What is the meaning / definition of in the industry?

The term refers to demand being severely restricted in activity. It is used in the industry – in revenue management – when referring to demand forecasts.

To understand you must first understand unconstrained demand. is your total demand for a particular date irrespective of your capacity. Hotels should identify when is above the capacity of the hotel. This is an important part of your hotel reverevenue management strategy.

Constrained demand, is the demand you get when adapting factors such as price. By increases in price, you are changing the demand, in a way constraining it, thereby allowing less customers to book your hotel.

The concept of “Unconstrained Demand” is sometimes applied when a limit of a resource (hotel size) reduces the potential revenue from e.g. earning potential of the hotel restaurant.

See also:


  • Restricted Demand


Comments are closed