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Revenue Management, Pricing & Capacity Strategy

RM Stories

A continuing story about revenue management, profit, and the questions behind the numbers.

Hotel managers have become very good at improving occupancy, ADR, RevPAR and market share.  But what happens when all of those measures improve and the economic outcome gets worse?

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RM Stories follows Carlos and his team as they try to understand what their commercial dashboard does not tell them.  Inspired by The Goal, the series explores revenue management as a system, one decision and one uncomfortable question at a time.

START HERE

CHAPTER 1

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An Exceptional Quarter

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Carlos and his commercial team have achieved every objective established for them.  Occupancy, ADR, RevPAR, market share and direct bookings are all improving.

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Then the ownership representative asks one question no one in the room can answer.

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CHAPTER 2

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A High-Value Group​
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Carlos goes looking for the people who serviced the business the commercial team sold. The group was unquestionably valuable, but not necessarily to the hotel.

COMING NEXT

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CHAPTER 3

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The Cost of Going Direct​

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Direct bookings increased and commissions fell. But once the hotel counts what it spent to make that happen, the apparent saving begins to disappear.

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