Quote of the Week on Revenue Management

At the point of revenue maximization, it does not necessarily mean that the profit is maximized.  At the point of profit maximization, neither the room rate nor the demand is necessarily the highest.

Consider this:  Comparing selling 90 rooms without a discount as opposed to selling 90 rooms with 25% discount, in reality, you will have to sell 120 rooms to make up the revenue difference. 

Lily Lin