Hospitality Technology recently published an article from Otelier Hospitality Data Evangelist Jason Freed on the shift in hotel commercial strategy from focusing on driving revenue to prioritizing profitability.
In the article, Freed says the shift is due to rising operating costs, flatlining demand, and increased pricing pressure. As such, hotels are now adopting a profit-centric approach, which involves three key strategies: incentivizing profit over revenue, optimizing labor costs, and broadening revenue management to all areas of the hotel.
A focus on Total Profit Optimization encourages hotels to analyze and optimize all revenue-generating channels to maximize profitability. This shift requires a cross-disciplinary approach powered by accurate data and personalized insights across departments to make strategic decisions that enhance the bottom line.
Read the full article here.Â
