What is the definition of Total Revenue Management in the hotel industry?
Total Revenue Management is a much-discussed idea in hospitality, but in realism it has produced a great deal of mystification. Put simply, it is the revenue management of all income sources in a hotel. From your RevPAR and GOPPAR to the hotel restaurant, and from the bar, spa and gym to activities and excursions, it includes every single hotel revenue stream.
This plan implies that revenue management is useful to every department of a hotel. It is the future of revenue management. Some changes have to be completed then, according to the submission of this approach. First, the revenue manager needs to have a middle position in the association. Then, all department managers need to be taught about income management.
New measurement gear should be used to calculate properly, like RevPASH (Revenue Per Available Seat Hour) for F&B, RevPATH (Revenue Per Available Treatment Hour) for the SPA, etc.