Revenue Management

Revenue Management

Revenue Management is a strategy that uses pricing techniques, distribution channels, sales and promotional strategies determined on the basis of the historical data of a company and conducted by developing mathematical and statistical models.

Revenue Management dates back to the early 1980s, when airlines began applying "Yield Management", a series of forecasting techniques, optimisation models and a painstaking analysis of costs/revenue management aimed at maximising profits. Today Revenue Management is most commonly used in the hotel industry.

We firmly believe in the importance of this discipline, and this is why we are the first to have adapted Hotel Revenue Management to non-hotel accommodation.

This means that:
We use the company's historical data to analyse revenue, costs and efficiency indicators:Average Occupation Rate (AOR)

  • Average Revenue Rate per House (ARR)
  • Revenue Per Available Week Rate (REVPAW)
  • House Sale Efficiency Rate (HSE)
  • Cost Per Available Week (COSTPAW)
  • Date of Booking
  • Booking request refused because property already occupied

We use current data to analyse:

  • Location
  • Estimated Occupation
  • Competitors
  • Seasonality

We use the data thus collected to draw up a Revenue Oriented calendar, which divides the year up into different periods – low, medium and high season – for the purposes of establishing the price list.