Personal Blog on RM

Revenue Management: Value, Service and Strategic Pricing Revenue management is not simply about charging the highest price or offering the cheapest room. It is about understanding what customers are willing to pay based on the value they receive. Customer Value = Benefits Received Compared with Price Paid.The Cheapest Option Is Not Always the Best Value For example: Hotel A – $170 Basic room No breakfast Parking costs extra Hotel B – $195 Breakfast included Free parking Better Wi-Fi Late checkout Although Hotel B costs $25 more, the additional benefits may make it better value. It is similar to buying a cheap burger and then paying extra for fries and a drink—the final cost may not be so cheap after all! Value Depends on the Customer Different customers value different things: Business travellers: location, Wi-Fi and convenience Families: breakfast, parking, space and a pool Luxury travellers: service, comfort and exclusivity For example, a business traveller may pay $240 for an airpor...

  If you run a hotel, pricing a room isn't like pricing a cereal box on a supermarket shelf. If a cereal box doesn't sell today, it sits on the shelf for tomorrow. But a hotel room is a perishable product . The moment midnight passes, an unsold room represents revenue lost forever. Hotels operate under high fixed costs (property, mortgage, insurance) and relatively low variable costs (cleaning, laundry, amenities). To maximize profit in this environment, hospitality businesses rely on dynamic pricing —adjusting room rates in real time based on demand fluctuations, seasonality, and local events. 1. Ditch Cost-Plus Thinking (And Forget 100% Occupancy) A common mistake in hospitality is relying solely on cost-plus pricing —taking the operational cost of servicing a room (e.g., $80–$100) and adding a fixed markup. If a citywide convention drives demand through the roof, setting a $125 rate based on cost leaves massive revenue on the table when guests are willing to pay $280...

15th Sept 2026 HOSP 424 Hospitality Revenue Management Revenue Management: This is a step-by-step process for selling the right product/service to the Right Person (customer) at the right price at the right time, through the right channel, and this is to maximize profit Revenue Management is the process of Selling the: Right Product & Service Right Person / Customer Right Price Right Time Right Channel In hospitality, RM (Revenue Management) is commonly used for Hotel Rooms, Restaurants / Cruises, Car rentals, spaces, etc. Example 1: 180 Total Rooms $150 Room Rate 70 Rooms Sold $10,500 Revenue  1. Occupancy Rate Formula:Occupancy % = Rooms Sold ÷ Total Rooms × 100 = 70 ÷ 180 × 100 = 38.89% 2. ADR (Average Daily Rate) Formula:ADR = Room Revenue ÷ Rooms Sold = $10,500 ÷ 70 = $150 3. RevPAR Formula:RevPAR = Room Revenue ÷ Total Available Rooms = $10,500 ÷ 180 = $58.33 If there is a major event in town and the revenue manager increases the room rate: 90 Rooms Sold $220 Room Rate $1...

  My Autobiography Hospitality Revenue Management My name is Efe Ohiosimuan, and I am a hospitality management student at Western Community College (WCC) in Surrey, British Columbia, Canada. I was born and raised in Edo State, Nigeria. My educational background, professional experience, and passion for customer service have shaped my interest in the hospitality industry. Educational Background I have a Master’s degree in Human Resource Management, which I obtained from Rivers State University of Science and Technology, Nigeria, in 2020. My education provided me with knowledge of employee management, organizational behaviour, communication, and leadership. I also hold a Scrum Fundamentals Certified credential, which introduced me to the principles of teamwork, organization, and effective project management. After moving to Canada, I continued my education at Western Community College. I initially enrolled in Academic Preparation before progressing to the Hospitality Management diplo...