Revenue Management

💸 In 2025, rate parity violations remain a major challenge in the hotel industry, affecting direct revenue and brand trust. Nearly 80% of hoteliers still use manual monitoring, taking up significant time. RateGain's Parity+ and Test Reservations offer automation and insight, monitoring over 800 OTAs and channels. Hotels using these tools report increased direct bookings, quicker issue resolution, and better marketing ROI. The industry's struggle with rate parity continues as OTAs employ tactics like mobile-only rates and geo-targeted discounts.

🍴 Cairn Hotel Group has launched a new menu strategy across 15 UK hotels to improve dining consistency and standards. The new menu, introduced this week, includes dishes with British and Mediterranean influences, such as fish and chips, rosemary and garlic chicken, and Tuscan-style ribollita soup. This change, driven by guest feedback and market analysis, is part of a broader effort to enhance the customer experience and support strategic growth. New commercial leadership appointments accompany this initiative.

💵 Marriott achieved a 4.3% global RevPAR growth in 2024 by focusing on total guest profitability, assisted by its 228 million Bonvoy members. Hyatt reached 5% RevPAR growth in Q4 2024. The U.S. hotel industry's record RevPAR was $101.82, 30% of brands exceeded average growth between 2018-2023. ARPA helps optimize profits beyond room revenue, aiding strategic pricing and service packaging. Global hotel market grows from $5.72 trillion (2025) to $9 trillion (2035).

🛫 Seattle, Orlando, and New York top AAA’s Labor Day travel list in 2025. Domestic flights average $720, 6% cheaper than last year, with hotels down 11% and car rentals 3% lower. Gas prices remain stable, matching 2021 summer averages. International travel is pricier, with 8% higher airfare despite 2% cheaper hotels. Vancouver is the top international destination. INRIX advises early travel to avoid congestion, with Saturday expected to be particularly busy.

🏨 Hotels are leveraging live events to boost occupancy and rates, with cities like Indianapolis, New Orleans, Toronto, and Warsaw experiencing over 100% rate increases during Taylor Swift's Eras Tour. New Orleans saw a 42.8% ADR boost during Super Bowl LIX. For the 2025 US Open, The Benjamin is offering a VIP travel package. Accor hosted 50+ events at Pullman Paris during the Olympics. Loyalty programs and event-themed packages enhance guest experiences, driving hotel success.

📈 In July, the Consumer Price Index (CPI) rose 0.2% month-over-month and 2.7% year-over-year, as reported by the Bureau of Labor Statistics. Restaurant prices increased, with full-service meals up 0.5% and limited-service meals up 0.1%. The food-at-home index climbed 2.2% annually, lagging behind restaurant price growth at 3.9%. The gap between grocery and restaurant inflation widened to 170 basis points. Tariffs effective from August 7 could further impact restaurant costs and pricing.

💸 Las Vegas' hospitality industry faces scrutiny over excessive pricing. Reports highlight $26 for water and $1100 nightly rates at Holiday Inn, sparking ethical concerns. Industry experts question the divergence between price and value, stressing the erosion of customer trust and goodwill. Dynamic pricing and market demand are cited, yet the integrity of fair pricing is under fire. As essential amenities diminish, guests endure financial strain, challenging hospitality's foundational principles.

🏨 IHG reported a 0.8% decline in UK revenue per available room (RevPAR) for the first half of 2025, ending on June 30. This performance lagged behind other regions.

📊 Hotel leaders during budget season should prioritize adopting advanced Revenue Management Systems (RMS) to enhance profitability and streamline operations. Implementing a modern RMS now allows for smooth transitions and operational advantages before the next peak season. Delaying upgrades results in revenue loss and inefficiencies. Duetto’s RP-OS combines RMS with profit insights, aiding data-driven decisions. The guide, "Plan for profit: The hotelier’s guide to smart RMS investment," offers strategies to justify RMS investments as growth enablers.