top of page


As the hospitality landscape continues to evolve and especially as we begin to see the benefits of the COVID-19 vaccination and a return to normalcy, reliance on analytics and business intelligence is growing exponentially. The Revenue Management leader role has emerged as the natural leader of the analytics boom since the Revenue Management professional is inherently analytical. TRADITIONAL HOTEL DEPARTMENTS Traditionally, in a hotel environment, each department manages its own operations, forecasting, and budgeting of expenses and revenues. Then, departments only connect when crossover is needed. Wouldn’t it be smarter to drive the top line revenues from one resource, so the entire organization was better aligned to facilitate the most revenue to the bottom line? What is the best way to move from this traditional hospitality set up of Sales and Marketing, Revenue Management, F&B, and Ancillary department silos into a coherent Revenue Optimization focused organization? Big changes can be scary. Sometimes the best way to facilitate change is by using an outside resource. That way, we facilitate a more effective decision-making process, and all involved can facilitate change. Then there are a few items to ensure moving towards a full property Revenue Optimization strategy is successful. WAYS TO BECOME A REVENUE OPTIMIZATION DRIVEN ORGANIZATION DATA EDUCATION Internal teams must be aligned with a holistic revenue strategy. Data and analytics are collected from multiple sources to make one cohesive strategy and direction. Educating each department as well as stakeholders will ensure everyone is on the same page. Sample data to employed into your revenue optimization strategy:

  • STR

  • Rate Shopping Services

  • Property Management System reporting

  • Internal financial system reports

    • Outlets

    • Banquets and Catering

    • Spa and Golf

    • Other ancillary departments

  • Revenue Management System, i.e., IDeaS, Duetto, etc.

  • Sales and Catering Systems

  • Customer online reviews

DEFINE KPIS The data above should align each department individual decisions, so they understand the full impact of the total revenue received. It will also ensure a much quicker buy in to the changes. Above and beyond just reviewing RevPAR and RevPAR index, ensure the team looks at these metrics of success.

  • RevPASH (Revenue per available seat hour for Food and Beverage)

  • RevPATH (Revenue per available treatment hour for Spa)

  • RevPATT (Golf’s revenue per available tee time)

  • STR’s TRevPar Index Year over Year change (Total Revenue per available room)

  • Gross Revenue growth

  • Customer Satisfaction Indexes

REDEFINE THE HOTEL ORGANIZATION To truly champion revenue optimization, the property must remove the inherent revenue silos within each department. It is imperative to garner clear authority to drive revenue decisions based on analytics. Refrain from allowing the phrase “we’ve always done things this way,” to enter the conversation. Restructuring to truly focus on total property revenue management is a completely new way of thinking. Watch the creativity burst forth when Sales and Marketing, Revenue Management, Food & Beverage, Spa, Golf, Cabana Sales, etc. all begin to work together! BE COLLABORATIVE Once the combined Revenue Optimization team is educated and there is a clear understanding of the analytics, ensure that collaboration continues with all revenue stakeholders to promote the best strategic processes. MODIFY Roll out the new processes and be nimble! Revenue data is an ever changing, ever evolving creature. Stay in tune with trends and stay ahead of the curve. Only a holistic approach with full team involvement will lead to successful hotel revenue optimization. That, supported with proper data and analytics, will allow for enhanced strategies to be developed in both the short and long term. This article originally appeared on Revenue Hub.

16 views0 comments


bottom of page