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Evolving from managing revenue to maximizing profit How do you measure it?

For as long as most hoteliers can remember, RevPAR has widely been accepted as the most critical hotel performance KPI. Taking both occupancy and average rate into consideration, RevPAR indicates how successful the hotel has been filling its perishable inventory AND the overall caliber of business that it was able to fill it with. Back then, more RevPAR simply meant more profit.

Should hotels look to diversify their income streams now?

Expedia Group CEO Peter Kern believes that 2023 will be the year that we stop predicting a travel recovery and actually start enjoying it. In an interview with Bloomberg, he said further: Summer 2022 will be the busiest travel season ever.  But after two years of little to no demand, many hoteliers have started to look beyond traditional room revenue and warmed up to the opportunity which lies in non-room revenue. With a possible record summer ahead, will the idea of total revenue (and total revenue management) remain a focus for the industry or will we revert back to business as (pre-pandemic) usual? So the question is: Should hotels look to diversify their income streams and when is this the right time to do so? What should hoteliers be looking out for in the process and where is the opportunity?

Creative Revenue Management: How Can Hotels Sell their Spaces in Time of Crisis? – Hospitality Net World Panel

Creative Revenue Management: How Can Hotels Sell their Spaces in Time of Crisis? – Hospitality Net World Panel
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