At what level is Hurdle Revenue calculated?

Hurdle Revenue is an important metric in revenue management, particularly in the hospitality industry. It is calculated at the room collection level. This level focuses on the actual revenue that is generated from the booking of rooms, taking into account the various factors that influence room sales, such as costs and potential discounts. By calculating Hurdle Revenue at this level, managers can assess the threshold that needs to be met in order for revenue-generating activities to be considered successful, ultimately guiding pricing strategies and promotional activities.

Calculating Hurdle Revenue at the room collection level ensures that it reflects the most direct financial performance linked to room sales. This is crucial for making informed decisions on how to optimize pricing, control costs, and maximize profitability in the competitive hospitality landscape.