Revenue Management

A hotel Revenue Management System (RMS) is designed to help you sell the right room, to the right guest, at the right price. But what happens when your hotel RMS…

📈 Tripadvisor's hotel revenue dropped 23% in Q2 2026 to $117.9 million due to decreased free search traffic. Marketing costs increased as Tripadvisor paid for visitors. Hotel metasearch usage fell from 71% in 2013 to 44% in 2023; 83% now use Google. Tripadvisor expects a further 20-23% Q3 decline. While hotel clicks are costlier, reviews remain influential. Viator bookings grew 10%. Tripadvisor's split between hotels and OTAs remains unclear.

💰 Late demand is challenging hoteliers, with bookings often made within 14 days of arrival, making previous booking patterns unreliable. Jon Siberry of Z Hotels and Sarova Hotels suggests more than one strategy, like flash sales, to fill rooms. Flash sales target impulse buyers via platforms like Secret Escapes and Travelzoo, but careful channel selection is crucial due to commission costs and audience fit. Focusing on cost, customer fit, and rate integrity helps navigate changing booking behaviors.

📊 During peak season, hotels undergo stress tests for people, processes, and tech, exposing silos that risk revenue loss. Integration of sales, catering, and operations data is crucial to managing group bookings and events. Hotels should leverage data from busy periods to enhance revenue management strategies, aiming for a holistic view of group value and better decision-making. By analyzing historical patterns, hotels can anticipate demand, refine strategies, and drive predictable year-round revenue.

📈 2026, AI transforms dating a revenue manager! Forecasting evolves with AI making predictions in 14 seconds. A distribution audit now decides dinner plans, optimizing reservation platforms. Inventory management remains crucial—claim calendar slots early! Revenue managers still search for the best prices, delaying purchases. They maximize Total Relationship Value, analyzing every interaction. AI analyzes relationship KPIs, but context remains key. Real-time flexibility and boundaries like floors and ceilings are essential. Despite tech advances, revenue managers remain data enthusiasts, seeking optimal value.

🍽 Britain's top restaurant groups in August 2026 saw a 9.6% increase in at-home sales compared to August 2025, driven by expanded delivery and takeaway services. This growth rate surpasses the inflation rate by over three times, highlighting the successful adaptation of restaurants to changing consumer preferences for dining convenience.

🏠 Luxury hotels can expand revenue by attracting non-staying guests to facilities like restaurants or beach clubs. A CBRE report shows a 4.3% rise in food & beverage revenue in 2025, compared to a 1.1% growth in room revenue. The Chemin à la Mer restaurant at Four Seasons Hotel New Orleans moved from the fifth to the first floor on September 23 to target locals. It highlights the importance of strategic partnerships and adapting venues to attract external audiences.

🍽 Food and drink prices in the hospitality sector increased by 0.4% month-on-month in August, according to the Foodservice Price Index from Prestige Purchasing and NIQ. The price rise highlights ongoing inflationary pressures in the supply chain, influenced by global commodity markets and weather-related issues. High inflation was particularly noted in the sugar, jam, syrups, and chocolate categories.

🏨 Sarah Chen faced a choice between a $189 non-refundable hotel rate and a $340 refundable rate, opting for the latter due to anxiety and control needs, despite low cancellation likelihood. Approximately 90% of European hotels use dynamic pricing, yet ignore behavioral factors like anchoring and loss aversion. Integrating psychology with AI-driven pricing could enhance trust, loyalty, and revenue by addressing consumer behavior more effectively.

📈 Three points of occupancy loss in a 200-room hotel at 180 euros per night results in approximately 2,190 fewer room nights and about 394,000 euros in lost room revenue, ultimately costing around 256,000 euros after accounting for acquisition costs and room service expenses. Standing still costs about 7 euros of extra guest spend per occupied night. Without profit evidence, strategic shifts in guest mix appear as bad years during owner evaluations.