Let’s be honest, running a hotel today isn’t just about keeping guests happy and rooms filled. It’s about making every corner of your property work harder, from rooms and restaurants to spas and parking spots. That’s where revenue management comes in—not as a buzzword, but as a serious advantage.
If you’re a GM who’s still relying on seasonal price charts or just going by gut feel, it’s probably time to take a closer look at what revenue management actually means now.
It’s Not Just About Raising Prices
People often confuse revenue management with just adjusting room rates. That’s part of it, sure—but the real game is about timing, targeting, and knowing what your guests are willing to pay at any given moment. It’s about selling smarter, not harder.
And it’s not only about rooms anymore. Think: spa appointments, event spaces, breakfast upsells, early check-ins, and even that bottle of wine in the minibar. Every service has potential—if you’ve got the right tools to optimize it.
Why the Market is Exploding
I recently came across a report by Roots Analysis that really put the scale of this in focus. They project that the revenue management market is set to grow from USD 22.82 billion in 2024 to USD 72.68 billion by 2035. That’s a massive jump—more than triple in just over a decade—with a compound annual growth rate (CAGR) of 11.10%.
This isn’t a niche trend. This is where the entire industry is heading.
What’s Driving the Shift?
The biggest change is how accessible data has become. With the right system in place, you can actually see when demand is likely to spike, which channels are most profitable, and which guests are more likely to respond to offers. It’s no longer about waiting until the end of the quarter to see how you did—it’s about adjusting midweek, even mid-day, based on what’s happening.
Also, automation helps. You don’t need to crunch numbers all day. Today’s revenue management platforms are smart enough to recommend changes and even implement them for you, depending on how hands-on you want to be.
It’s About Working Together
Revenue management only works if it’s not siloed. If your sales team is offering discounts and your marketing team is targeting the wrong audience, you’re going to lose out. Everyone—from front desk to F&B—needs to understand the bigger picture. Even a well-timed upsell at check-in makes a difference.
And the data? It can guide everything—from how you package deals to how you train staff.
Starting Small is Fine
You don’t have to overhaul your systems overnight. Even just tracking patterns in booking behavior, trying dynamic pricing on weekends, or bundling services can start to show results. The key is to make changes based on real numbers, not assumptions.
Think of it as learning how to spot opportunities faster—before the room sits empty or the service goes unused.
A New Era for Hotel GMs
Running a hotel has never been easy, and it’s only getting more complex. But this is also a chance to take control. Revenue management gives you the tools to make smarter choices, respond quicker, and build a more profitable business without compromising guest experience.
The market is clearly moving in this direction. The tools are better than ever. And the return on effort? Absolutely worth it.
