Revenue management (historically yield management) is the discipline of adjusting price, availability and restrictions according to forecast demand in order to maximise total revenue, usually measured as RevPAR or, more and more, as net or total revenue per available room.
It combines forecasting (how many rooms will sell for each date and segment), pricing (BAR levels, promotions, group quotes), inventory controls (MLOS, closed to arrival, stop sell) and channel decisions.
In practice: a small hotel does not need a complex system to start. A weekly pickup review, clear occupancy thresholds that trigger rate changes, and a look at local events and your comp set already cover most of the value. Always read several signals together before moving a rate, never just one.
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