Revenue management
Read occupancy, ADR and RevPAR at a glance, spot soft and busy dates ahead, and turn pricing rules into rate recommendations you can accept in one click.
What is hotel revenue management?
Revenue management (also called yield management) is pricing the same rooms differently as demand changes: raising rates as dates fill up and filling soft dates before they pass, to earn the most from a fixed number of rooms. It is a loop: measure → decide → reprice.
Rooms & Rates → Revenue Management gives you the numbers and suggests rate changes from rules you set. Accepted changes are written into your normal rate calendar and pushed to your booking engine and OTAs, so nothing is hidden.
The numbers that matter
| Metric | Meaning |
|---|---|
| Occupancy | Rooms sold ÷ rooms available. |
| ADR (average daily rate) | Room revenue ÷ rooms sold. Rises when you sell at higher prices. |
| RevPAR (revenue per available room) | Occupancy × ADR. The single best measure of how well you are pricing. |
| Room Revenue | Total room revenue for the day. |
- Overview: today’s figures compared with the same period last year (vs SPLY), a 14-day occupancy trend, the next 14 days banded by occupancy (under 50%, 50–85%, over 85%), and pending actions.
- Demand Calendar: occupancy for every night ahead, so soft and tight dates stand out.
- Pace & Analytics: how this period is booking compared with last month and last year.
- Competitors: rates you track for nearby properties.
How to calculate occupancy, ADR and RevPAR
Take a 40-room property that sold 30 rooms last night for $4,500 of room revenue:
- Occupancy rate = rooms sold ÷ rooms available = 30 ÷ 40 = 75%
- ADR = room revenue ÷ rooms sold = $4,500 ÷ 30 = $150
- RevPAR = room revenue ÷ rooms available = $4,500 ÷ 40 = $112.50, the same as 75% × $150
Raising your rate lifts ADR, but RevPAR only rises if you don’t lose too many bookings. That is why RevPAR is the number to watch. Roomsy calculates all three for you on the overview and in the Summary report.
Set pricing rules
Open Pricing Rules. Start from a Quick Start Template (Conservative, Moderate or Aggressive) or click + Add Rule to build your own. Typical rules:
- Occupancy bands: raise the rate as a date fills, for example +10% above 70% occupancy and +25% above 90%.
- Day-of-week: a standing premium or discount per weekday.
- Lead time and events: adjust for last-minute dates or local events.
Recommendations
- Set your guardrails firstIn Settings → Rates → Yield Management, set the minimum and maximum rate for each rate plan, the look-ahead window (for example 90 days) and the minimum change threshold. No recommendation is ever outside your guardrails.
- Click Generate RecommendationsYour rates for the look-ahead window are compared with your rules. With no rules, there is nothing to recommend.
- Review each suggestion, then Accept or Dismiss itAccept All applies everything at once. Accepted rates are written to the rate calendar and synced to your channels.
Common questions
What is the difference between ADR and RevPAR?
ADR is the average price of the rooms you sold. RevPAR spreads room revenue over every room you have, sold or not, so it rewards price and occupancy together. Cutting your price can lower ADR yet still raise RevPAR if it fills enough extra rooms, and the opposite is also true.
What is a good occupancy rate or RevPAR?
It depends on your market, season and type of property, so compare like with like: the same period last year (shown as vs SPLY on the overview) and the rates of nearby properties you track under Competitors.
What is dynamic pricing?
Changing your rates as demand changes instead of keeping one price per season. In Roomsy, pricing rules such as occupancy bands and day-of-week premiums turn into rate recommendations you accept or dismiss.
Will Roomsy change my prices without asking?
No. Rate changes happen when you accept a recommendation, so nothing changes your prices behind your back. Recommendations always stay within the minimum and maximum rates you set for each rate plan.
Still stuck?
Our support team answers every message. Inside Roomsy, open Help → Support Request, or email us.