Major Pillars

Hotel Revenue Management – 5 Major Pillars

Hotel Revenue Management is structured in 5 Major Pillars:

1. Strategy & Pricing Philosophy
2. Inventory & Optimization (One Yield / ERS)
3. Distribution & Channel Management
4. Analytics & Reporting (MRDW, STR, Tools)
5. Leadership & Above Property Governance

Now let’s break it exactly in Hotel language.

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1️⃣ STRATEGY & PRICING PHILOSOPHY

This includes:

• High Performance Pricing (HPP)
• Extended Stay Strategy
• Corporate Pricing (MarRFP, SCPT)
• Business Transient Pricing
• Loyalty Reimbursement Strategy

Subsections:

• Pricing ladder logic
• Segment prioritization
• Displacement analysis
• Fair Market Value evaluation
• Corporate RFP strategy
• Budget & Revenue Planning

Tools Used:

• HPP guidelines
• MarRFP
• SCPT (Special Corporate Pricing Tool)
• Fair Market Value Tool
• Revenue Planning Template
• One Yield Strategy Outlook Template

Reports:

• ADR by segment
• Rate program audit
• Corporate production report
• Budget vs Forecast
• LPA goal tracking

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Hotel Revenue Management is structured in 5 Major Pillars

Hotel Revenue Management – 5 Major Pillars

Hotel Revenue Management is structured in 5 Major Pillars:

Watch the video above to understand visually how these 5 pillars are implemented in a modern corporate hotel revenue management system.

1. Strategy & Pricing Philosophy
2. Inventory & Optimization (One Yield / ERS)
3. Distribution & Channel Management
4. Analytics & Reporting (MRDW, STR, Tools)
5. Leadership & Above Property Governance

Now let’s break it exactly in Hotel language.

---

1️⃣ STRATEGY & PRICING PHILOSOPHY

This includes:

• High Performance Pricing (HPP)
• Extended Stay Strategy
• Corporate Pricing (MarRFP, SCPT)
• Business Transient Pricing
• Loyalty Reimbursement Strategy

Subsections:

• Pricing ladder logic
• Segment prioritization
• Displacement analysis
• Fair Market Value evaluation
• Corporate RFP strategy
• Budget & Revenue Planning

Tools Used:

• HPP guidelines
• MarRFP
• SCPT (Special Corporate Pricing Tool)
• Fair Market Value Tool
• Revenue Planning Template
• One Yield Strategy Outlook Template

Reports:

• ADR by segment
• Rate program audit
• Corporate production report
• Budget vs Forecast
• LPA goal tracking

Read More

Complete Revenue Management Framework in Hotel: The 5 Core Pillars

📚 Table of Contents

• 1. The 5 Pillars Framework
• 2. Pricing Philosophy
• 3. Inventory Control
• 4. Demand Forecasting
• 5. Channel Management
• 6. Market Segmentation
• 7. Data-Driven Decisions
• 8. Technology Integration
• 9. The Future of RM

FOUNDATION

1. The 5 Core Pillars Framework

The foundation rests on five specific pillars: Supply, Demand, Price, Time, and Product. Understanding their interaction is the difference between surviving and thriving.

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OPERATIONS

2. Pricing Philosophy & Psychology

Pricing is a message. We explore dynamic models and "anchor pricing" that influences booking behavior.

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OPERATIONS

3. Inventory Control & Overbooking

Mastering inventory protection and the mathematical approach to sustainable overbooking levels.

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STRATEGY

4. Advanced Demand Forecasting

Utilizing pickup patterns, pace reports, and market sentiment to accurately predict your next peak.

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STRATEGY

5. Channel Management & Distribution

Optimizing your channel mix to lower Cost of Acquisition (CAC) and improve bottom-line profitability.

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STRATEGY

6. Market Segmentation

Identifying your "Power Segments" and tailoring rates to specific price elasticity per market.

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LEADERSHIP

7. Making Data-Driven Decisions

Finding the "Story" behind the "Spreadsheet" to effectively influence hotel stakeholders.

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LEADERSHIP

8. Technology Integration (RMS & PMS)

Syncing your PMS with AI-driven Revenue Management Systems for real-time optimization.

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LEADERSHIP

9. The Future of Revenue Management

Exploring predictive AI and the critical shift from RevPAR to TRevPAR (Total Revenue).

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