Two dominant organizational models for commercial work in hotels have emerged. The first is the evolution of a traditional structure, which involves appointing a Commercial Director to unify the “big three” – Marketing, Sales, and Revenue Management.
NB: This is an article from Demand Calendar
Subscribe to our weekly newsletter and stay up to date
The second approach is more radical and guest-centric: appointing a Commercial Leader responsible for orchestrating the entire guest journey, from initial awareness to post-stay advocacy. Let’s explore the pros and cons of each model to determine which is right for your hotel.
Model 1: The Commercial Director (Unifying the Big Three)
This model is a significant step forward from the siloed structures of the past. Instead of operating independently and often at cross-purposes, Marketing, Sales, and Revenue Management are brought together under a single leader. The integration eliminates the “blame game” between departments and fosters shared ownership over the hotel’s commercial success.
What it looks like: A Chief Commercial Officer or Commercial Director oversees the heads of three distinct departments:
- Head of Sales: Responsible for group bookings, corporate accounts, and B2B relationships.
- Head of Marketing: Responsible for brand awareness, digital presence, content, and attracting potential guests.
- Head of Revenue Management: Responsible for pricing, inventory, forecasting, and distribution strategy.
Pros and Benefits
- Deep Functional Expertise: Each department is led by a specialist with in-depth knowledge and expertise. You have a seasoned sales leader driving group business, a marketing guru building the brand, and a revenue expert optimizing every dollar. Each core commercial discipline achieves a high level of proficiency.
- Clear Accountability & Alignment: With one leader at the helm, the goals of the three departments can be aligned. It’s no longer about who’s doing what wrong, but how they can collectively improve performance towards a common business purpose.
- Breaks Down Critical Silos: This structure is the perfect antidote to the classic conflict where Sales blames Revenue for high rates, and Revenue blames Sales for not closing leads. It fosters collaboration and a unified profit and loss (P&L) responsibility.
Cons and Challenges
- The Risk of New Silos: While the major walls are torn down, the departments can still operate with a function-first mindset. Marketing may focus on website traffic, Sales on lead volume, and Revenue on ADR, without a holistic view of the overall guest experience.
