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Revenue management helps control days of high demand in such a way that they help contribute to the shoulder days – before and after high demand days - as well.
The starting point of any optimization is a solid forecast. Based on the forecast one can decide which length of stays to accept and which to reject. Depending on the property size, complexity, general demand levels and the available budget, companies can chose to use manual or fully automated revenue management systems and processes.
It is generally recognised within the industry that well implemented revenue management can increase revenues by up to 10%. The impact on profit is typically many times higher. |