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Distressed Inventory Management

Distressed Inventory Management

Effective Distressed Inventory Management, a not well known concept among hotel revenue managers in India, is a key competency of Revenue FACTORY. Distressed inventory refers to hotel rooms that are unlikely to sell at full price, so have been reduced in cost. Hotels often significantly reduce prices to encourage consumers to book last-minute and to avoid their rooms going unoccupied. Inventory can become distressed for a number of reasons, but the most common is cancellations in close proximity to the booking date. The core competency of a Revenue Management companies lies in the way they handle the distressed inventories into revenue.


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Our Distressed Inventory Management Levers

Distressed inventory is used in hotels to refer to rooms that are not expected to be sold at full price, hotels often significantly reduce prices to encourage consumers to book last-minute and to avoid their rooms going unoccupied. Effective distressed inventory management is not so common among revenue managers, but we are specialized in that. Revenue FACTORY believes in a hotel that is full to capacity is good for business in other ways. It conveys the impression that there is always high demand for rooms there.

Pooled Inventory:

Our pooled inventory management system via a channel manager is a seamless two-way connection to your hotel’s various booking sites is key to ensuring the constant flow of information is reliable. This allows our partner hotels and resorts to increase your revenue and reduce waste, by ensuring all your inventory is available across all channels and you can keep all available rooms listed right up to the last minute.

Last minute Discounts:

Generally, online customers are forced to shell out over 40 percent or more for the last-minute bookings over the average fares. The most effective way to sell distressed inventory is the right implementation of offers and bookings for last minute bookings. Revenue FACTORY’s well trained team members is capable enough to find and apply the best last minute discounts for our partner hotels and resorts.

Vibrant Pricing:

As distressed inventory management becomes more and more relevant in the Travel industry, Revenue FACTORY gives importance of dynamic pricing fluctuations to manage our distressed inventories effectively. We have implemented a very effective dynamic pricing approach to sell distressed inventories effectually.

Using technology:

Just as technology empowers travellers and guests to explore their online options and conveniently book their chosen accommodation, intuitive technology can help hotels and resorts to manage their distressed inventories effectively. Revenue FACTORY, with the supports of technology manages our distressed inventories effectively.