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How to Rebuild RM Around Profit, Decisions, and the Guest

  • Anders Johansson
  • 2 October 2025
  • 4 minute read
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This article was written by Demand Calendar. Click here to read the original article

image

Kill #1: “The spreadsheet RM can just become a strategist”

What to kill

The automatic promotion path from reservations → RM → “strategist.” Being brilliant at fences, pace reports, and rate plans does not equal strategic leadership.

Why it fails

Strategy is a choice architecture, not a reporting skill. It’s about which guests you will win, what promise you’ll deliver, how you’ll monetize (channel/economic model), and where you’ll allocate scarce resources. Most RMs have been rewarded for precision in the present (forecast accuracy, fence logic), not for making and defending future-facing trade-offs across marketing, sales, operations, and finance. Expecting a spreadsheet specialist to “scale up” to a cross-functional strategy, without redesigning the job, creates role confusion and leads to slow, conservative decisions.

Install instead: two distinct tracks.

Commercial Strategy Lead (GM or Commercial Director)

  • Owns the big choices: target guest, positioning, channel architecture, product/packaging roadmap, and the 3–5 year economic model. Accountable for coherence across sales/marketing/ops and for price integrity via perceived value.

Revenue/Profit Systems Lead (modern RM)

  • Runs the engine so strategy moves quickly and profitably: data pipelines, automation guardrails, CAC discipline, experiment design, profitability analytics, and the weekly execution cadence. Escalates only genuine exceptions; retires manual reporting.

Together: strategy decides where and how to win; systems make it fast, measurable, and repeatable.

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Quick wins (implement this month)

  • Publish role charts and stop referring to the RM as “the strategist.” Make the new mandate explicit.
  • Launch a rotation plan (marketing, sales, ops, finance) for anyone aspiring to strategy; require a portfolio of decisions made, not tenure in Excel.

Kill #2: “We have a strategy for everything”

What to kill

Strategy sprawl: the never-ending “pricing strategy,” “distribution strategy,” “OTA strategy,” “social strategy”… Each mini-“strategy” spawns its own deck, KPIs, and owners—until nothing aligns.

Why it fails

Proliferation dilutes accountability and breeds conflicting playbooks. Teams optimize their slice, not the business as a whole. You get motion without momentum.

Install instead: one Hotel Strategy Kernel.

A single, shared choice set everyone can point to:

  • Diagnosis — Who we win with and why (and where we’ve been losing). Name the target guest, the jobs to be done, and the obstacles.
  • Guiding Policy — The few rules that channel action (e.g., direct-first for repeat/leisure; premium via value-rich packages; fewer, stronger partners; protect price integrity).
  • Coherent Actions — Tactics and projects that ladder up: pricing rules, media plan, OTA terms, website offer architecture, upsell flow, M&E minimums, loyalty mechanics.

Operating cadence change

Replace the weekly “Revenue Meeting” with the Commercial Action Cadence (weekly, 30–40 min)—no slide decks. Every item arrives as a one-page decision brief. We approve up to three actions or corrections that align with the strategy kernel, assign owners and dates, and log rollbacks if results miss targets. If it’s just an update, it doesn’t belong.

Enforcement rule

Every tactic must explicitly reference which part of the kernel it serves (Diagnosis insight, Guiding Policy rule, or specific Coherent Action). If it doesn’t map, it doesn’t ship.

Kill #3: “We need RMs who are great storytellers.”

What to kill

The performative “storytime” requirement. You don’t need theater; you need decisions.

Why it fails

Executives aren’t starving for charts—they’re hungry for clear recommendations with P&L impact and risk. Long narratives delay choices, blur accountability, and turn meetings into recitals.

Install instead: the 1-Page Decision Brief (no slides)

Every proposal fits on one page and ends with a commitment:

  • Context (2–3 bullets): What changed, and why now?
  • Insight: The anomaly or signal we’re acting on.
  • Options (A/B/C): Each with CAC, flow-through, and key risks.
  • Recommendation: One line, with owner and due date.
  • Metric to watch next week: The leading indicator that proves we’re right—or triggers a rollback.

Practice to build

  • Train decision writing, not narrative arcs.
  • Measure insight → decision → action cycle time and aim to compress it week over week.

Short, sharp, and accountable beats “compelling stories” every time.

Kill #4: “No one mentioned the guest.”

What to kill

Inside-out revenue management—treating price fences and inventory tricks as the value, instead of the experience that creates pricing power.

Why it fails

Pricing power = perceived value > paid price. Perception is built across the guest journey (Attract → Capture → Prepare → Deliver → Review), not in the rate loader. Discounts can shift demand, but they rarely foster loyalty, repeat business, or price integrity.

Install instead: Guest-First Operating Model.

  • Owner: GM as Guest Journey Owner (Attract → Capture → Prepare → Deliver → Review). One accountable leader for the end-to-end promise.
  • Commercial Strategy Lead: Translates the promise into positioning, packaging, channels, and guardrails (e.g., direct-first rules, parity boundaries, offer architecture).
  • Profit Systems Lead (RM): Quantifies demand quality (NetRevPAR, CAC%, contribution margin, flow-through) and runs experiments that raise perceived value (bundles, add-ons, experience design) rather than racing to the bottom on rate.
  • Voice of Guest loop: NPS/CSAT, reviews, and post-stay surveys feed BI. A monthly “Why we won/lost” readout drives changes to packages, policies, and on-property experience.

How it shows up in the Action meeting

  • Each decision brief must clearly state which journey stage it improves and explain how it enhances perceived value.
  • Price moves without a guest-value change are flagged as temporary and require an exit condition.
  • Packaging beats discounting by default; rate cuts are the exception, not the strategy.

Quick wins (this month)

  • Replace “10% off” with a value-rich weekend package (e.g., BF + late checkout + parking) targeted to the defined guest.
  • Wire review themes into offers (e.g., “no nickel-and-diming” → transparent inclusions).
  • Add a post-stay “Would you buy this again?” question; feed results into next week’s decision briefs.

Guest-first doesn’t mean “soft.” It’s the fastest path to durable price integrity, a healthier mix, and a business that wins on value—not just on price.

Conclusion: Bring It Home

Kill the myths. Strategy is one choice set, not many. Storytime is optional; decisions are not.

Install the OS. One strategy, two distinct roles, one-page decisions, and guest-first economics.

Measure what matters. NetRevPAR, CAC%, flow-through, and—above all—decision speed.

Do this and the flywheel turns: fewer meetings, faster moves, stronger pricing power—and a team finally aligned around the guest and the P&L.

Next step: run your first Commercial Action Cadence this week. Bring only one-page decision briefs, approve up to three moves, assign owners and dates, and log rollback triggers. Then measure what changed.

Please click here to access the full original article.

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