A brief review of revenue management software misconceptions from a multifamily leader.
December 6, 2022 |
Updated December 6, 2022
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.