Revenue management in the leisure sector has matured rapidly. Holiday parks now work with advanced pricing models, data-driven forecasting, and well-defined seasonal strategies. Yet one aspect often remains overlooked: the way bookings are ultimately assigned to physical accommodations.
“Revenue management isn’t solely about setting the right price,” says Hidde Bieze, Business Consultant Manufacturing, Retail & Leisure at ORTEC Data Science & Consulting. “There is still significant value to be captured through asset utilization optimization: how capacity is actually used. That determines whether the inventory (the space) you already have can truly be sold.” According to Hidde, allocation management is an undervalued part of revenue management: the bridge between strategy and execution. “Many organizations fine-tune pricing with extreme precision, yet lose millions through inefficient allocation of bookings to assets. That’s the hidden value waiting to be unlocked.”
From Forecasting to Strategic Asset Utilization in Revenue Management
“The leisure market is in the midst of a transition,” Hidde explains. “With flexible arrival and departure dates on the rise at holiday parks, planning has become more complex. Where parks once had fixed arrival blocks (week, mid-week, weekend), guests now want to decide for themselves when they arrive and leave. That’s great for guest experience, but it introduces inefficiencies.”
The outcome is familiar to every operator: “Small, fragmented gaps start to appear in the schedule. You may still have nights available, but they’re not consecutive enough to create an attractive stay. As a result, even with strong demand, you can’t achieve full occupancy. That’s lost revenue on capacity that is, in theory, available.”
Many organizations perfect their pricing, yet lose millions through inefficient booking allocation.
Smart Booking Allocation: Closing Capacity Gaps for Higher ROI
To address this challenge, ORTEC developed the Allocation Engine, an optimization layer that strategically reorganizes bookings and assigns them to capacity with maximum efficiency. Hidde compares it to Tetris: “The principle is simple: you shift existing bookings to close the gaps between them. Not randomly, but by evaluating thousands of possible combinations within both commercial and operational constraints. This creates complete weeks or mid-weeks (consecutive days) that are attractive enough to resell.”
What seems technical in theory has significant commercial impact. “In practice, allocation reinforces pricing strategy,” says Hidde. “When remaining capacity consists of isolated single nights that are almost impossible to sell, an analyst might lower prices to stimulate demand. Optimized allocation bundles those single nights into a consecutive stay that is appealing. This allows the analyst to maintain, or even raise, price levels.”
The outcome: not only higher occupancy, but also a stronger average price per night (AVPN).
Hidde Bieze, Business Consultant Manufacturing, Retail & Leisure at ORTEC Data Science & Consulting
"The number of bookings doesn’t change, but the configuration becomes smarter, creating additional sellable weeks."
Turning Fragmented Capacity into Sellable High-Value Weeks
For example, in a recent optimization run, the engine unlocked more than 9,600 additional sellable weeks, translating into a potential €10-plus million in revenue. “That’s revenue you simply couldn’t have achieved otherwise,” says Hidde. “And importantly, the engine does not increase total capacity or occupancy, it boosts booking potential. The number of bookings stays the same, but the allocation becomes smarter, creating additional sellable weeks. That is pure value.”
The impact is measured at two levels:
• Potential revenue: the value of the newly created booking opportunities
• Realized revenue: the actual revenue generated once those opportunities are sold.
“That distinction is important,” Hidde notes. “It lets you quantify the system’s contribution even before the extra weeks are booked. And once they are booked, you can directly attribute that revenue to allocation.”
Shifting from Occupancy Metrics to Asset Value Optimization
The Allocation Engine is not just an algorithmic solution, it represents a shift in mindset: “Revenue managers often focus on occupancy rates,” Hidde says. “But a high occupancy rate means little if the remaining capacity is not sellable. You can be 90% full and still lose revenue. Smart allocation shifts the focus from occupancy to sellability.”
Why Smart Allocation is Essential for the Modern Leisure Sector
The growing interest is no coincidence. “The leisure sector is professionalizing quickly,” says Hidde. “More holiday resorts are now part of investment groups that assess return on assets with a sharp commercial mindset. Their question is: how do we maximize value with the assets we already have? Allocation becomes the logical next step, especially as the share of preferred bookings gradually declines. Not because guests are less loyal, but because holiday resorts have less flexibility to grant the preferential treatment they once could. Commercial steering has simply become stronger.”
Technical maturity also plays a role. “Data quality has improved and integrations with reservation systems are more robust. What was pioneering five years ago can now deliver substantial impact with relatively little effort.”
“Revenue management is shifting from squeezing demand to optimizing asset utilization: maximizing value from the assets you already have.”
Turning Fragmented Capacity into Sellable High-Value Weeks
The figures are impressive, but for Hidde, the real value lies in the shift in perspective. “Revenue management is no longer just about charging more, it’s about using assets more intelligently. That makes it sustainable: you’re creating value from what already exists.”
He gives a straightforward example: “If a quest books two nights and leaves behind a single night that’s difficult to sell, you can ‘nudge’ them to add a night at a 30% discount. That’s a win-win: the guest gets a deal, and you turn hard to sell capacity into revenue.”
Smart Allocation and Revenue Management in the Leisure Sector
1. What is smart booking allocation in revenue management?
Allocation management is an undervalued part of revenue management: the bridge between strategy and execution. Many organizations fine-tune pricing with extreme precision, yet lose millions through inefficient allocation of bookings to assets. That’s the hidden value waiting to be unlocked.
2. How does smart allocation increase ROI?
The number of bookings doesn’t change, but the configuration becomes smarter, creating additional sellable weeks. This allows the analyst to maintain, or even raise, price levels.
3. What is the ORTEC Allocation Engine?
The principle is simple: you shift existing bookings to close the gaps between them. Not randomly, but by evaluating thousands of possible combinations within both commercial and operational constraints. This creates complete weeks or mid weeks (consecutive days) that are attractive enough to resell.
4. How does allocation compare to occupancy rates as a performance measure?
A high occupancy rate means little if the remaining capacity is not sellable. You can be 90% full and still lose revenue. Smart allocation shifts the focus from occupancy to sellability.
5. Why is now the right time for smart allocation?
The leisure sector is professionalizing quickly. More holiday resorts are now part of investment groups that assess return on assets with a sharp commercial mindset. Their question is: how do we maximize value with the assets we already have? Allocation becomes the logical next step.
6. How quickly can benefits be realized?
In a recent optimization run, the engine unlocked more than 9,600 additional sellable weeks, translating into a potential €10-plus million in revenue. That’s revenue you simply couldn’t have achieved otherwise.
