Sustainable Revenue Management
For the Long Run
Revenue Management should offer "the right product to the right customer at the right time for the right price" (Robert Cross, 1997). 
and
Sustainable Revenue Management should meet the ADR, Occupancy and RevPAR needs of current revenue managers without sacrificing the ROI goals of future owners and managers.

The Right Customers
If new customers are always available then long-term relationships may not be important to revenue managers.


On the other hand, if you believe Peter Drucker (1954) “There is only one valid definition of business purpose: to create a customer" then sales at "the right time" and " the right price" should not only generate current revenue but also enhance long-term relationships with individual customers . 

Huyton and Thomas (2000) claim that revenue management "places the needs of the customer secondary to those of the hotel." Advanced data collection systems, sophisticated revenue analytics, computerized management systems and investor demands have diverted a large share of management attention away from long-term goals toward short-term objectives. It is our belief that ultimate success in revenue management will require renewed attention to customer needs.

The Right Employee Incentives, Distribution Channels, Community Relations and etc.
The modern revenue manager is involved almost every aspect of hotel operations, daily trading-off  short term gains in ADR, Occupancy and RevPAR against
long-run financial performance. We believe it is possible to adjust the modern practice of revenue management to account for long-term goals by  innovating business policies, incentives and strategies. 

We use the word "Sustainable" to describe this aspect of revenue management because successful long-term business performance requires the stability associated with a reliable customer base, engaged staff, and a supportive community.


Please understand that we are not selling anything on this site.
We are seeking collaborators, anecdotes, data and scientific studies that support our thesis. 

Tim Tyrrell

Script embedded in HTML

Website Builder