Revenue driver is used to forecast/predict revenue or covers in a profit center. A revenue driver looks at what drives the revenue or level of activity in a department. Different departments can have different revenue drivers such as guests, rooms, and revenue.
When using a seasonal revenue driver, PMI uses an algorithm based historic patterns and seasonality to predict future revenue or activity.
When using a manual revenue driver, the property decides the factors that will affect what happens in a department and sets ratios to forecast. Some examples:
- The ratios can be based on covers in the restaurant as a ratio of guests in the house
- You can use last year’s revenue as the base for expected revenue during the same period this year
- Beverage revenue can be a ratio of food revenue
If you want to change whether you are working with a seasonal or manual revenue driver, please contact us in d2o and we will change the settings for you.
Click here to read more about Revenue drivers.