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Glossary overview

Revenue Management

Armin Gögele, last updated on August 29, 2023

What is Revenue Management?

The term revenue management is often used in connection with tourism and the hotel industry and describes an economic concept that helps maximize revenue growth. Information about a customer's willingness to pay is evaluated and used to sell the right product to the right customer at the right time.


Software that is connected to the database of a hotel, provides information about occupancy rates, capacity, demand, and prices to optimize product availability and price. Through automatic and smart pricing, demand and availability can be balanced in order to increase revenue.

Optimization of online hotel marketing through hotel revenue management

Data from revenue management offers optimization potential for online hotel marketing or digital hotel marketing. Revenue managers work with daily updated data sets in their daily work, the use of this data in the context of data-based marketing campaigns contributes to the fact that campaigns can be constantly optimized and thus made more efficient and profitable.


The following areas of revenue management are particularly relevant for digital hotel marketing:

  • detailed demand forecasts
  • dynamic pricing strategies
  • booking speed or pre-booking time of the target group
  • collected guest data

Frequently asked questions about Revenue Management

What are the benefits of revenue management for hotels?

 Revenue management offers important advantages, especially for the hotel and restaurant industry. Through revenue management, revenue potential can be optimally utilized and thus revenue growth in the hotel can be increased. The analysis of past, current and future demand data as a central approach in revenue management, offers optimal conditions for setting the right room rate at the right time and optimizing occupancy. A targeted and well-implemented revenue management strategy enables an enhanced understanding of the booking behavior of guests, and the insights gained from this can be used profitably in data-based online hotel marketing.

How are revenue management and Internet marketing for hotels related?

Data obtained from revenue management processes and measures can also be used profitably in online hotel marketing. In particular, demand analyses of the past, detailed demand forecasts for the future, insights into dynamic pricing and pricing strategies, the average pre-booking time or lead time for a booking, and the collected guest data at the time of booking completion offer great potential for optimizing online marketing along the customer journey. Data-driven marketing aims to target the right guest at the right time with the right message, while revenue management systems aim to find the optimal price to increase long-term revenue growth.