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What is “Intelligent Demand Management” in Revenue Management?

Posted on 28th Jan, 2019 by Geetika Bahri Jain
What is “Intelligent Demand Management” in Revenue Management?

When Marketing Management and Revenue Management come together to a point where demand is generated or controlled, is synchronised to what is most profitable for the hotel as a whole.

Revenue Management forecasts automatically take into consideration the demand from offers and promotions, and the marketing management decides what marketing activity should be adopted for which market segment to encourage the "right" demand to fill the gap in business. This vision of synchronised decision making across pricing, revenue management, campaign optimisation and customer relationship management can be called Intelligent Demand Management.

For example, revenue management should communicate demand patterns and prevailing rates to marketing management so that campaigns can be placed in need periods, and pricing does not dilute revenue. Marketing management needs to let revenue management know when campaigns are running and what the expected boost will be so that revenue management can adjust forecasts accordingly.

This synergy ensures that promotional rates stay available, and pricing reflects where the demand is really coming from. Both groups need access to this information real time.