Revenue management indicators and performance related measures in the hotel industry

MODICA, P.;FAZZINI, M.;SCANU, E.

2011-01-01

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Abstract

Revenue management indicators in the hotel industry, such as occupancy rate and revenue per available room, prove the effectiveness of this managerial method directly related to revenues and customers. The study also considers the hotel activity in terms of operating costs and correlates revenue management indicators to the operating efficiency ratio, evaluating the impact of revenue management on hotel profitability. For this purpose, a case study approach was used based on hotels located in North and Central Italy, and Sardinia. The research shows that there is a good correlation between the growth of operating efficiency ratio and revenue per available room during the period 2006-2009 and highlights that, on average, effective revenue management strategies on revenue per available room have a direct and positive influence on profitability.