The Elimination Strategy: Which Hotel Services, Segments and Channels Should You Drop?

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. Market pressure does not help either. When a hotel goes through periods of uncertainty, the natural reaction is often to add more: more promotions, more agreements with intermediaries, more guest types. Paradoxically, this reaction often increases dependence on tactical decisions and reduces the hotel’s strategic capacity. Over the years, I have reached a conclusion that may seem counterintuitive: many of the most profitable decisions in a hotel are not those that add things, but those that remove what no longer creates value. Letting go of certain services, segments or channels can free up resources, improve the guest experience and strengthen the hotel’s identity. The real challenge is not eliminating. The real challenge is knowing what to eliminate without harming the brand or profitability. Because giving something up always creates fear: fear of losing revenue, disappointing guests or making a strategic mistake. The good news is that there is a structured way to make these decisions. An approach that makes it possible to identify which elements need to disappear so that the hotel can focus on what truly creates value.

Why many hotels retain services, segments or channels that should no longer exist

One of the most common mistakes in hotel management and strategy is confusing activity with value. The fact that something exists within the hotel does not mean that it contributes to profitability or positioning.[cre_gate] In reality, many hotel operations carry forward decisions inherited over the years. Some common examples:

• Services created for a guest type that is no longer a priority.
• Segments that generate occupancy but reduce profit.
• Distribution channels that deliver volume at the expense of very low margins.
• Experiences or facilities that consume resources without strengthening the brand.

In practice, these decisions are usually maintained for three reasons.

1. Operational inertia

In many hotels, there is a sense that removing something is a sign of decline. Yet in strategy, the opposite is true: clarity often emerges when we eliminate what is unnecessary.

Every additional service entails: