Frequently Asked Questions

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Hotel revenue management is all about selling the right room at the right price to the right guest. There are many factors that make hotel revenue management different than other traditional industries such as perishable inventory, fixed capacity, ability to segment the market, and the possibility to forecast demand.

Perishable inventory is the concept that there is a limited window in which to sell a product or service, and once that window closes, the ability to sell that product or service is gone. If you miss the opportunity to sell a room on Wednesday, you have missed that opportunity forever.

Yes, while the concept of revenue management applies to many industries, it is essential for most hotels. Owner-operators often attempt to do it themselves, but as a hotel grows more dynamic, it becomes more important for one team to focus on deliving an exceptional guest service experience and another to handle the pricing and distribution of the hotel inventory (whether that be rooms, banquet space or restaurant seats). All teams must still work together to drive results.

A STR report is a compilation of data that helps to determine a property’s success relative to the properties in its competitive set from a previous week or month. It includes an occupancy index, an ADR index, and a RevPAR index. The name STR comes from Smith Travel Research, the company that compiles the data and produces the report, and is often pronounced “Star” report or simply “Star”.

A comp set or competitive set is the group of hotels with which a property measures its relative success and competes for demand. Typically it includes 4-6 properties that are in close proximity to the hotel in question that provide a similar offering to the subject property in terms of price, amenties, room count, room size, etc.

ADR is your average daily rate. This is the average of how much a room actually sells for on any given day, and includes any promotional discounts or commissions that were applied when the room was sold. ADR = Total Rooms Revenue/Total Rooms Occupied

BAR stands for Best Available Rate, and is the standard, visable nightly rate available to all travelers. BAR is sometimes referred to as rack or retail rate and is the master rate from which all other rate plans are derived, whether they are brand discounts, negotiated rates or package rates.

ADR breakage is the disparity between what the BAR is for any given day and the ADR that is coming in for that day. This is often expressed in a percentage as ADR/BAR. A breakage % nearing 1 is desirable because this means you are capturing an ADR close to what you are selling (i.e. less discounting), however, when someone refers to a “high breakage” that generally mean that your hotel has a large dispartiy between ADR and BAR.

LNR stands for local negotiated rate. These are contractracting rates either fixed or at a % off that are established with local businesses to ensure repeat business for the hotel.

OTA stands for online travel agent, i.e.,, etc. This is an additional platform from which to sell rooms, typically at a higher cost to the property than booking direct. While the property must pay a commission to sell through the OTAs, there is a cost to not being listed on an OTA through decreased exposure to potential guests.

When a hotel is in parity, it means that the hotel’s available rates across all channels (Expedia,, Hotwire, TripAdvisor,, etc.) are the same. When a hotel is out of parity, it means its rates are different across different channels. For example, if says the rate is at $89 while Expedia says $79, the property is out of parity. To maintain rate parity is to offer the same rates and inventory across all platforms – if you offer a discount on one channel, you must mirror it on all channels.

RevPAR is revenue per available room. This is found by dividing the total revenue by total number of rooms or multiplying ADR by OCC% for any given time period. For example, if your property has 87 rooms and sold 57 which resulted in total revenue of $5,984, while the ADR is about $105 the RevPAR is only about $69. For every empty room in the hotel, you still only generated $69. The greater your occupancy, the closer your RevPAR is to your ADR. The goal is for RevPAR to equal ADR, also known as the perfect sell. RevPAR = Total Rooms Revenue/Rooms Available for Sale

The GDS is the global distribution system, which serves as the connection between travel agencies and a property’s central reservation system. The majority of consortias and corporate negotiated rates come through this channel but individual leisure travel can also come through the GDS by way of a travel agency.

With Spider Analytics your data is finally at your fingertips. Gone are the days of guessing if a particular investment is actually delivering results. With Spider’s detailed modules you can make those decisions in a matter of minutes.

Our people and our software are brand-neutral. You won’t have a different revenue manager per brand, so you can keep one point of contact for all your hotels in the same market. Additionally, you can finally read all your hotels’ data in one universal platform. No more learning three different brand systems and pulling the reports for each one.

“**All our boutique revenue management service models receive access to our Spider Analytics platform and our proprietary daily Snapshot email 7 days a week.**

RM+ Elite – Our premier offering for high demand hotels in dynamic markets. Weekly revenue calls + calls by request, 4x snapshot response/week, ad hoc requests on demand
RM+ Weekly – Our most popular offering for dynamic hotels in primary and secondary markets. Weekly revenue calls, 3x snapshot response/week, moderate ad hoc requests
RM+ Bi-Weekly – For smaller hotels in less dynamic secondary and tertiary markets. Revenue calls every other week, 2x snapshot response/week, moderate ad hoc requests
RM+ Lite – For smaller, less dynamic hotels that still require RM support. Monthly revenue call, 1x snapshot response/week, minimal ad hoc requests
RM Taskforce – Temporary RM support to stand in while bringing RM in house or to cover turnover

Spider Analytics is the only fully automated, brand-neutral hotel software that puts the right information in front of the right people to enable your entire team to make educated decisions on the fly. Without having to pull or run any reports, your team can access your hotel’s historical and forward-looking data from the highest summary level information such as total revenue, OCC and ADR for any given time period across a portfolio of hotels, down to the most granular reservation data for an individual hotel. This level of detail gives you the power to make informed decisions related to forecasting, group pricing, determining VIP guests and companies, RFP account repricing and so much more.

