ABSTRACT
This chapter discusses the importance of revenue management in operating a hotel. The two primary ways of maximizing profits is first to maximize revenues and second to control and minimize expenses. Understanding the policies, procedures, and tools that are available to maximize revenues and being able to use them effectively are valuable skills for any hospitality manager, particularly in the rooms department. A hotel that is meeting or exceeding revenue budgets is a much more enjoyable place to work and provides managers a better opportunity to maximize profits because revenues are helping rather than hurting profitability. It is challenging for hospitality managers to maximize profits when a hotel is under-performing based on its revenue budgets and forecasts.
