Hospitality Revenue Analytics

The Core RM Concept Every Brand Revenue Manager Should Know, But Doesn’t

Would it make sense to only know how to do math using a calculator? Even in our hi-tech society, it is not OK to NOT understand the fundamental processes of adding, subtracting, and multiplying just because you have a machine than can figure it out for you. I think most of you would agree with that opinion. Yet, in the Hotel Revenue Management function, the most mathematical function of the hotel industry and one of the most mathematical functions of any industry, most RMs using Brand RMS systems to make rate decisions have no clue how the software calculates forecasts and suggested rates.  At best, that’s just odd, at worst, it is outright irresponsible to the hotel’s stakeholders.

It is no secret that the hotel industry is suffering a talent shortage across all functions, specially RM, and that is exactly the reason why hotel companies should do more to elevate the analytical sophistication of their RMs.  At a minimum, I would expect all large hotel companies to teach their RMs that there are two basic mathematical approaches to Revenue Management. These are the algorithms on which all RMS systems are based in airlines and hotels and retail, etc. Here’s a 5 minute introduction to the one fundamental RM concept that every Brand Hotel Revenue Manager should understand.


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Robert Hernandez, Statistical Analysis and Data Mining for Revenue Growth Robert is an expert in the field of mathematical Hotel Optimization and Analytics. He has spent the last 17 years building data-driven forecasting and optimization models for companies in over 20 different industries, from tech to tourism. Robert possesses a very unique skill set including cross-disciplinary experience, advanced mathematical and analytics skills, data transformation, industry-specific knowledge and business-process improvement expertise. Robert began his career at the Walt Disney Company in Revenue Planning. Read More+



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