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According to Neil Salerno, profit management focuses more on “profit” rather than “revenue.” Its goal is to “maximizes gross revenue while optimizing potential room profit.” Under profit management, a hotel may prefer 78% occupancy with an ADR of $94 to 84% occupancy with an ADR of $87. Here, “profit” is the key.
No matter a hotel wants to apply yield management, revenue management, or profit management in operations, managers’ decisions count on a good rate structure, reliable forecasting, and good understanding of the market segments. Do you agree with Neil Salerno that profit management is the future?
References:
Hotel-Online.com: http://tinyurl.com/linchikwok05202010
Picture was downloaded from: http://tinyurl.com/linchikwok05202010P
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