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Revenue Management Fundamentals
Learn how hotels forecast demand, price rooms, and evaluate business.
This collection contains 10 connected articles. Foundational concepts appear first so readers can build context before moving into operational and advanced topics.
What Is Hotel Revenue Management?
Hotel revenue management is the disciplined practice of forecasting demand and using price, availability, inventory controls, and distribution decisions to sell hotel capacity in a way that supports the best achievable revenue and long-term business mix.
Revenue Management · Pricing and Rate StrategyWhat Is BAR Pricing?
Best available rate (BAR) commonly refers to the lowest publicly available, generally unrestricted rate offered for a specific room type and stay date at a given time. Hotels often use BAR as a flexible public-rate baseline from which other rates are derived or compared.
Revenue Management · Pricing and Rate StrategyWhat Is Dynamic Pricing?
Dynamic pricing is the practice of changing hotel room prices over time in response to demand, remaining inventory, booking patterns, market conditions, and the hotel’s commercial strategy.
Revenue Management · Revenue Management FundamentalsWhat Is Yield Management?
Hotel yield management is the use of price and inventory controls to decide which demand to accept for limited, perishable room capacity, with the aim of improving the revenue produced by that capacity.
Revenue Management · ForecastingWhat Is a Hotel Forecast?
A hotel forecast is a forward-looking estimate of future business—commonly rooms sold, occupancy, rate, revenue, arrivals, departures, or demand—prepared for specific dates and segments using current bookings, historical patterns, known events, and professional judgment.
Revenue Management · Demand AnalysisWhat Is Hotel Pickup?
Hotel pickup is the net change in rooms, revenue, or another booking measure for a future stay date between two observation points.
Revenue Management · Demand AnalysisWhat Is Hotel Pace?
Hotel pace describes how current booking activity or on-the-books position compares with an earlier period, a historical pattern, a forecast, or another defined reference at the same point before arrival.
Revenue Management · Demand AnalysisWhat Is a Booking Curve?
A booking curve shows how reservations, rooms, or revenue accumulate for a stay date as the arrival date approaches.
Revenue Management · Demand AnalysisWhat Is Hotel Lead Time?
Hotel lead time is the interval between the date a reservation is made and the guest’s arrival date.
Revenue Management · Group EvaluationWhat Is Displacement Analysis?
Displacement analysis compares the expected value of a proposed piece of business with the value of other demand the hotel may have to reject if it accepts that business. It is commonly used to evaluate groups, negotiated accounts, or other room blocks during constrained dates.