Revenue Management


Matthias Matthias Managing Director

Outperform the competition through Revenue Management

How much a hotel room costs depends not on the season but on demand. Experts speak of Revenue Management: The right room, the right guest, at the right time and at the right price.

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Outperform the competition through Revenue Management

If ten years ago, especially in the leisure hotel industry, these tenets were still an absolute no go, companies which still rely on fixed prices and the duration of their stay are more and more in default. Hotels that have been operating Revenue Management for several years and use technologies to adjust prices, arrival and stay times are in the fast lane. They can use their extra profits to invest in quality and innovation.

This can be illustrated by a simple calculation, because Revenue Management increases sales on average by 10%, not by price dumping, but mainly by higher average prices in demand-intensive periods.

Such significant sales increases are hardly associated with additional costs and result in profit increases of 50% - 100%.

One example:

Hotel A has been relying on Revenue Management for two years. Previously, sales were around € 2 million. As a result of the switchover, sales in the last two years have increased to around € 2,2 million. And more importantly, the profit could be increased from € 400.000 to € 600.000. In just two years this is already € 400.000 more!

Hotel B still relies on gut feeling and can only dream of such profits. Without knowledge of their own figures, it will be difficult to remain competitive in a dynamic market environment. Although Hotel B would start immediately, it will not be easy to catch up again.

Quickly one realizes: Hotels are in the fast lane through professional revenue management and are able to surpass the competition.

RateBoard is distinguished by the mix of the most innovative revenue management software and the professional support of experienced revenue managers at a fair price.