Holistic management determines revenue success and directly related acquisition costs
The days when the Revenue Manager was solely responsible for optimal pricing and room occupancy are over. In an increasingly complex hospitality landscape with growing competitive pressure, new revenue-generating opportunities, and evolving guest expectations, it is no longer enough to focus solely on room sales. Instead, the revenue strategy must encompass all income areas and revenue sources of the hotel – from gastronomy to conferences to additional services.
This is where the Performance Manager comes into play, overseeing and optimizing all revenue-generating areas from a single source.
Why a shift is necessary:
- A holistic view of hotel revenue: While the traditional Revenue Manager primarily focuses on optimizing the sale of hotel rooms or vacation rentals, the Performance Manager considers all relevant revenue sources. These include room revenue, F&B revenue, spa and wellness services, conferences, events, and even external partnerships.
- Better synergies between departments: The integration of sales, marketing (e-commerce), reservations, and operational departments ensures more efficient management. A Performance Manager coordinates the different areas and ensures they do not operate in isolation.
- Optimization of overall profitability: The goal is not only to maximize RevPAR (Revenue per Available Room) but also to increase overall profitability (GOP – Gross Operating Profit or Gross Operating Profit per Available Room). Targeted management of additional sales and distribution channels, along with associated sales costs (Cost of Sale factor), can significantly increase guest profitability.
Which areas should be managed from a single source:
Room Pricing & Occupancy
o Dynamic price adjustments based on demand, market data, and historical trends
o Management of direct bookings and distribution channels
o Optimization of booking channels and OTA strategies
o Efficient use of modern revenue management software
Gastronomy & Additional Sales
o Cross-selling strategies for hotel guests (e.g., breakfast, half board, room service)
o Generating as many gastronomic sales as possible during room booking
o Optimized menu pricing based on guest data and demand analysis
o Managing promotions and packages to increase revenue
o Distribution management of available tables for à la carte dining, supported by modern table reservation software
MICE (Meetings, Incentives, Conferences, Events)
o Dynamic pricing for event spaces and conference packages
o Offering attractive conference packages
o Bundling event services with catering and accommodation
o Expanding sales partnerships in the MICE market (e.g., MICE OTAs, wedding portals, etc.)
o Monitoring conversion rates in order management and, where possible, consolidating inquiries from all revenue sources and sales channels
Wellness & Leisure Services
o Package or modular offers for spa and leisure activities
o Monitoring demand by day and hour and actively directing guests to low-demand periods
o Selecting high-margin products during peak demand times
o Upselling opportunities during guest stays
o Digital booking options to maximize capacity utilization
Loyalty & Direct Booking Strategies
o Measuring guest loyalty
o Guest retention through customized offers
o Optimization of the hotel website and direct sales channels
Pricing Strategy Responsibility Across All Areas
o Unified pricing strategy for all relevant hotel sectors
o Dynamic price adjustments based on market trends and demand
o Consideration of competitor data for optimal pricing without overestimating competition
Distribution
o Simplification of the booking process across all viable distribution channels
o Utilization of new digital sales opportunities
o Optimization of interfaces between sales and reservations
o Reduction of labor-intensive manual contingent-based business
Performance of the Website and All Integrated Shops (Room Booking, Table Reservations, MICE and Group Booking Engine, Voucher Shop, Event Tickets, etc.)
o Improving loading speed and user-friendliness
o Strengthening direct bookings via the hotel’s own website
o Monitoring conversion rates
o Analyzing and optimizing booking behavior
SEO and SEM (Search Engine Optimization & Search Engine Marketing)
o Search engine optimization for better visibility
o Targeted search engine and social web advertising to increase revenue
o Continuous analysis and adjustment of the digital marketing strategy
The traditional Revenue Manager must evolve into a Performance Manager to meet the growing demands of the hospitality industry. A holistic management approach to all revenue sources not only leads to higher earnings but also strengthens the hotel’s competitiveness. Successful hotels recognize the necessity of this shift and invest in professionals who can think and act across disciplines.
The key to success lies in the intelligent integration of data, systems, and strategies – ensuring not just full beds but also the optimal utilization of all revenue potential. The Performance Manager is increasingly supported by AI-based software. Chatbots assist in quickly responding to guest inquiries, while automated offer generation relieves the reservations team and provides guests and bookers with fast, customized offers that improve conversion rates. POS systems with digital menus and integrated table reservation systems enable better demand forecasting in the gastronomy sector.
