Beyond ADR: how a holistic revenue management view multiplies profitability
Revenue management has evolved beyond simply optimising
rates and occupancy. In a highly competitive hotel environment, where every
decision directly impacts profitability, it’s essential to adopt a holistic
approach that considers all factors influencing financial performance. This
means going beyond ADR and analysing the impact of each customer segment,
distribution channel, and ancillary service.
As we explain in the article “Enough
with the hype, let’s get to action: real AI for real revenue management”,
AI applied to revenue enables real-time analysis of the net contribution of
each demand source and supports informed decisions on pricing, distribution,
and channel optimisation.
Beyond cost per channel: segmentation and spend
contribution
Optimising channel mix is not just about reducing
distribution costs, but understanding the total value of each guest. Different
customer segments display varied consumption patterns, allowing for tailored
pricing and operational strategies to maximise profitability. A deep analysis
of each segment’s net contribution uncovers opportunities that go beyond
immediate booking costs.
Some key factors to evaluate include average length of stay,
F&B or spa spend, and price sensitivity by origin market. Automation
enables dynamic strategy adjustments based on real performance of each segment,
maximising revenues even on higher-cost acquisition channels.
In “Barceló
Hotel Group and BEONx: a partnership to transform and digitalise revenue
management”, we detail how analysing this data enables more
market-aligned decisions, optimising both direct profitability and operational
efficiency.
Revenue management in F&B and wellness: optimisation
strategies
Applying revenue management principles beyond rooms is key
to boosting overall hotel performance. In departments like F&B and
wellness, implementing dynamic pricing and demand segmentation strategies can
drive significant revenue increases.
In F&B, this includes dynamic rate management based on
demand peaks, pricing optimisation by meal plan, customer segmentation, and
special offers to raise average spend.
Spas use similar strategies, like variable pricing by time or season, bundled
packages with rooms and services, and efficient appointment management to
minimise idle time. Additionally, AI and data analysis help predict trends and
adapt strategies in real time, ensuring a balance between occupancy, guest
experience and profitability.
A culture of experimentation in revenue management
Data-driven optimisation methodologies support informed decision-making and
continuous improvement of commercial strategy. Testing pricing, upselling, and
segmentation strategies through controlled experiments can enhance both
profitability and guest experience.
This experimentation mindset is part of a culture of
continuous improvement, where each data point becomes a chance to learn, adjust
and evolve. As we always highlight at BEONx, modern revenue
management is an operational philosophy that impacts all hotel areas.
Examples like Hotel
Claridge show how adjusting pricing, schedules and experiences
based on occupancy and guest profiles helps optimise total revenue without
compromising service quality.
Modern revenue management is no longer about pricing alone;
it’s a holistic strategy influencing every aspect of hotel operations. From
advanced segmentation to maximising income across all business units, every
decision should be data-based and part of a proactive optimisation approach.
Curious about how AI can transform your hotel’s
profitability?
At BEONx, we show you how our clients are already automating
decisions, optimising revenue and personalising strategies with real data.
Book a personalised demo and find your
X with BEONx.
