Most hotels are in it for money... 14:15 Jan 7, 2011
and want to try to make as much of it as possible, by employing a system of yield management. To give a general overview, this allows a hotel to control its hotel rooms and the revenue it gets from them by 'closing out' their standard rooms and/or rates when demand is high (for example, at Christmas, new year, trade fairs) to sell these at a premium - for example, on a "Christmas package" where guests are obliged to eat at the hotel, join in the festivities and pay over the odds for doing so. To use the Christmas example, the hotel will not actually be closed over the festive season, but rooms will not be on general sale (bookable over the net, by travel agents etc) because the hotel wants to maintain tight control of its rooms and ensure an increase in revenue. That makes a complicated system sound very simple - I hope the explanation helps. |