Hospitality: Hotel Management & Tourism

Revenue management (RM) is the science of selling the right room to the right GST at the right price through the right channel at the right time. Core metrics: OCC (occupancy rate = rooms sold / rooms available), ADR (average daily rate = room revenue / rooms sold), RevPAR (revenue per available room = OCC x ADR or total room revenue / available rooms). RevPAR is the industry's north star — it captures both pricing power & demand.

Dynamic pricing strategies: BAR (Best Available Rate) is the lowest unrestricted rate for a given date. Rate fences create segmentation — advance purchase (non-refundable, 10-20% discount), length of stay requirements, package bundling, corporate negotiated rates, OTA vs direct channel pricing. Yield management adjusts rates based on demand forecasts, pace reports (booking velocity vs same period last year), & competitor positioning. Always maintain rate parity across public channels per OTA agreements — but drive direct bookings through added value (loyalty points, room upgrades, flexible cancellation).

Channel management: direct channels (brand.com, call center, walk-in) have lowest acquisition cost. OTA channels (Booking, Expedia, etc.) charge 15-25% commission but provide visibility & reach. GDS (Global Distribution System — Amadeus, Sabre, Travelport) serves travel agents & corporate bookings. Metasearch (Google Hotels, Trivago, Kayak) drives comparison shopping — bid-based cost model. Channel mix optimization targets 40-60% direct bookings for mature properties. CRS (Central Reservation System) & channel manager sync rates/inventory across all channels in real-time to prevent overbooking.