In the context of hotel revenue management, Last Room Value (LRV) refers to the highest available rate for the last remaining room in a hotel's inventory. It ensures that hotels can optimize revenue by selling their last available room at the highest possible rate, particularly during periods of high demand. LRV helps hotels maximize their revenue potential and effectively manage their room inventory by capitalizing on the scarcity of available rooms.
What is Last Room Value (LRV) in hotel revenue management?
Last Room Value (LRV) refers to the highest available rate for the last remaining room in a hotel's inventory. It allows hotels to maximize revenue by selling the last available room at the highest possible rate, especially during peak demand periods.
How does Last Room Value (LRV) benefit hotels?
LRV helps hotels optimize revenue by ensuring that they can capitalize on the scarcity of available rooms during high-demand periods. By pricing the last room at the highest rate, hotels can effectively manage their inventory and maximize revenue potential.