Revenue management is the established practice of manipulating pricing and other controls in order to maximize revenue that can be achieved from fixed, highly perishable inventory.
An example of a fixed, perishable unit of inventory could be one night in a hotel room, or one month in an apartment.
- The number of apartment units in a complex is “fixed”, i.e. this cannot dynamically change based on higher or lower customer demand.
- Once a night has passed, the opportunity to sell a hotel room for that night has passed; this is what is meant by “perishable.”
At a high level…
- The Rainmaker Group’s revenue management solutions leverage predictive analytics to forecast future customer demand.
- Once the potential demand has been determined, optimization algorithms are run to ensure that for each fixed, perishable unit of inventory the maximum amount of potential profit or revenue is achieved.
- Recommendations of pricing or other controls are provided by the system and implemented by clients.
Advanced revenue management and profit optimization are essential business practices for both the hospitality and multifamily housing industries. The ROI from Rainmaker products is real, rapid, and proven across over a million units of inventory worldwide.
To learn more, select the appropriate industry link below to explore information on Rainmaker products, or contact us directly.