[Real Time] Behind the Mystery of Rates - Revenue Management

In this episode of the Real Time chapter, Professor Jones demystifies hotel pricing and explains the logic behind what guests often see as confusing rate differences. Drawing from a career in hotel sales and real-time front desk work, he covers key revenue management concepts—from distribution channels to dynamic pricing—and how interns can engage with them. Whether you're interning in hotels or event planning, understanding revenue strategy will shape your effectiveness as a future manager.

Key Takeaways:

• Understand the "why" behind pricing – Rates vary daily due to occupancy forecasts, booking pace, and market conditions. Revenue management is data-driven—not random.
• Know your channels – Learn the differences between OTAs (e.g., Expedia), direct bookings, and corporate/travel agent systems like GDS. Each affects pricing and availability differently.
• Track dynamic pricing in real time – Rates shift with demand. One room might cost $246 on Tuesday and $664 on Thursday if it’s the last one available before a sold-out night.
• Master key metrics – Concepts like RevPAR, booking window, compression, rate parity, and pace are foundational. Get familiar with the terminology used in revenue meetings and reports (e.g., STR, Lighthouse).
• Ask insightful questions – Use your internship to understand strategy. Ask how pricing decisions are made, how competitor rates are tracked, how overbooking is handled, and how group/events affect rate strategy.