How does Hurdle Revenue help in managing bookings?

Hurdle Revenue plays a crucial role in managing bookings by filtering out excess demand. This concept allows revenue managers to assess and control the level of bookings they accept based on predetermined revenue thresholds.

When demand is high, rather than simply accepting all reservations, Hurdle Revenue encourages managers to focus on bookings that meet or exceed a certain revenue criterion. This means that only the most profitable bookings are accepted, which helps in maximizing overall revenue while preventing oversaturation in inventory. This approach is especially useful in balancing occupancy rates and ensuring a healthy profit margin, as it allows for the management of supply and demand effectively without compromising quality or pricing strategies.

By having this structured approach to understanding bookings, hotels can prioritize their inventory and optimize their revenue potential, ensuring that they don’t overcommit to reservations that would ultimately not contribute positively to their bottom line.