Revenue Management

📈 Revenue experts Aditya Patel and Adam Dwiggins from Lighthouse manage over 30 hotels, adapting strategies to shorter booking windows and heightened rate sensitivity. Flexibility is key: switching between ADR-focused and occupancy-first approaches, and using data to make proactive decisions. In 2023, hotels face geopolitical and economic uncertainties, necessitating dynamic pricing and distribution adjustments. Tools like Rate Insight aid in strategic pricing, while a strong group base stabilizes revenue. Lighthouse supports over 70,000 hotels globally with its platform.

📍 Millions of travelers use the 8+ rating filter on Booking.com when choosing hotels, eliminating options below this threshold. This behavior impacts hotel visibility, conversion rates, and revenue. Maintaining a high reputation score is crucial, as it directly correlates to guest satisfaction and financial performance. Hotels must prioritize guest experience since it serves as a significant revenue lever.

📈 Revenue managers often face "oh shit" moments when projections falter, rates are misjudged, or market conditions shift unexpectedly. Key scenarios include misplaced confidence in rates or missed spikes in demand. Successful managers maintain emotional control, avoid panic, and strategically analyze issues. Fabian Bartnick emphasizes that effective revenue management involves decision-making without certainty and adapting quickly to changes. Experienced managers recover swiftly from these moments, distinguishing them from average managers.

🏁 November 2025, São Paulo: The Brazilian Grand Prix spiked hotel metrics to record highs. Occupancy hit 74.3%, rising 3.4%. ADR soared to BRL 1,025.95 (+26.5%), topping BRL 1,000 for the first time. RevPAR increased by 30.8% to BRL 762.15. On November 7, ADR and RevPAR peaked at BRL 1,699.90 and BRL 1,573.32, respectively. Occupancy reached 93.6% on November 6. CoStar Group provided this data highlighting the significant market impact.

💸 In hotel management, setting the right cancellation policy balances revenue protection and guest satisfaction. Stricter policies improve revenue by reducing last-minute cancellations, while flexible ones boost bookings by enhancing guest confidence. Monitor competitors and adjust policies based on seasonality and demand. Long-stay bookings might require tailored policies with stricter terms. For example, offering free cancellations up to 48 hours before check-in can drive more volume, while non-refundable rates capture guest commitment.

💸 Revenue management requires adaptability through ten playbooks for distinct scenarios. A "revenue legend" excels by selecting the right strategy at the right time, focusing on key factors like rate mix, demand, and sales alignment. Key strategies include selling smarter, upselling, negotiating, and leveraging data for proactive management. The goal is to maximize profitability, not just occupancy, by making informed decisions and avoiding panic-driven actions. Legends succeed by preparing and choosing the right "look" for each situation.

📈 Nov 24, 2025: BCD Travel’s 2026 outlook highlights global hotel ADRs rising by 4.9%, outpacing airfare increases. While upscale and luxury hotels benefit from strong corporate and event demand, leisure demand softens, especially in the U.S., leading to only 2% ADR growth there. The Middle East and Latin America lead ADR growth with 8.2% and 6.4% increases. Europe, Africa, and Asia exhibit moderate growth, while North America and the Southwest Pacific lag with 2.2% and 2.6% growth.

🏨 Canada’s hotel industry in October 2025 reported significant growth: occupancy rose by 2.1% to 69.8%, ADR increased by 7.0% to CAD214.09, and RevPAR surged by 9.2% to CAD149.49. Newfoundland and Labrador led with an 11.9% rise in occupancy and a 19.0% increase in RevPAR. Nova Scotia’s ADR climbed 10.7%, while Toronto's ADR and RevPAR soared due to the 2025 World Series, marking a 14.8% and 17.3% growth, respectively.

📊 BCD Travel's 2026 Outlook reveals global economic growth may hit 2.6%, its weakest since 2009 (excluding 2020), with inflation over 3%. Airfares are expected to rise 1.1% globally, with Africa and Asia experiencing the highest increase. Hotel rates will grow 4.9% globally, highest in the Middle East at 8%. Car rental rates are set to rise 2-4%. Sustainability remains crucial, with only 9% of companies applying carbon fees and 15% investing in sustainable aviation fuel.