AND DISCUSSION QUESTIONS
Section Objective:
Provide an overview of yield management philosophy and
describe procedures to help maximize long- and short-term RevPar using yield man-
agement techniques.