Ten Years Of Hotel Revenue Management

　　Over the past 10 years, several factors have changed the models and approaches to Revenue Management (RM) and Pricing, particularly the Internet and the demise of traditional carriers and the subsequent rise of budget carriers.

　　The Internet has changed the distribution channel forever, putting the customer in control and pricing transparency is at the forefront. No longer do you visit a travel agent to book an airline ticket. The explosion of budget airlines across the world has meant more competition that has driven down prices of airline tickets across the world in real terms.

　　The past 10 years has transformed the customer"s experience of making airline reservations, consumers live in an instant society where access to the Internet is 24/7, a low-cost economy where consumers have traded down. To a certain extent, travel has become more of a commodity rather than an experience. The first airline passengers would probably have flown first class, experienced a hotel environment of butlers, caviar and fine wines and men would have worn a suit and a tie. How times have changed.

　　Business must know its customers, specifically you need to know how much your customers will pay for a product or service. This is not just about discounting but knowing your market segment, how much those customers will pay, when they will purchase and how they will purchase.