Technology, guest expectations, and distribution channels are evolving rapidly, and revenue leaders must adapt with agility.
In our latest 3+3+3 conversation, with Veit Meier of berner+becker, one of our Expert Partners, and Thibault Catala of Catala Consulting we discuss another 3 topics: the potential of personalised pricing, the need to redefine work-life boundaries in revenue management and why are some markets seeing an increase in direct bookings which corresponds with a decrease from Booking.com.
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Personalised Pricing: Opportunity or Risk? (6m21s)
Personalised pricing – charging guests different rates based on their individual profile, history, or behaviours – is gaining traction in industries such as airlines and retail. On the surface, the concept feels like the logical evolution of revenue management. Hotels already sit on mountains of guest data, loyalty information, and booking behaviour insights. Why not use this to tailor rates at a one-to-one level?
But hotels are not selling airline seats. We are in the business of hospitality. If two guests meet at the bar and realise one is paying €100 more for the same room purely because of location or search history, will trust be eroded? Perception of fairness matters deeply in hospitality. Guests may accept paying more for additional services or personalised add-ons, but not for the exact same product under opaque conditions.
What seems more realistic in the near term is sharper segmentation: dynamic rates based on loyalty tier, booking window, device, or interest-driven packages. Attribute-based selling – allowing guests to personalise their stay by choosing and paying for specific features – may also strike the right balance between revenue optimisation and guest transparency.
The lesson: explore personalisation, but always through the lens of fairness and guest trust.
Always-On Revenue Management: A Strength or a Burnout Risk? (20m37s)
Revenue management is, by nature, a never-ending cycle. Tomorrow’s forecast begins today. OTAs never sleep, and neither do competitor rate changes. Many revenue leaders feel compelled to be “always on,” responding instantly to client, owner, or GM requests.
Yet this mentality carries significant risks. Without boundaries, the constant demand erodes energy, clarity, and long-term decision-making ability. As several industry leaders have pointed out, “always on” cannot be the default. True emergencies – system outages, last-minute group deals, sudden revenue shocks – require responsiveness. But most tasks are important, not urgent.
If performance targets are met and revenue is optimised, the number of hours spent online matters less? Teams that protect boundaries, prioritise energy management, and create clear definitions of “emergency” not only deliver better results but also retain talent in a notoriously high-pressure field.
Distribution in Flux: What’s Behind Booking.com’s Decline? (36m08s)
Recent data suggests a surprising trend: booking.com is losing share in certain markets, with some hotels seeing significant shifts toward Expedia or direct bookings. Several factors may be at play.
- Dilution of hotel visibility: Booking.com has dramatically increased listings of apartments and alternative accommodations, crowding out hotels.
- Legal and regulatory headwinds: from lawsuits to EU scrutiny, Booking.com faces challenges that could weaken its dominance.
- Experimentation by hotels: many properties are actively investing in digital marketing and loyalty strategies to claw back direct share.
The jury is still out on whether this represents a short-term anomaly or a structural shift. But one certainty remains: distribution is becoming more chaotic, not less. OTAs, Airbnb, metasearch, and even AI-driven search are reshaping how guests find and book hotels.
Final Thoughts
For hotel leaders, the message is clear:
- Experiment boldly with personalisation, but never lose sight of fairness and guest trust.
- Protect your teams and yourself by setting boundaries, focusing on output, and avoiding the burnout trap of “always on.”
- Diversify and defend your distribution mix, because the balance of power between OTAs, direct, and new channels is shifting fast.
The future of revenue is not about choosing between technology or humanity. It’s about weaving them together – using data and AI to sharpen decisions, while keeping hospitality’s human core at the centre.
