Optimise Your Hotel Revenue Management Strategy

With over thousands of individually created strategies, we will help you define and execute your optimal revenue management pricing strategy.

Modern-day revenue management has evolved so drastically that it requires proper expertise and experience to manage all aspects profitably and to the full potential.

Every month and every day of the week have their own dynamics that have to be taken into account, and in combination with the occupancy and the pick-up, it is then decided whether you should outperform, undercut or keep up with the competition. Having a successful revenue management strategy is now more complex than it ever has been before.

Solely checking your competitor set once or twice a day and in reaction, increasing or decreasing your room rates is no longer justifiable.

Rainer M. Willa HotelPartner CEO

Your Successful Revenue Management Strategy Should Include:

  • Upgrade Rules
  • Differentiated dynamics for each individual room category
  • Direct Booking Benefits
  • Deals
  • Seasonal Dynamics
  • A Distribution Strategy
  • Automation
  • and much more

Have you reviewed your strategy lately?

Tactical vs. Strategic Revenue Management

How to differ the two hotel revenue management strategies from each other:

Strategic Revenue Management

Strategic revenue management is your overall hotel revenue strategy that is long-term focused and evolves around a clear road map to reach specific goals you have set for your hotel. The strategy in this case, outlines how you will reach each specific goals that you set for your hotel.


  • Establishing a shift of segmentation
  • Increasing your direct booking share
  • Entering or winning new markets
  • Increasing ancillary revenue.

Tactical Revenue Management

Tactical revenue management are concrete revenue management actions or steps you take to achieve each of your goals defined within your overall revenue management strategy. Without the proper revenue management tactics, you cannot achieve your long-term strategic revenue management goals.


  • Preforming a displacement analysis of existing booking channels
  • Exploring new channel alternatives
  • Commission optimizing your existing channels
  • Offering direct booking advantages / last-minute deals
  • Offering package deals (F&B / Wellness) to drive ancillary revenue
  • Market / Competitor Analysis


A Revenue Management Strategy Goes Beyond Room Pricing and Inventory Management

Avoid ill-defined strategies and implement the correct tactics.

Both proper tactical affinity as well as strategic and situationally adapted actions are required as the overall marketplace has become more dynamic and highly competitive. Managing all aspects is time consuming without the aid of technology and the proper handling requires a certain amount of expertise and controlling.

Technological aid and expertise that is usually limited within the independent hotel sector and can be costly to obtain or even maintain if your return of investment is non-existent should a revenue management strategy be ill-defined, or the wrong tactics are used to accomplish your long-term goals.

Frequently Seen Struggles In The Hotel Sector Include:

Time Allocation

Due to the seeming urgency of implementing tactics, many revenue managers spend most of their time on their tactical revenue management. This leaves minimal time to focus on the bigger picture of your hotel’s overall strategic revenue management goals and comes at the cost of stagnation, while not reaching predetermined goals.

Time limitations usually result from:

  • Lack of proper technology to supplement one’s employee
  • Lack of technological training to utilize a systems full potential
  • Manually working on tactical changes
  • Lack of experience or training to optimize processes in forehand

Market Dynamics

Understanding your guests and market dynamics is the key to successful revenue management. Though, to the already mentioned limitation of time or technology, many hotels struggle with maintaining a bird’s eye view of their market.

Without a clear market overview and understanding of guest behaviour, identifying demand patterns proofs to be more difficult as they have become more unpredictable and increasingly dependent on various factors. This hinders many hotels to fully react and implement proper tactical changes in time and leaves missed business opportunities or loss of business to the competition.

Lack of Data

Incorporating internal and external market data is important to broaden the view of your market dynamics as your hotel revenue management strategy strongly originates from this data.

Many independent hotels struggle in accumulating data from internal sources, while additionally struggle to find complementary data suppliers for their hotel or individual market.

This usually derives from an overwhelming amount of choice the marketplace has to offer and the sheer cost of potentially purchasing external data sets that cannot be utilized internally.

Not being able to utilize internal data sets is usually the result of data coming in through various systems. Having multiple systems that do not harmonize with one another can lead to data getting lost, while having a lack of overview functions or poor management skills leads to the same result.

Without the support of correct market data or securing only a limited amount of data sets (whether internal or external data), will result in not having a sufficient overview to define or redefine your revenue management strategy and an inability to enable tactical revenue management changes.


Whether on the side of tactical or strategic revenue management, the scope of traditional revenue management has broadened exceptionally over the past years through the advancement of technological changes.

New processes and approaches have emerged through technology and automation, while training, development and awareness of employees has stagnated mostly due to training costs or the fear of employee turnover.

Limited know-how and training leads to misguided actions, false internal guidance or the lack of innovative improvement. For example, when not being able to read data or knowing how to utilize data correctly in order to improve strategic goals.

Finding the Right Strategy

Usually connected to the lack of in-house know-how, many hotels are faced with the challenge of establishing their own revenue management strategy.

Often defined on personal presumption and feeling rather than on actual market dynamics, data or industry guidelines, ill-defined strategies result in unrealistic targets, unfulfilled goals and even negative guest perception if room pricing for example, is overvalued. A result of which can lead to negative guest reviews and/or lost business opportunities.


While revenue management systems have simplified certain revenue management processes, the job is not done by simply entering data into a system. Many hotels face the difficulty on what to automate and how to automate certain processes in an optimal way.

In addition to automation, not having unlimited flexibility with most revenue management systems proofs problematic for hotels when entering a preferred pricing strategy. Having such limitations results in unnecessary manual labour for the hotel to make certain tactical changes or results in a pricing strategy not functioning as desired. Many revenue management systems are also based on a market algorithm that does not allow for unique strategic implementations to foster individual hotel standing.

