What is the meaning / definition of in the hospitality industry?

The term Last Room Value (), refers to the maximum revenue a hotel can expect to make from the last room it has available for sale. It is used to avoid selling the last room below a certain rate – as when market demand is high the last room may be sold at a higher rate then normal.

The calculation is part of dynamic pricing practices and is done by revenue management departments of a hotel. Last room value is important in order for hotels to control their prices and inventory efficiently while making a profit. LRV calculations are a standard practice within most Revenue Management strategies.

The system uses the Last Room Value as a restriction control for low value rates, during busy periods. While it opens all rates during slow times.

See also:

  • Revenue Management
  • Dynamic Pricing

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