Lead Hospitality

Misunderstood Revenue Management Is Undermining Hotel Positioning

THE IDEA

Too many hotels are sacrificing their positioning in the name of misunderstood revenue management. We have confused filling rooms with building value, and many properties now compete like commodities in a digital marketplace. Permanent discounts, inconsistent rates and price wars that erode brand equity are not strategy; they are fear disguised as management. If price is your only competitive advantage, you have already lost. True hotel revenue management is not about selling cheaper—it is about selling with judgement.

Some words carry weight. And the one I want to use today is not a comfortable one: prostituting.

I use it deliberately, because all too often we are handing over the positioning of our hotels to the highest bidder, the latest click, the channel that applies the most pressure. And we do so under an apparently noble banner: hotel revenue management.

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