What is the definition of Last Room Value in the hotel industry?
The word Last Room Value (LRV), refers to the highest revenue a hotel can anticipate to make from the last room it has existing for sale. It is used to keep away from selling the last room underneath a definite price – as when market demand is elevated the last room may be sold at a high rate than usual.
The computation is piece of active pricing practices and is done by revenue management departments of a hotel. Last room value is significant in order for hotels to manage their prices and inventory professionally while making a profit. LRV calculations are a standard practice within most Revenue Management plans.
The scheme uses the Last Room Value as a limit power for low value rates, during busy periods. While it opens all rates through slow times.