Revenue Management

🚨 A 43-day government shutdown pulled Marriott International's U.S. and Canada RevPAR into negative territory in Q4 2025. However, RevPAR increased globally by 2%, with international markets seeing a 6.1% surge. Q4 net income reached $445M, while adjusted net income was $695M. Marriott added 73,600 rooms, achieving a 4.3% net room growth, totaling 9,800 properties by year-end. In 2026, Marriott projects 1.5-2.5% RevPAR growth and plans to return over $4.3B to shareholders.

📈 Higher occupancy and revenue growth in hotels might not translate to increased profitability due to rising costs and distribution fees. Traditional metrics like occupancy and RevPAR fall short, urging a shift to profit-first strategies such as margin protection and value-aware leadership. For example, a hotel with 85% occupancy and a 210€ ADR can achieve 140€ profit per room, outperforming a 95% occupancy at 180€ ADR which results in 110€ profit per room, potentially adding over 75,000€ annually.

🏖 Pitchup.com, a leading online booking platform, surpassed £500 million in global bookings as of 2026, ranking 36th globally and 6th in Europe for OTAs. Valentine's weekend bookings rose 25% year-on-year. In January, South West England was the most affordable region at £57.14 per night. European demand surged with Portugal up 134% and Hungary and Germany up 70%. Shorter stays with a 4% decrease in duration and 5% decline in booking lead times highlight changing travel trends.

💸 RevPAR, a key hotel metric, can mislead when used in isolation. Higher RevPAR may coincide with stagnant profits due to rising costs or discounting strategies. Operational stress, such as overtime and service delays, isn't reflected in RevPAR. Short-term discounts boost RevPAR but can harm long-term pricing. Owners focus on metrics like GOP and NOI instead. RevPAR indicates performance, but true success is seen in flow-through, cost discipline, and sustainability.

💳 RMS; one year post-launch; global. RMS Pay processes over €1 billion in transactions. Operators see faster cash flow, 99.95% dispute-free rate, saving 10+ hours weekly. Roomzzz Aparthotels benefits from automation. RMS Pay, integrated into RMS, allows quick payment setup, supporting digital wallets and Buy Now, Pay Later. Popular features include Pay by Link and Charge to Room. PCI DSS-certified with fraud monitoring. RMS serves 7,000+ businesses in 70 countries.

📈 GetYourGuide's launch of multi-day tour sales faces challenges. Operators struggle with selling high-priced tours (€2,000–€7,000) due to a 30% commission, akin to cheaper activities (€50–€100). Standard 24-hour cancellation policies threaten profitability, potentially leading to significant losses from prepaid expenses like hotels and logistics. One operator paused a 5-day Italy tour. The industry is queried about successfully negotiating better terms for multi-day offerings. Are others facing similar challenges?

🏨 Amid global uncertainty, Canadian hotels achieved 66% occupancy with nearly 70 million rooms filled. Average daily rates rose by 3.5%, boosting RevPAR by 4.2%. The luxury segment excelled with an 8.7% RevPAR increase. HVS and CoStar's report covers six major markets. For comprehensive data, subscribe to the Canadian Hotel Review. Reach out to CoStar at +1 (800) 613-1303. HVS, established in 1980, offers 4,500+ yearly assignments worldwide.

💸 Medium-sized hotel chains face revenue silos due to disjointed tools and manual workarounds, creating inconsistencies and eroding confidence. Cluster Revenue Managers handle 5-10 properties without increased staff, making alignment crucial. A unified strategy with shared metrics, demand signals, and market context enhances decision-making. Duetto's platform supports multi-property coordination, reducing manual consolidation. The transition to shared outcomes fosters faster decisions, proactive planning, and sustainable growth.

📈 Fairmas, established in 2003, aids over 5,500 hotels globally with accrual accounting through software for financial planning and analysis. Accrual accounting captures revenues and expenses when incurred, not paid, providing a truer performance view. Challenges include managing multiple departments, delayed invoices, and manual adjustments. Fairmas simplifies accrual management, supports precise profit-and-loss analysis, and enhances decision-making through integrated financial insights, ensuring reliable, transparent reporting across hotel portfolios.

📈 Hoteliers are losing around 6% of revenue due to rate leakage, with OTA commissions between 15–25% worsening margins. The Hotel Revenue Leak Diagnostic identifies and quantifies revenue leaks caused by misaligned pricing, reliance on high-cost channels, missed demand signals, and poor operational practices. The tool provides insights into channel and pricing imbalances and potential financial impacts. It's ideal for independent hotels and operators seeking clarity on revenue issues before further investments.

