All posts in Revenue Management

In Revenue Management, Never Being Right is Better than Sometimes Being Right

Categories: Analytics, Data, Revenue Management, Strategic Planning
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by Robert Hernandez

One of the most difficult concepts to explain in Mathematical Rate Setting is that the optimal rate is the one that has the best chance of maximizing revenue over the long term, not necessarily in the short term.  In other words, it is the rate that has the best chance of delivering the optimal revenue if the same rate decision where repeated many times.  That does not mean that it is the best rate for any one time that you make Read more

How to Become a 5-Tool Hotel Revenue Manager

Categories: Analytics, Hotel Analytics, Revenue Management
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by Robert Hernandez

In baseball, a 5-Tool player is one that excels at the skills of throwing, catching, running, hitting for power, and hitting for average. While they are rare, these players are considered the top athletes in the game and therefore command the highest salaries.  In Revenue Management the same is true for the most aggressively recruited and highest paid RMs.  They are the ones that have the perfect combination of skills which allow them to take any hotel company’s RM function Read more

The 5 Results Hotel Revenue Management Can’t Deliver

Categories: Revenue Management
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by Robert Hernandez

Believe or not, after almost two decades of the great Revenue Management proliferation throughout the hotel industry(2004-now), the vast majority of properties are still just waking up to the potential benefits of RM.  That’s a good thing, but unfortunately, because of their inexperience with RM, many hoteliers have wild misconceptions about what RM can actually deliver.  While it is true that Revenue Management is now the most critical function in the hotel industry, it certainly is not a panacea that Read more

What Total Revenue Management is Not

Categories: Hotel Analytics, Restaurant, Revenue Management, Spa, Total Revenue Management
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by Robert Hernandez

Total Revenue Management is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it” (adapted from a quote by Dan Ariely of Duke University) At a recent hotel conference I had the opportunity to speak to Revenue Managers from the entire spectrum.  Some had a lot of experience and some where newbies.  Some came from corporate and some from independent properties.  Yet, Read more

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