Cover -- Title page -- Copyright -- Dedication -- Foreword 1 -- Foreword 2: Boots on the Ground: The Best Vantage Point for Witnessing the Evolution of Revenue Management in the Lodging Industry -- Foreword 3: Hospitality Revenue Management and Pricing in the New Economic and Technological Environment -- Preface -- About this Book -- Contents -- About the Author -- 1: Introduction to Hotel Revenue Management -- 1.1 Origins of the Modern Hotel Era -- 1.2 Airline Deregulation and Birth of Revenue Management -- 1.2.1 Basics of Airline Revenue Management -- 1.3 Hotel Revenue Management -- 1.3.1 The Value Proposition in Lodging -- 1.4 Computerized Reservations Systems and the Airline Industry -- 1.4.1 Origins of the Hotel CRS -- 1.5 Hotel Transaction Processing -- 1.5.1 The Role of the UltraSwitch and the Internet -- 1.5.2 Hotel CRS and PMS -- 1.5.3 Global Distribution Systems -- 1.5.3.1 The Role of the Travel Management Company (TMC) -- 1.5.4 Wholesaler Travel Agency -- 1.5.5 The Internet and Online Channels -- 1.5.6 Online Travel Agencies -- 1.5.7 Hotel Booking Engine -- 1.5.8 Metasearch -- 1.6 Core Components of the Revenue Management Process -- 1.7 Hotel Rates -- 1.8 Customer Segmentation -- 1.9 Hotel Competitive Set -- 1.9.1 Monitoring Rates -- 1.10 Loyalty Programs -- 1.11 Performance Indicators -- 1.11.1 Monitoring Key Metrics Against the Competitive Set -- 1.12 Marketing Strategy to Enhance Bookings -- 1.12.1 Consumer Direct Bookings -- 1.12.2 Search Engine Optimization -- 1.12.3 Hotel Content -- 1.12.4 Guest Reviews and User Ratings -- 1.12.5 Customer Service -- 1.12.6 Allocating the Marketing Budget -- 1.12.7 Email Marketing -- 1.12.8 Managing Online Reviews -- 1.13 Levels of Sophistication for Traditional Revenue Management -- 1.14 Social Media Impact on Revenue Management -- 1.15 Key Organizations.

1.15.1 Hospitality Sales and Marketing Association International (HSMAI) -- 1.15.2 Hotel Electronic Distribution Network Association (HEDNA) -- 1.15.3 Hotel Technology Next Generation (HTNG) -- 1.15.4 American Hotel and Lodging Association (AHLA) -- 1.15.5 Professional Convention Management Association (PCMA) -- 1.15.6 International Hotel & -- Restaurant Association (IHRA) -- 1.15.7 OpenTravel Alliance (OTA) -- 1.16 Industry Datasets -- 1.16.1 Smith Travel Research (STR) -- 1.16.2 Marketing Information Data Tapes (MIDT) -- 1.16.3 IATA DDS -- 1.16.4 Forward-Looking Data for Hotels -- 1.16.5 Competitive Market Data from OTAs -- 1.16.6 User Rating and Sentiment Analysis -- 1.17 Pricing and Revenue Management for Competitive Advantage -- 1.18 Academic Focus -- 1.19 Revenue Management: The Onward Journey -- 1.19.1 Passenger Railroad -- 1.19.2 Rental Car -- 1.19.3 Cruise Lines -- 1.19.4 Ferry Lines -- References -- 2: Challenges with Harnessing the Revenue Opportunity -- 2.1 Unique Challenges -- 2.2 Types of Hotels -- 2.2.1 Airport Hotels -- 2.2.2 Budget Hotels -- 2.2.3 Mid-tier Hotels -- 2.2.4 City Center/Downtown Hotels -- 2.2.5 Boutique Hotels -- 2.2.6 Resort Hotels -- 2.2.7 Casino Hotels -- 2.2.8 Additional Classification of Hotel Types -- 2.3 Hotel Ownership Structures -- 2.3.1 Privately Owned and Operated Hotels -- 2.3.2 Leased Hotels -- 2.3.3 Managed Hotels -- 2.3.4 Franchise Hotels -- 2.3.5 Management Contracts for Franchise and Hotel Management -- 2.3.6 Soft Brands -- 2.4 Star Ratings -- 2.4.1 One-Star Hotel -- 2.4.2 Two-Star Hotel -- 2.4.3 Three-Star Hotel -- 2.4.4 Four-Star Hotel -- 2.4.5 Five-Star Hotel -- 2.4.6 Revenue Management and Star Ratings -- 2.5 User Ratings and Social Media Impact on Hotels -- 2.6 CRS, PMS, and Single Image of Room Inventory -- 2.7 Proliferation of PMS Vendors -- 2.8 Availability Rates and Inventory.