Digital strategy is essential because 90% of hotel rooms are booked online. It is extremely complementary to your revenue management services as it makes sure your online presence is top-notch and consistent across all OTAs. Many hotels are investing in digital marketing on top of any brand marketing spend – your hotel will be harder to find if you’re not competitive in marketing spend. Starting in 2021, all our revenue management services will be bundled with digital strategy services to make sure our team is doing everything we can to drive revenue.

Having a taskforce service manage your revenue gives you the peace of mind that your hotel will be taken care of while you focus on hiring your in-house revenue management team. We will also be able to train your team on Spider Analytics and catch them up on the hotel’s strategies so there will be no downtime. You don’t have to worry about missing an important event or implementing blanket strategies for the future.

Our revenue managers come from varying backgrounds across the hospitality industry. Before our revenue managers and analysts are qualified to manage their own portfolio, they must go through our Kriya U training program and pass both brand required and RevGEN specific exams. We make sure our team is made up of experts in both our software and any of your brand systems.

Our office hours range from 8AM-5:30 PM CST, Monday through Friday and our revenue management team is based in our office in Grapevine, Texas. Revenue managers are expected to respond to emails and calls during office hours. However, we understand hotels stay open 24/7. While communication is limited during out of office hours, our team is expected to be alert during high demand dates. If there is an emergency, our skilled team works together to get you the support you need.

For RevGEN to remain brand-neutral, we develop strong relations with the brand representatives to get the most up-to-date brand news. Our revenue managers become experts in each brand they work with and are continuously learning from our brand representatives. Once per month, for our Bi-Weekly clients and above, we deep dive into the brand systems with our monthly “Systems Spotlight” to make sure all brand systems are operatiing efficiently and with the correct parameters.

Our goal is to make our hotel client’s lives easier, smarter and better. Through our boutique revenue management service, RM+, we offer flexible terms and a highly personal touch to our service unlike larger RM service providers. Most importantly, we deliver results. For more information on how we make our hotel’s money, please check out our case studies here.

The number of hotel’s in a revenue manager or analyst’s portfolio varies by service level. Generally, our boutique service means our team members revenue manage about 11-12 RM+ Weekly hotels max.

RevGEN operates like a lean, fast-paced start-up. As a revenue manager or analyst you will advance by tackling more dynamic properties, helping lead a team of other analysts or managers and branching out of revenue management into supporting departments (Digital Strategy, Training, Recruiting). We have an all hands on deck mentality when it comes to getting things done. Our revenue management team advances via the following path Revenue Analyst > Revenue Manager > Director.

There are pros and cons when it comes to managing a branded hotel vs an independent hotel. Independent properties often have more freedom to get creative with promotions, marketing initiatives, and pricing strategy in general. Branded hotels, while more strict and structured in available levers, offer more safety nets, for example, global sales programs, marketing programs, and digital marketing that is often taken care of at the brand level.

Day to Day: Respond to any overnight emails, draft and send daily Snapshot responses and prepare and run any revenue calls in the day.
Weekly: Prepare and run revenue calls, attend brand training/workshops with the RevGEN team, adjust rates/strategies as needed for your portfolio, and work on ad hoc projects.
Monthly: Recap the previous month and review monthly STR reports, complete monthly Spotlight items in System, Sales, Planning and Digital categories, and review monthly forecast adjustments with the hotel teams.

Analytical Problem Solving
Quantitative + Qualitative Decision Making
Proficiency in Excel, PowerPoint, and Word
Persuasive Communication

Social intelligence
High EQ
Strong Follow-Through
Relationship Building
Interpersonal Communication
Organizational Skills

Management Group RM Lead
General Manager
Director of Sales

Since the RevGEN team works remotely out of our Grapevine, TX office (sometimes thousands of miles) away from our clients’ hotels, you won’t be aware of sudden changes happening on-site. Regular communication, initiated by the RM team, is crucial to ensuring revenue management success. Your clients will look to you for answers, particularly during a crisis or big events. You will have to work that much harder to understand your hotel if you’re unfamiliar with the area/events. Every department in a hotel must work together to make sure the hotel is running optimally. For example: during the Super Bowl, revenue managers will make sure rates are high and discounts are yielded out. The sales team will make sure the group rates are optimal and work with the revenue manager to avoid any displacement. All of this is communicated to the general manager and their front desk team to ensure that no lower-rated business slips in. The housekeeping forecast will also depend on the revenue manager’s forecast. When all parts work and communicate in tandem, that’s when we see the best results.

While a degree may help you learn the theoretical and conceptual fundamentals of the revenue management practice, a 4-year undergraduate degree is not necessary to work in the field of revenue management or at Kriya RevGEN. Almost all of our team has some form of hospitality experience (front office, sales, F&B, etc.), which proves to be very valuable when working with the on-property teams, and we also hire directly from top tier hotel programs across the country, but the thing we value most at Kriya RevGEN is a self-starting, positive, and teachable approach to the position.

While RM-specific courses are a newer addition to most top tier hospitality programs, they are quickly becoming highly sought after for most undergraduate students because of the opportunity that revenue management experience provides. Several associations provide certifications within the field, but we feel the best way to learn about RM is by doing! Come join our team by applying today!

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