Revenue Management
The discipline of adjusting pricing to demand and supply conditions.
Definition
Revenue Management is The discipline of adjusting pricing to demand and supply conditions. It comes up most often when rates are being adjusted across dates, channels, or unit types to protect revenue from demand swings.
The term keeps showing up because good strategy prevents unnecessary discounting while still keeping occupancy and booking pace on target. The work only makes sense when pricing discipline and channel consistency move together.
Use cases
Use Revenue Management to change rates with a clear view of demand instead of reacting late.
Review Revenue Management when the team needs to compare channel and pricing decisions against total revenue outcome.
Track Revenue Management so operations can keep discounting under control while still protecting booking pace.