2.9 Rate Parity Violations -- 2.10 Product Distribution -- 2.10.1 Consumer Direct Bookings -- 2.10.2 The OTA Channel -- 2.10.3 The GDS Channel -- 2.10.4 Metasearch Sites -- 2.10.5 Wholesalers -- 2.10.6 Can GDSs and OTAs Help Hotels? -- 2.10.6.1 The Billboard Effect -- 2.10.6.2 Destination Forecasts from GDS Booking Data as a Leading Indicator of Hotel Demand -- 2.10.6.3 Tailoring the Hotel Shopping Display to Maximize Property Conversion Rates -- 2.10.6.4 Insight into the Hotel Competitor Set -- 2.10.7 Impact of Online Travel Agencies and Revenue Dilution -- 2.10.7.1 The Merchant Model -- 2.10.7.2 The Pay-at-Check-Out (PAC) Model -- 2.10.7.3 The Opaque Model -- 2.10.8 OTA Shopping Display -- 2.10.9 Home-Sharing Websites -- 2.10.10 Distribution Channel Effectiveness -- 2.11 Regaining Control -- 2.11.1 Deep Knowledge of the Customer Base -- 2.11.2 Social Media Presence -- 2.11.3 Search Engine Results Pages -- 2.11.3.1 Search Engine Optimization (SEO) -- 2.11.3.2 Search Engine Marketing (SEM) -- 2.11.3.3 SERP Challenges -- 2.11.4 Maximize Direct Bookings -- 2.12 The Hotel Tech Stack -- 2.12.1 Accounting -- 2.12.2 Hotel Website -- 2.12.3 Hotel Booking Engine -- 2.12.4 Concierge Services -- 2.12.5 Human Resource System -- 2.12.6 Central Reservations System (CRS) -- 2.12.7 Channel Manager -- 2.12.8 Customer Relationship Management -- 2.12.9 Global Distribution System (GDS) -- 2.12.10 Point of Sale (POS) Systems -- 2.12.11 Property Management System (PMS) -- 2.12.12 Reputation Management -- 2.12.13 Rate Integrity and Competitive Rate Shopping -- 2.12.14 Revenue Management -- 2.13 Sustainability in the Travel Ecosystem -- References -- 3: Hotel Pricing -- 3.1 Introduction -- 3.2 Price Planning Versus Price Execution -- 3.3 Origins of Hotel Pricing and Roy Hubbartś Formula -- 3.3.1 The Louis Toth Formula -- 3.4 Hotel Costs.

