Revenue Management

📈 Pulled from public sources, franchise fees for IHG, Marriott, Hilton, Wyndham, and Accor average 10-12% of gross room revenue. Additional costs include PIP requirements of $10K-$50K per room. Loyalty program fees are rising by 3.9% annually, outpacing the 2.7% increase in room revenue. The infographic details costs for royalties, marketing, and reservation systems, with variations in F&B royalties and technology bundling. Know these differences before franchise talks.

🏨 Hotels are evolving from departmental silos into integrated ecosystems. The shift, known as commercial convergence, combines sales, marketing, and revenue into a unified experience, emphasizing data-driven collaboration. Advanced AI tools like CRMs and predictive analytics are key, while leaders transform into "Commercial Strategists" focusing on data and empathy. Success hinges on cultural unity and cross-functional teamwork, as hotels aim to enhance guest connection and long-term loyalty, rather than just increasing bookings.

📰 2023 taught us key lessons in the hospitality industry. Revenue management emerged as a vital skill, with AI advancing in pricing and automation. Many teams struggled with alignment despite it being the year's buzzword. Personal resilience was highlighted by a move from Germany to the UAE, facilitated by family support. A travel schedule of three weeks per month showed the significance of having a support network. As we head into the new year, remember the value of teamwork and personal connections.

🏨 Canada’s hotel industry saw declines in November 2025: occupancy dropped to 61.6% (-1.0%), RevPAR to CAD120.70 (-1.0%), and ADR held steady at CAD195.94. Ontario faced the steepest drops: occupancy down 4.3% to 64.5%, ADR down 4.0% to CAD214.35, and RevPAR down 8.1% to CAD138.32. Toronto's ADR fell 10.0% to CAD274.79, and Edmonton saw occupancy plunge 5.5% to 56.2%. CoStar provides this data, highlighting post-Taylor Swift tour effects.

🇫🇷 RevPAR in France rose 1.7% to €69.7 as of the latest data, despite a 0.9-point drop in occupancy rates. The growth is attributed to a 3.2% increase in average daily rates.

📈 The Consumer Price Index (CPI) rose by 0.2% between September and November, with a 2.7% increase from November 2024, as reported by the U.S. Bureau of Labor Statistics. Economists expected a 3% to 3.1% rise. Restaurant prices surged 3.7% year-over-year, while grocery prices increased only 1.9%. Limited-service restaurant traffic dropped 2.9% year-over-year in November, marking 32 consecutive months where restaurant pricing outpaced grocery pricing.

📈 Agnelo Fernandes, CEO of Cote Hospitality, discusses using ProfitSword by Actabl to manage hotel performance efficiently. The tool provides real-time data on revenue, labor, and costs, enabling informed decision-making to boost profitability.

📈 Revenue experts Aditya Patel and Adam Dwiggins from Lighthouse manage over 30 hotels, adapting strategies to shorter booking windows and heightened rate sensitivity. Flexibility is key: switching between ADR-focused and occupancy-first approaches, and using data to make proactive decisions. In 2023, hotels face geopolitical and economic uncertainties, necessitating dynamic pricing and distribution adjustments. Tools like Rate Insight aid in strategic pricing, while a strong group base stabilizes revenue. Lighthouse supports over 70,000 hotels globally with its platform.

📍 Millions of travelers use the 8+ rating filter on Booking.com when choosing hotels, eliminating options below this threshold. This behavior impacts hotel visibility, conversion rates, and revenue. Maintaining a high reputation score is crucial, as it directly correlates to guest satisfaction and financial performance. Hotels must prioritize guest experience since it serves as a significant revenue lever.

📈 Revenue managers often face "oh shit" moments when projections falter, rates are misjudged, or market conditions shift unexpectedly. Key scenarios include misplaced confidence in rates or missed spikes in demand. Successful managers maintain emotional control, avoid panic, and strategically analyze issues. Fabian Bartnick emphasizes that effective revenue management involves decision-making without certainty and adapting quickly to changes. Experienced managers recover swiftly from these moments, distinguishing them from average managers.