Chasing occupancy by discounting is the most common and most expensive mistake.
The longest stage — it runs for years. All services →
A full hotel is not a profitable hotel. Occupancy rises easily when you cut the rate — but revenue per available room falls, and profit with it.
Revenue management balances three variables at once: rate, channel and the seasonality of demand.
Booking and Expedia bring the reservation and take 15–20 percent for it. That is not a bad deal while the alternative is an empty room.
It becomes bad when the share of direct bookings is small and the hotel depends entirely on the channel. Our job is to grow that share.
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