Many hotel general managers and owners have been conditioned to being underserved their revenue managers.
NB: This is an article from Topline Revenue, one of our Expert Partners
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Strategic revenue management is not just about keeping the lights on in your RMS. It’s about driving profitability, segmenting opportunity, and adapting to shifting market behavior in real time. And yes – those insights should be communicated in plain English, not just STR screenshots.
So if you’ve ever wondered, “Is this as good as it gets?” – this article is for you.
Red Flags You’re Being Underserved
Let’s start with what shouldn’t be happening. These are warning signs your revenue strategy is on autopilot:
1. Weekly revenue calls are focused 80% on last week, 20% next week
If most of the time is spent recapping what’s already happened – rather than planning forward – you’re looking in the rear view mirror instead of through the windshield.
2. There’s no segmentation in your strategy
Are corporate and OTA guests priced the same? Does your RM lump all “leisure” demand into one bucket? A one-size-fits-all approach always leaves money on the table.
3. Rate changes happen reactively, not proactively
If your RM is reacting to pickups instead of predicting them, you’re missing the window for higher-yielding bookings.
4. No clear rationale behind pricing moves
When you ask “Why did we drop rate here?” and the answer is “Just to stay competitive,” that’s not strategy – that’s following the herd.
5. No layering or mix shift plans
Your revenue manager should be planning out your mix: how many corporate rooms, how many groups, which weekends need a little direct business boost. If your hotel fills with the same channels every time, someone’s not steering.
What True Revenue Strategy Looks Like
A strong revenue manager does more than optimize rates. They:
Build and explain strategy
They should be able to articulate – clearly and confidently – why the current pricing strategy exists, what segments it’s built for, and how it will evolve. If your GM can’t explain the strategy to the front desk, the RM didn’t communicate it well enough.
Analyze beyond the obvious
Instead of saying, “We’re down because last year had a group,” a good RM will break down pacing by segment, check comp set shifts, and analyze changes in traveler behavior. They find the real reasons behind performance gaps – and then act on them.
Connect pricing to distribution
Does your RM know your OTA commission structure? Are they using it to prioritize high-margin bookings? Do they tailor rate strategies by channel? They should.
Actively manage mix, not just occupancy
The goal isn’t just “fill the hotel.” It’s to fill it profitably. That means balancing long-stay with high-rate transient, filling need periods with the right groups, and avoiding rate dilution from panic promotions.
