For years, commercial teams – revenue management, sales, and marketing – have been measured largely on top-line performance: RevPAR, ADR, occupancy, group production, and campaign-driven bookings. In a world of rising costs and changing demand patterns, that’s no longer enough.
NB: This is an article from Otelier
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Today’s commercial leaders are shifting from revenue management to total profit optimization. That means looking beyond room revenue to consider every revenue stream (rooms, F&B, spa, golf, retail, parking, fees), and understanding how demand, pricing, and distribution decisions affect both revenue and profit.
Modern revenue and commercial platforms combine on-the-books data, market intelligence, rate shopping, guest feedback, and CRM insights to give commercial teams a multidimensional view of demand and guest behavior.
The opportunity is to connect these data sets to cost and profit data, so commercial strategies are judged not only on demand and rate, but on how much profit actually flows through to the bottom line.
What Data is Most Important for the Commercial Team?
For the commercial team, the most important data is anything that helps answer:
- Where is demand coming from, and at what cost?
- Which guests and segments are most profitable?
- How do our strategies impact both top-line revenue and bottom-line profit?
Key data sources include:
PMS & RMS data:
- On-the-books occupancy, ADR, and pickup by segment and channel
- Forecasts and unconstrained demand estimates
- Group and transient pace, wash, and displacement
Market & competitive data:
- Rate shopping and market pricing
- Future occupancy and demand indicators
- Benchmarking data for performance vs. comp set
Channel & distribution data:
- Production by channel
- Net revenue after commissions and fees
- Conversion metrics across digital channels
Guest & CRM data:
- Guest profiles and past stay behavior
- Campaign performance by audience segment
- Guest satisfaction scores and feedback themes
Ancillary revenue & booking data:
- Restaurant, spa, golf, and retail revenue by guest and segment
- Package performance
- Event and meeting space utilization
Shifting toward profit management requires a deep understanding of the correlation between demand, revenue, and profit, starting in the commercial department. That means looking at customer acquisition costs, channel costs, and ancillary spend alongside traditional RevPAR metrics.
How Commercial Teams Use Data for Smarter Decisions
Optimize channel mix and customer acquisition costs.
Not all bookings are created equal. A high-paying room from an expensive OTA or wholesaler may be less profitable than a slightly lower rate booked direct. By combining PMS and distribution data with net revenue and commission details, commercial teams can:
- Identify channels with strong net ADR and contribution to profit
- Shift inventory toward more cost-effective channels during high demand periods
- Use targeted marketing to convert OTA bookers into direct repeat guests
Even small shifts in mix – such as moving 5-10% of volume from high-cost to lower-cost channels – can significantly improve GOPPAR across a year.
