From Revenue Management to Revenue Strategy

by Patrick Bosworth, co-founder and CEO |

It’s taken a long time to get revenue management into the lexicon of the hotel industry, but now that we’re finally there, let’s talk about redefining it. Revenue management—yield management, price optimization or however it’s described from company to company—will always be a critical function at every hotel, and it’s great the majority of the industry recognizes this. But revenue management has come to be defined by managing rates, which isn’t exactly what Robert Cross first imagined in 1997 when he called for a marketing renaissance in his book, “Revenue Management: Hard-Core Tactics for Market Domination.”

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Good RM starts with segmentation

by Mark Brandau, Director of Content |
Earlier this year, Marco detailed why fixed-tier or BAR pricing is a revenue management mistake. The point of his Time to Lower the Bar for Good post was that dynamic pricing and yielding segments individually is the best way to optimize revenue, and pricing each segment as a percent off the best available rate (BAR) is the fastest way to lose money. He has since written about the importance of forecasting and how many hotels mistake inventory management for revenue management. Read More

Get real about your forecast error

by Marco Benvenuti, Chief Marketing and Strategy Officer and Co-Founder |
Too many people in the hotel industry who purport to be revenue management experts don’t understand what forecasting error is or how to accurately calculate it. Or if they do, they’re ignoring it. That’s the only conclusion I can come to when I read about people expecting or getting an unconstrained demand forecast on average 98% right six months out. That’s practically impossible. Read More

Hotel Revenue Management Isn’t a Zero Sum Game

by Patrick Bosworth, co-founder and CEO |
A recent story in Tnooz made me think about a question I frequently get while talking to clients and customers about Duetto Edge: “What if my competitor is also using Duetto Edge, or if everyone is using a sophisticated revenue management tool like that?” Read More

Time to Lower the BAR for Good

by Marco Benvenuti, Chief Marketing and Strategy Officer and Co-Founder |

The primary reason so many hotels and chains continue to revenue manage using a fixed-tier best-available-rate (BAR) pricing approach is its simplicity. It’s easy for hotels to implement and then manage. But that simplicity is also the exact reason it’s not the best choice.

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