Revenue Management

A bear enters the tent of two campers, Jo and Jim. Jo immediately whips out her running shoes and has them on in a flash. Jim, looking both terrified and perplexed, asks why she would be racing to get on her shoes, after all, she can’t outrun the bear. To which Jo replies, “I don’t need to outrun the bear; I only need to outrun you.”


The dynamics in the online marketplace have triggered a cascade of issues within the hospitality industry that affect many areas including organizational structure, the business acquisition disciplines, performance evaluation with a focus on profit contribution and costs, deployment of sales, the approach to price optimization, the nature of technology in use and the overall role of data. These issues are elements of the emerging discipline of revenue strategy that will be explored in this article.