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Revenue
Revenue management
Revenue management is the discipline of selling the right night, at the right price, through the right channel, to maximise total income over a period. It combines pricing, stay restrictions, channel strategy and forecasting rather than treating rate alone.
Why Revenue management matters for your revenue
Pricing changes made in isolation often cancel each other out — a rate cut with a long minimum stay still leaves the calendar empty. Revenue management coordinates the levers, which is where most of the compounding gain comes from.
Related terms
- Dynamic pricingDynamic pricing is the practice of changing nightly rates continuously in response to demand signals: local occupancy, competitor rates, events, day of week, seasonality and how far ahead the booking falls. Rates are recalculated regularly rather than fixed at the start of a season.
- RevPANRevenue Per Available Night is the short-term rental equivalent of RevPAR, applied to a whole property rather than a hotel room. It divides total booking revenue by every night the property was available in the period, including nights blocked for maintenance only if they were bookable.
- Channel mixChannel mix is the distribution of a property's bookings across the platforms that produced them, usually expressed as a percentage share of nights or revenue per channel, including direct bookings.
- Occupancy gapThe occupancy gap is the difference between a property's occupancy and the realistic benchmark for comparable properties in the same market and season, expressed in nights or as a percentage of available nights.
Revenue Management at Pinnacle Path
Revenue management sits inside our revenue management work. See how we apply it market by market.