Revenue management has come under scrutiny during the past several weeks. Dom Beveridge, Principal with multifamily technology consultancy firm 20 for 20, reviewed the misunderstandings surrounding revenue management software in a recent article.
Beveridge defends the use of the software: “Sophisticated algorithms predict future supply and demand and avoid problems that would otherwise result in underperformance. When operators make fewer bad decisions, revenue performance improves—none of this entails price-gouging.”
The underlying theme Beveridge circles back to is the lack of housing and lack of affordable housing on the market. His solution to the housing crisis: Build more housing. "You cannot solve a supply and demand problem like housing affordability by trying to make providers less profitable.… To put it another way, we cannot solve a housing crisis by making profitability and performance dirty words in our industry.”
Learn more about all this talk about revenue management and antitrust violations.