What is the correct order of the five-step transient revenue management process?

The five-step transient revenue management process is designed to systematically optimize revenue by effectively managing the components of demand, supply, rates, hurdle, and inventory. The correct order begins with demand because understanding the demand is crucial; it informs how many customers you can expect to serve and at what times.

Following demand, supply comes next, as it involves assessing the resources available to meet that demand. After evaluating both demand and supply, the next step is to determine rates, which involve setting the price points for the available inventory to maximize revenue based on the previously gathered information. The hurdle step then follows, which is critical for establishing the minimum acceptable rates that must be reached to ensure profitability. Finally, inventory management is addressed, where decisions are made on how to allocate the available resources efficiently to optimize overall revenue.

This systematic approach ensures that each stage builds upon the previous one, facilitating a cohesive strategy for transient revenue management.