Accounting and Economics Basics for Hoteliers

Understanding the basics of economics and how they apply to revenue optimization in the hotel industry is a prerequisite to learning about the market and how it impacts a hotel’s revenue optimization strategy.  The economic environment has a direct relationship with, and impact on, hotel pricing and revenue optimization strategies. Therefore, understanding the fundamental components of economics, including supply and demand and price elasticity of demand, is essential for all involved in developing a hotel’s revenue optimization strategies.

Some foundational concepts will be integral for your broader understanding of revenue optimization. This lesson covers the basics of accounting (revenue and expenses) and microeconomics (supply and demand). You may already be familiar with these concepts, in which case this lesson will serve as a review. If you are new to the topics, this lesson will serve as an introduction.