Revenue Glossary​

Restrictions

👉 The rules of the game for booking rooms.

📘 What are Restrictions?

Restrictions in hospitality are conditions that limit or control room bookings, aiming to optimise revenue and manage occupancy.

  • They can be minimum/maximum nights, specific arrival days, closed-out dates, etc.
  • Applied to rates, packages or distribution channels.

✅ Why are Restrictions important?

Because they allow the hotel to control occupancy and maximise profitability:

  • Prevent unprofitable bookings on high-demand dates.
  • Optimise stays and minimise gaps in the calendar.
  • Help coordinate sales across channels and segments.

💡 Practical example of Restrictions

A hotel sets a minimum 3-night stay for bookings during a long weekend. This ensures rooms are not blocked for short stays, increasing occupancy and revenue.

🔄 Disambiguation of Restrictions

  • Restrictions vs Cancellation Policies: Cancellation policies affect what happens if the guest cancels, while restrictions affect how and when a room can be booked.
  • Restrictions vs Availability: Availability shows if rooms are free; restrictions limit who can book and under what conditions.

In summary:
Restrictions = rules applied to bookings to control occupancy, maximise revenue, and organise the room calendar.

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