3.4.1 Fully Allocated Cost per Occupied Room -- 3.4.2 Direct Variable Cost per Occupied Room -- 3.5 Types of Hotel Pricing Models -- 3.5.1 Cost Plus Pricing -- 3.5.2 Market Pricing -- 3.5.3 Value Pricing -- 3.6 Hotel Rates and the Price-Demand Curve -- 3.7 Luxury Product Pricing -- 3.8 Types of Hotel Rates -- 3.8.1 Public Rates -- 3.8.2 Corporate Rates -- 3.8.3 Qualified Rates -- 3.8.4 Wholesaler Rates -- 3.8.5 Commercial Airline and Crew Rates -- 3.8.6 General Aviation Discounts -- 3.8.7 Government and Military Rates -- 3.8.8 Group Rates -- 3.9 Rational Pricing for Competitive Advantage -- 3.9.1 Current Customer Segments -- 3.9.2 Identify New Customer Segments -- 3.9.3 Time Series Analysis of Unconstrained Checkout Data -- 3.9.4 Objective Function -- 3.9.5 Price Link Constraints -- 3.9.6 Target Mix by Rate Type -- 3.9.7 Cost of an Occupied Room -- 3.9.8 Rate Optimization -- 3.9.9 Competitor Response Model -- 3.9.10 Role of Dynamic Pricing -- 3.10 Psychological Pricing -- References -- 4: Revenue Management of Room Rates -- 4.1 Introduction -- 4.2 Hotel Room Types -- 4.3 Inventory Preparation -- 4.3.1 Product Categories -- 4.3.1.1 Determining Number of Product Categories -- 4.3.2 Rate Categories -- 4.3.3 Duration Categories -- 4.3.4 Reading Days -- 4.4 Revenue Management Alternatives -- 4.4.1 Definition of Check-In Date and Control Date -- 4.4.1.1 Airline Revenue Management Equivalent -- 4.5 Rate Controls -- 4.5.1 Data Collection -- 4.5.2 Demand Forecasting -- 4.5.2.1 Destination Seasonality -- 4.5.2.2 Key Differences from Traditional Forecasting -- 4.5.2.3 Estimating Unconstrained Demand -- 4.5.2.4 Forecasting Methods -- 4.5.2.4.1 Time Series Models -- 4.5.2.4.2 Regression Models -- 4.5.2.4.3 Combined Forecasts -- 4.5.2.4.4 Alternative Methods -- 4.5.2.5 Forecasting Demand for Hotel Products -- 4.5.3 Supply Forecasting -- 4.5.4 Overbooking.

4.5.4.1 Overbooking Models -- 4.5.4.2 Benefits of Overbooking -- 4.5.5 Discount Allocation Rate Controls -- 4.5.5.1 Modeling the Demand Distribution -- 4.5.6 Reservations Inventory Control with Nested Controls -- 4.5.6.1 Calculating Room Availability -- 4.5.7 Shared Product Inventory -- 4.5.8 Critical Alerts and Resolution -- 4.5.9 Performance Measurement and Monitoring -- 4.5.9.1 Occupancy Rate -- 4.5.9.2 Average Daily Rate -- 4.5.9.3 Revenue per Available Room -- 4.5.9.4 Average Length of Stay -- 4.5.9.5 Gross Operating Profit per Available Room -- 4.5.9.6 Cost per Occupied Room -- 4.5.9.7 Competitive Occupancy Index -- 4.5.9.8 Competitive Rate Index -- 4.5.9.9 Revenue Generating Index -- 4.5.9.10 Earnings Before Interest, Taxes, Depreciation, and Amortization -- 4.6 The Revenue Opportunity Model -- 4.7 Rate Controls with Competitive Revenue Management -- 4.7.1 Determining the Competitor Set -- 4.7.2 Keyword Matching -- 4.7.3 Competitive Selling Rate Overrides -- 4.8 Rate and Length of Stay Controls -- 4.8.1 Significance of Length of Stay Controls -- 4.8.1.1 Airport Property -- 4.8.1.2 Resort Properties -- 4.8.1.3 Downtown Properties -- 4.8.2 Restrictions -- 4.8.3 Hurdle Rate Controls -- 4.8.3.1 Hurdle Rates in Finance -- 4.8.4 Optimization Model for Hurdle Rates -- 4.8.4.1 Alternatives Evaluated in the Airline Industry -- 4.8.5 Calculation of Room Availability -- 4.8.6 Best Available Rate (BAR) -- 4.8.6.1 Issues with the BAR -- 4.9 Dynamic Pricing -- 4.9.1 Traditional Approach -- 4.9.2 Competitive Marketplace Factors -- 4.9.2.1 Fully Allocated Total Cost of an Occupied Room -- 4.9.2.2 Markup Model for the Reference Rate -- 4.9.2.3 Forecast Occupancy Versus Planned Occupancy -- 4.9.2.4 Further Refinements to the Reference Rate -- 4.10 Group Control -- 4.10.1 Group Evaluation -- 4.10.2 The Group Forecast -- 4.10.3 Multiple Group Request Trade-Offs.

4.11 Conference and Function Space Revenue Management.