What is the meaning of Room Inventory in the hotel industry?
There are perhaps two questions to think here: 1) What is room inventory? And 2) Why is room inventory so significant to hotels large and small across the world?
Well, in easy terms, room inventory is essentially a calculation:
The number of rooms a hotel has MINUS the quantity of rooms sold
= the number of rooms accessible for a particular day
With room inventory, hotels must only comprise in their computation the number of rooms accessible for booking. For example, a 100-room hotel in Charleroi (Belgium) may be redecorating 25 of its rooms on the third floor, meaning that only 75 per cent of the total rooms at the hotel must be incorporated in the room inventory figure.
The significance of room inventory cannot be harassed as much as necessary. After all, every hotel and motel in the world is in commerce to make money, and the majority of income comes from selling rooms. The occurrence of carrying out a room inventory process is, of course, completely up to each individual hotel or chain. But, it is worthwhile to do it at least once a week, and some hotels even transmit out a room inventory process on a daily basis, as this can help extremely when keeping trail of money (profit and loss) and setting prices for rooms and suites.