If you're leading revenue strategy for a hotel, you probably already know the fundamentals. What separates a well-run property from one that consistently outperforms its competitive set isn't just systems or software. You’ll need to fine-tune daily execution, sound judgment and market fluency.
In this guide, I’ll walk through six practical strategies I’ve used across dozens of hotels, particularly in competitive markets. These aren’t conceptual ideas. They are actions your team should revisit weekly, if not daily, to protect your bottom line.
1. Check supply and demand multiple times daily
Dynamic pricing is only effective if you track market activity in real time. That means looking beyond your property management system reports and watching what’s happening in your comp set throughout the day.
If two or three hotels nearby pick up group business, that’s an immediate signal. Their group blocks reduce overall supply, but the market demand hasn’t changed. That’s when your average daily rate should start climbing.
2. Use stay controls to balance high-demand nights
Strong demand doesn’t always spread evenly throughout a week. That’s where stay controls can make or break your occupancy strategy.
If Tuesday is filled with corporate travelers and Monday and Wednesday are underperforming, you’ve got an opportunity. Rather than booking Tuesday-only stays, require a two-night minimum or adjust rates on shoulder nights to encourage multi-day bookings.
In peak periods such as Comic-Con or the Super Bowl, these controls are critical. Without them, you may achieve high occupancy on one night while leaving adjacent nights half-empty.
Review stay pattern reports weekly. Apply length-of-stay restrictions proactively instead of reactively.
3. Overbook your hotel with discipline
Overbooking remains a necessary part of revenue optimization. Airlines have done it for decades. You need to base overbooking decisions on actual no-show and cancellation patterns by day of week and segment. If history shows 5% of guests cancel or no-show on Thursdays, your system should be prepared to book that many extra rooms.
Of course, mistakes happen. That’s why relationships with nearby hotels are essential. In rare cases, if you walk a guest, you must cover their stay elsewhere and provide a seamless experience.
Track no-show and cancellation rates monthly by channel. Adjust your oversell limit accordingly and always have a walk strategy ready.
4. Prioritize high-margin hotel booking channels
Direct bookings through your website or reservation team offer the strongest margins. That’s why managing channel mix is a critical revenue task, especially when demand is building.
If your pace report shows high pickup for a coming weekend, that’s your cue to close out discounted channels such as AAA, AARP or certain online travel agency promotions. The same applies to preferred corporate rates, unless they’re contractually locked.
Many hotels still fill rooms on low-yield channels even when full occupancy is guaranteed. That’s a missed opportunity to raise ADR and reduce commission costs.
Wondering how to prioritize those high margin channels? Set channel thresholds based on forecasted occupancy. Once you hit 80% pace, start closing discount rates and protecting BAR inventory.
5. Manage group and corporate commitments
Group business can be profitable, but it comes with risk, especially when it’s tentative. If a group requests a hold on 30 rooms for a future date but hasn’t signed, you need to assess the likelihood they’ll materialize.
If that group cancels or under-delivers, you’re left with inventory and limited time to recover. Similarly, with corporate travel, don’t sell out too early at low rates. Your most frequent and loyal business travelers often book late. If you’ve already filled with lower-rate reservations, you’ve missed a higher-value opportunity.
6. Don’t rely on tools alone for hotel decisions
There’s no shortage of revenue management systems today. Many use algorithmic forecasting, machine learning and even AI. While these tools are useful, they don’t replace the hands-on judgment of someone who knows their market.
You still need to decide when to walk a guest, how much to overbook or whether to accept a group that might wash. No system can fully account for local events, travel disruptions or the behavior of your comp set, and make certain that your front desk is just as knowledgeable on nightly rooms trends as your revenue manager.
Hotel revenue management tools to consider
- IDeas: Industry standard revenue management system with deep integrations.
- Duetto: Flexible pricing rules and demand forecasting.
- Atomize: Good for smaller hotels and independents.
- Revenue Hub: Great for strategy content and rate optimization guidance.
- OTA Insight: For rate parity and market benchmarking.
- STR: Use for comp set and market data, not pricing directly.
Revenue management is not just about filling rooms
Revenue management is not just about filling rooms. It’s about filling the right rooms, at the right rate, through the right channel. It takes both skill and experience. The best operators know that well. Enjoy the balance of summer, and make it count!
Robert Rauch, CHA, has been an owner-operator of hotels for several decades and is founding chairman of Brick Hospitality, owner of R. A. Rauch & Associates, Inc.
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