The role of revenue management is evolving fast. The days of focusing solely on room rates are behind us. Today’s most successful hotels are thinking holistically – monetizing every part of the guest journey, designing offers around guest needs, and running controlled experiments to refine their strategy.
In a recent Matt Talks episode, Matt Welle, CEO of Mews, sat down with Henry Blackman, Director of Product GTM Strategy, to discuss how hotels should rethink revenue strategy. Blackman’s philosophy is clear: numbers only ever really do one of three things. They go up, they go down, or they stay the same. You don’t need perfect data before you act. Instead, hotels need to simplify decision-making, empathize with guests, and test ideas in controlled ways.
Here are the key takeaways for revenue managers, GMs and hotel owners who want to move from traditional revenue management to total revenue strategy.
Trust your data, but don’t wait for perfection
Many hoteliers hesitate to act because they don’t fully trust their data. But data is a proxy for human behavior, and human behavior is never perfect. Instead of waiting for clean, flawless data, focus on identifying patterns and testing assumptions. Cross-check different data sources, build simple hypotheses, and act on the insights.
For example, if you suspect business travelers are more likely to book early check-in, don’t wait for a year of historical data. Test it for a month. Introduce early check-in at a discounted rate, measure conversion and profitability, and iterate. Action beats paralysis.
Start with empathy, not revenue
Revenue is the goal, but it’s not the starting point. The hotels seeing the strongest performance are the ones that deeply understand their guests. Instead of asking, “what can we sell?” they ask, “what is this guest really here for?”
This requires moving beyond management meetings and engaging with guests directly. Frontline staff are often the best source of insights. Encourage them to ask open questions during check-in, log what guests care about into profiles, and share feedback regularly. Even small personal touches – like recommending a local coffee spot to a repeat guest who loves a particular coffee type – create outsized loyalty and higher spend.
Technology can help too. Use review scraping tools, even ChatGPT, to understand what guests talk about positively or negatively. Interview regulars over coffee. Learn what drives their loyalty. And act on it.
Upselling only works when it’s guest-centric
A common hotel mistake is adding random upsell options to the booking flow and assuming they’ll work. When they don’t sell, teams conclude that upselling doesn’t work. But the problem is rarely upselling itself – it’s relevance.
Be intentional and thoughtful by embedding relevant add-ons. A destination property might bundle spa treatments, while a business hotel could promote co-working space or express laundry. These upsells flow disproportionately to the bottom line because they use existing resources with minimal extra cost.
One standout case is Puro Hotels in Poland. They segment guests by purpose of stay – work, leisure, or transit – and offer curated experiences that match those needs. Rooms are secondary in their booking flow. Experiences take center stage, and it works.
Think beyond rooms
Traditional revenue management is room-centric. But the most forward-thinking hotels are shifting to total revenue management. This means monetizing every space and service: parking, meeting rooms, bicycles, spa treatments and even early check-in.
The most profitable upsells are those with minimal incremental cost. For instance, selling an empty upgraded room type or early check-in is far more profitable than breakfast, which requires food and staff. Revenue strategists need to focus on high-margin opportunities and track profitability, not just revenue.
From revenue managers to revenue strategists
The role of the revenue manager is changing. So what are the differences between traditional revenue managers and the new generation of revenue strategists?
- Broader scope: They consider total guest spend, not just room rates.
- Guest-centric thinking: They empathize with guest motivations and segment by behavior.
- Data fluency: They use modern RMS tools, market data, and guest profiles, rather than relying only on historical room data.
- Cross-department influence: They work closely with housekeeping, F&B and front office to roll out revenue initiatives.
- Testing mindset: They run structured experiments, measure results, and iterate.
Keep experiments simple
Experimentation doesn’t have to be complex. In fact, it works best when it’s simple. Start with one experiment at a time. For example, test early arrival pricing at kiosks for two months. Measure conversion and profitability. Share results with department heads to build excitement before moving on to the next test.
The key is to treat tests as controlled experiments with clear hypotheses, not random attempts. They’re worth it not because you might sell some of the item you’re testing, but because of the information you get out of it.
Use psychological tactics
There are two psychological principles that hotels can readily borrow from other industries:
- Framing: Present upsell options in a way that nudges behavior. For example, adding a high-priced “extra large” option, even if few buy it, can shift demand toward a more profitable mid-tier option.
- Scarcity and urgency: Phrases like “only two rooms left at this price” or “offer valid for 30 minutes” encourage faster decision-making.
Hotels can also use sensory triggers. The smell of fresh cinnamon rolls in a lobby, for example, can drive impulse purchases without any sales pitch. (I’m hungry just writing about it.)
Simplify your upsell strategy
Finally, don’t underestimate the importance of simplicity. Offering 20 upsell options overwhelms guests and leads to no action. Focus on a few relevant, high-margin products at each stage of the guest journey. For example:
- Pre-arrival: early check-in, room upgrades
- Mid-stay: spa treatments, restaurant reservations
- Departure: late check-out, airport transfers
Too much choice leads to indecision. Simplification drives conversion.
The future is solutions, not services
Hospitality is moving from selling services to selling solutions. Revenue managers who embrace this shift – who understand guest needs, monetize experiences and influence cross-departmental action – will become revenue strategists. When guests win, hotels win too.
Another important thing to remember: it’s a team effort. For example, you can’t just add early arrival upsells into the system and think your job’s done. You need alignment across housekeeping, your front desk needs to be trained, and the right process must be put in place. If you’re making revenue tests or changes, communicate it clearly with those who need to know.
That said, the opportunity is clear. Start small. Test, learn and iterate. The hotels that master total revenue strategy will not just fill rooms – they’ll maximize the value of every stay.
Want to optimize your hotel’s revenue with AI-powered pricing? Atomize, part of Mews, could boost your RevPAR by up to 35%.
About Mews
Mews is the leading platform for the new era of hospitality. Powering over 12,500 customers across more than 85 countries, Mews Hospitality Cloud is designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub and Airelles Collection. Mews was named Best PMS (2024, 2025) and listed among the Best Places to Work in Hotel Tech (2021, 2022, 2024, 2025) by Hotel Tech Report. Mews has raised $410 million from investors including Growth Equity at Goldman Sachs Alternatives, Kinnevik and Tiger Global to transform hospitality.
