Even the best hotels can hit a plateau. Occupancy looks fine, reports are “ok,” but something still feels off – like revenue just isn’t keeping up with the effort.
NB: This is an article from Topline Revenue, one of our Expert Partners
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The truth? When topline performance starts to stagnate, it’s often not because of external conditions – it’s because the revenue strategy isn’t evolving with the market.
Here’s how to identify the early warning signs and get ahead of them before they turn into real performance gaps
Early Sellouts Aren’t a Win – They’re a Warning
Hitting 100% occupancy by midweek for the coming weekend might look great in the PMS. But to a seasoned RM? It’s flashing red.
Why It’s a Red Flag
Early sellouts almost always mean you’ve priced too low, too early. The market snapped up your rooms -great – but they likely would’ve paid more. That’s not optimization; that’s money left on the table.
You’re not just leaving ADR behind – you’re also:
- Losing out on premium last-minute bookings (hello, higher-margin revenue)
- Setting pricing patterns that teach your market to book early and cheap
- Making shoulder nights look artificially weak – which suppresses rate there, too
What to Do Instead
Start tracking your sellout lead time by day of week and compare it to your comp set and historical trends. If you’re routinely selling out 4–6 days ahead while they’re full closer in, it’s a pricing issue – not a demand win.
Use tools like:
- Stop-sells for low-yield channels after pace accelerates
- Rate fences to protect high-value inventory from leaking
Flat ADR Growth in a Rising Market
You’re up in RevPAR, but ADR hasn’t moved in six months? You’re not growing. You’re treading water – and probably wearing out your housekeeping team in the process.
Why It’s a Red Flag
Flat ADR in an inflationary or high-demand environment usually means you’re overly reliant on occupancy to drive topline performance.
The deeper issue? You’re likely:
- Discounting too soon (especially on shoulder nights)
- Relying too heavily on OTAs or opaque channels
- Missing upgrade/upsell revenue that’s pure profit when done right
What to Do Instead
Drill into ADR by segment and channel. Look at trends over time. Are you overly indexed to discounted corporate or OTA rates? Has your BAR rate moved at all in the past 90 days?
Use that insight to:
- Adjust your rate mix – are you giving too much to low-yield segments?
- Push conversion-driven upsells via email, check-in, or direct booking engines
- Embrace price elasticity – many hotels are afraid to raise rates even when the market can bear it
If demand’s strong and your competitors are climbing, there’s no excuse for standing still.
