Revenue Management vs. CRM: Where Hotel Strategies Conflict

Revenue Management aims to maximise hotel revenue and profitability through pricing, inventory control and customer mix optimisation. CRM, meanwhile, is a customer-centric strategy for identifying, attracting, retaining and developing valuable guest relationships. While CRM adoption in hospitality has been slowed by fragmented systems, distribution complexity and organisational barriers, consolidation and technology advances are driving progress. Successful CRM implementation depends on understanding and acting on customer value.

The purpose of the Revenue Manager is to maximise revenue and, ultimately, generate profit through improved sales. As such, they must set the right prices to sell the maximum number of rooms at the highest price the guest is willing to pay. This is achieved by increasing operational efficiency and effectively managing three main areas: pricing, inventory control, and customer or market-segment mix.
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