📍 In December, European hotels saw a RevPAR increase of +6.1% to €80.2, with occupancy rising by +2.2 percentage points to 63.7% and average rates increasing by +2.4% to €125.8. The Spain–France–Italy trio and the Alpine arc drove this growth, while corporate markets like Germany and parts of Benelux showed mixed results. December acted as a year-end boost for hoteliers, benefiting from high-demand periods and premium customers.

🛬 Jan 26, 2026, U.S.: Hotel rates soared 20.5% to $229, spurred by operating costs and upgrades, while airfares fell 6% to $836, and car rentals dropped 4% to $75. Rail fares increased 7% to $255. Based on 700,000 bookings, corporate travelers favored 2.5-day trips and midscale hotels near business hubs. Secondary cities like Green Bay and Fresno saw increased demand, indicating a shift toward efficient, value-driven travel strategies.

🗺️ Pro Football’s finale in Santa Clara, February 8, 2026, shows a 395% YoY search increase, with average hotel rates at $415/night. Winter Sports' event in Northern Italy (February 6-22) sees Milan searches up by 135% and Cortina d’Ampezzo by 280%. Route 66’s centennial in May drives demand, with Chicago up 30% and San Bernardino 50%. A global soccer tournament in June sees Los Angeles hotel demand rise 205%, prices at $805/night.

📈 Hotels utilizing Journey's strategy from the "Stay for the Story" white paper saw up to 95% increased spend when offering bookable experiences like spa treatments and dining. On average, adding extras at booking boosts revenue by 16%. Establishments featuring spa services saw a 44% increase in spend, and advertising returns improved from 13 to 30. CEO Simon Bullingham emphasizes managing experiences to optimize growth, addressing rising costs and reducing OTA reliance.

📊 Pick-up, the "Movement," tracks recent booking activity, while Pace, the "Comparison," measures current status against benchmarks like Same Time Last Year (STLY). Both metrics are crucial for strategic planning. Volume Pace assesses room nights, and Rate Pace examines average daily rates (ADR). High Volume/Low Rate implies high operational costs, while Low Volume/High Rate suggests exclusivity. To optimize revenue, balance distribution channels and feeder markets, ensuring a strategic mix of group and transient business.

📈 U.S. hotel industry, 4-10 January 2026, saw year-over-year declines. Occupancy fell to 48.1% (-2.4%), ADR to $142.85 (-0.9%), and RevPAR to $68.69 (-3.3%). Tampa had sharp declines: occupancy 60.9% (-23.2%), ADR $156.81 (-12.0%), RevPAR $95.44 (-32.4%). San Diego's ADR dropped to $161.76 (-9.5%), RevPAR to $82.72 (-22.5%). St. Louis improved with occupancy 46.9% (+18.1%), ADR $117.19 (+14.2%), RevPAR $54.92 (+34.9%), aided by the U.S. Figure Skating Championships.

📈 In 2025, global RevPAR grew by 19% since 2019, but booking costs rose by 25%. The Americas had an average flow-through of 18%, while Europe was at 29%. Duetto and HotStats, through their Revenue & Profit Operating System, reported a 6.8% increase in GOPPAR, with a 2.1 percentage point improvement compared to industry averages. The RP-OS led to an average 4 percentage point improvement post-implementation. A summit on profit and revenue management is scheduled for April 16, 2026, in Florida.

📈 Duetto and HotStats revealed that global RevPAR increased by 19% since 2019, but Booking Costs PAR rose by 25%, impacting profitability. In 2025, the Americas' flow-through averaged 18%, while Europe reached 29%. Hoteliers need integrated tech strategies to manage revenues and costs effectively, with Duetto's RP-OS highlighted as a solution. Alex Zoghlin and Michael Grove emphasize the necessity of aligning revenue strategies with cost control to secure financial stability.

📈 Hotel revenue management blends data-driven tools like RMS and market intelligence with manual forecasting. Weekly revenue meetings ensure budget alignment across teams. Systems centralize data, analyzing past trends, while human insight addresses unpredictable factors such as buyouts, major group bookings, and local events. This approach adapts to hotel types, influenced by music events, weather, and economic changes, emphasizing a balance of automation and human input for optimal accuracy and flexibility.

💳 Jan 12, 2026, hoteliers worldwide are recognizing the strategic role of payments. Modern payment strategies are crucial for guest satisfaction, conversion, and efficiency. Diverse payment options improve booking conversion and reduce reliance on intermediaries. Streamlined payment systems enhance operational efficiency, reducing errors and manual tasks. Flexibility in payment methods caters to international travelers and corporate clients. Payment decisions impact cash flow and revenue quality, making them integral to commercial strategy. Source: PhocusWire.

📈 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.