Revenue management is highly important as it is a strategy which revolves around pricing and only based on this the hotel makes a profit. With the help of revenue management hotel rooms are priced and discounts and seasonal offers are given. (Christie, 2007) Revenue management basically is about selling the …show more content…
There has always been a misconception that if the occupancy rate is high then the hotel is having good business but the reality is that the only way the occupancy is high is if various discounts are given. Revenue management allows the employees to look at everything in a analytical way.Since revenue management helps increase an organisation’s revenue it will later on lead to employees getting better benefits through bonus and incentives. But on the negative hand, if revenue management is not done properly then revenue is lost and the hotel would loose out on a lot of business. A slight glitch in the revenue management would have a major impact on the company