The Elimination Strategy: Which Hotel Services, Segments and Channels Should You Drop?
In hospitality, growth does not always mean adding more services or targeting more segments. Often, the real competitive advantage comes from removing what no longer creates value.
This article presents a strategic framework for deciding which services, guest segments or distribution channels a hotel should discontinue without harming its brand or profitability—helping simplify operations, strengthen positioning and improve the guest experience.
There is a deeply rooted idea in Hospitality that we rarely question: growth means adding things. More services, more segments, more sales channels, more packages, more promotions. For years, many hotels have interpreted growth as the constant accumulation of initiatives.
However, over time, one discovers an uncomfortable truth: complexity rarely creates a competitive advantage. In fact, it often destroys it. I have seen hotels with an outstanding value proposition lose clarity because they tried to be too many things at once. Restaurants open to every audience, diluting the guest experience. Packages that nobody buys. Distribution channels that generate volume but no profit.
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