What is Hurdle Revenue?

Hurdle Revenue refers to the minimum revenue that must be achieved for a specific purpose, such as for a reservation or a booking to be considered viable. In the context of hospitality and reservations, it is the threshold that a business sets, determining the lowest amount of revenue that would justify accepting a booking. This concept helps organizations to ensure that every reservation contributes adequately to their overall profitability.

The other options do not capture this essence. The maximum revenue expected pertains to an upper limit that is not the focus of Hurdle Revenue. Average revenue per booking averages out various transactions, which does not represent a minimum requirement. Total revenue generated in a day encompasses all income without specific criteria related to reservations, thus deviating from the distinct definition of Hurdle Revenue. Understanding this concept is crucial for effective revenue management strategies, especially in industries where booking viability is essential for operational success.