In the current competitive hotel climate, revenue management’s ability to impact a hotel’s performance continues to increase in importance. Rapid technology advancements, improvements in the application of analytical concepts and increased dynamics of booking channels have seen revenue management evolve in leaps and bounds over the past two decades. Although these concepts have, until now, primarily been applied to guest rooms, in 2014, we will see revenue management move beyond the “rooms-only” approach and inch closer to total revenue performance. Since meeting and events business contributes a large percentage of both revenue and profit potential for many hotels, the next logical step for revenue management is optimising function space revenue. For some time now, leading hoteliers and academics around the world have recognized the potential of function space revenue management. A 2011 survey by Sherri Kimes, Professor of Operations Management at Cornell University1 and a leading revenue management academic, recognised function space as the area with the highest likelihood of success outside of traditional rooms revenue management. Despite these types of findings, it’s an area that has proved to be notoriously hard to measure and capitalise on. While the fundamentals of revenue management remain the same for any perishable products, including function space, a number of crucial differences bring additional challenges to the field. Get the full story at Ideas (PDF 967 KB)