Commission optimization is another major challenge for most hotels. How to reduce commissions, when to close high commissioned channels or how to optimize commission cost in general or automatically through systematic implementations, is often knowledge unknown to most independent hotels.

Hotel channel management, in which commission optimization falls, is also usually done via a separate system or manually throughout various portals. Such handling leaves room to human error and possible booking discrepancies. Manually working on this is once again time consuming and leaves employees to not being able to focus other important revenue management tasks.

Having Difficulties With Your Revenue Management Strategy?

Sunborn Hotel London

HotelPartner is well versed in the latest IT technologies and supports us with it’s extensive expertise and professionalism.

Arun Kumar Former General Manager

Satisfied Customers & Long-term Partners

With over thousands of individual strategies built, over 475 hotels trust in the tactical and strategic revenue management of HotelPartner. Avoid short-term decisions that will harm your hotel and long-term strategy. Become part of the family and secure your competitive advantage now.

Your Revenue Management Strategy – Phase 1

The Initial First Steps to Securing Your Long-term Revenue Goals.

Through a partnership with HotelPartner, your revenue management strategy will be entirely based on a future focused approach rather than based on historical data. As such, your advantage as a hotelier will allow you to act on market dynamics in advance rather than react to market changes to optimize your profitability and revenue growth.

Before your revenue management strategy can be set, there are important initial elements that HotelPartner will evaluate and analyse on your behave, before ultimately defining your optimal revenue management strategy.

These elements include an analysis of your:

  • Hotel Location
  • Operational Processes
  • Current Pricing Strategy
  • Technology Level
  • Room Structure
  • Competition
  • Price Structure
  • Target Groups
  • Sales Structure
  • Brand Awareness
  • Online Presence
  • Benchmarking
  • Review Management

In correlation to your overall strategic goals and the defined cooperation agreement between you and HotelPartner, our experts will combine your past performance data (if available) to your current hotel standing and create a potential analysis on the optimization possibilities about each of the elements previously mentioned.

If you are planning to establish a new hotel, our experts will analyse your 3-year fiscal plan, your expectations and pricing strategy to the desired market location of that hotel. Any aspect that has an influence on the pricing strategy will also be evaluated and analysed if available.

Key Focuses Will Include:


  • What kind of product do I have?
  • What does my product offer?
  • How does it “feel”?

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Each hotel needs a clear category mirror. Not every room is a category, no matter how individual it is. Existing rooms have to be grouped into room categories or new categories need to be created. The categories are assigned price structures in consideration of the lower price limit.


  • Where am I positioned?
  • Who am I targeting?
  • Who is my competition?

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The market segments play a particularly central role: When is group business needed or when does a hotel become interesting to corporate customers? In which seasonal periods is there a utilization strategy involving lower rates, in which one does a higher rate strategy apply that may result in higher revenue with higher rates despite a lower utilization?


  • What product features add value?
  • How do I differ to my competition?
  • What unique offers can I create?

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In addition to a clear classification of guest groups and buyer personas into market segments, the unique hotel specifications (USP´s) play an important role. Even more detailed are the restrictions, which are further refined by the revenue management, such as the length of the stay or particular arrival dates.

Your Revenue Management Strategy Goals Secured – Phase 2

Automated Tactics to Optimize Your Revenue Growth and Profitability.

To develop your initial revenue management strategy, all the information about your hotel must be balanced out carefully. Once the strategy is complete, it is once again evaluated by multiple instances before being presented. Upon presentation, fine tunings can take place depending on your feedback and the agreed upon strategy will then be implemented into our revenue management system by the portfolio management and implementation team.

As the revenue management system of HotelPartner is completely rule-based, your individual revenue management strategy will be 100 % automated and complimented by the controlling of our industry experts.

Several times a day, adaptive tactical decisions can be made for your hotel that consider the entire market development from a bird’s eye perspective. Your portfolio manager, together with several instances of upper management controlling, look over your hotel’s performance daily to see if your revenue management strategy is on track, while constantly fine tuning any necessary changes.

Our experts also constantly prepare future strategies for a variety of potential market developments to secure no opportunities are missed depending on the market, while ensuring your hotel is secure from any potential market downturns. As your revenue management strategy with HotelPartner is completely future based, such predictive controlling measures are done up to 365 days in advance, leaving no room for surprises.

Cocoon Hotels

HotelPartner’s unique approach to revenue management has given us an increase in revenue of more than 50% from 2016 to 2019. This was significantly more than what the market has achieved.

Matthias Knappe Revenue Manager

Strategic Fine-Tuning & Adaptation – Phase 3

Secure Your Hotel from Possible Future Downturns.

HotelPartner`s industry knowledge of booking behaviour and patterns seen across 170 markets, allows for best practices in both tactical and strategic revenue management for your hotel. Over the course of our partnership, strategic or tactical changes to your pricing strategy will occur. Such changes are situational and dependent on several factors, such as market pressure, events, weather, crisis situations, or even internal changes such as a renovation.

Based on the collected data throughout the partnership mixed with the industry know-how and expertise of HotelPartner, changes to your pricing strategy are constantly optimized and automated without you having to invest your own resources.

Each major change or implementation is communicated accordingly and upon agreement, the execution will be done on behalf – allowing you to fully concentrate on other projects, while knowing your strategy is always in line with your overall goal.

Strategies have to be constantly refined! Booking patterns and particularly the demand options play a large role in the definition of whether one is moving in a dynamic or a fairly non-dynamic market.

Robin Czullay Chief Portfolio Manager Europe

Optimize your sales channels and revenue segmentation through the strategic expertise of HotelPartner.  

Revenue Management Guide

Request your exclusive HotelPartner Revenue Management Guide and find out more about the latest insights of our industry experts!