Hotels rethink pricing around total guest value
A shift from filling rooms to understanding the full revenue potential of every stay
Hotels are moving beyond traditional occupancy-driven pricing models toward a broader understanding of guest value and revenue potential. Instead of focusing solely on room nights, operators are now tracking a wide range of demand signals — from airline searches to spa appointments and even pickleball court bookings — to shape more accurate and holistic pricing strategies. This shift is transforming the role of the revenue manager, who is evolving from a spreadsheet-driven analyst into a commercial strategist coordinating decisions across marketing, sales, operations and distribution. The article highlights how the industry is adopting more integrated, data-rich systems to support this new model of total-value revenue management.
Key takeaways
- Shift from occupancy to total guest value: Hotels are prioritising revenue per guest and ancillary spend potential rather than simply pushing to fill rooms.
- Broader demand signals drive pricing: Data sources such as airline bookings, events, web searches and on-property amenities now inform rate decisions far beyond basic hotel metrics.
- Rise of commercial strategy roles: Revenue managers are moving into cross-functional leadership positions, aligning pricing with marketing, sales and operations.
- Greater integration of data systems: Hotels are increasingly connecting PMS, RMS, CRM and ancillary systems to create a unified view of demand and guest behaviour.
- Automation reduces manual forecasting: Advanced analytics and machine-learning tools are replacing manual Excel-based workflows, enabling more precise and timely decisions.
- Holistic revenue thinking becomes essential: The hotels that benefit most are those that treat pricing as part of a broader commercial strategy rather than a standalone function.
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