Type of Submission

Invited Article


The purpose of this paper is to introduce hotel managers and hospitality educators to room revenue analysis method that is based on statistical indices. A paper presents a theoretical example of a room pricing and shows how changes in a total room contribution margin can be attributed to one of three changes: (a) changes in contribution margins for a hotel room with a specific rate, (b) changes in proportion (composition) of different rooms sold, and (c) changes in quantity of rooms sold. Hotel managers may use this approach as a supplementary tool for already existing yield management techniques.