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The International Luxury Hotel Association Features Insights to Hotel Profit Trends by Otelier

Editor’s note: After expanding to include a suite of data solutions for hotel owners and operators, MDO (myDigitalOffice) rebranded to become Otelier in February 2024. Please excuse any brand inconsistencies in the content below.

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The International Luxury Hotel Association features key insights behind the hotel industry’s shift from revenue to profit strategies by Jason Freed of Otelier. 

More widely available metrics like Gross Operating Profit (GOP) offer a more comprehensive view of a property’s financial health and sustainability in the long run.

The hotel industry has seen an evolving narrative when it comes to business optimization. And lately, there’s been a paradigm shift from purely focusing on revenue to a more holistic approach on profitability. Modern hoteliers are shifting their focus from top-line revenue to true profit optimization.

That means not just zeroing in on profit margins but considering all revenue-generating areas, including ancillary outlets. Hoteliers who practice total profit optimization have the ability to evaluate every outlet’s performance to discover the most profit-driven strategies.

The shift toward total profit optimization indicates a broadened perspective that goes beyond merely focusing on profit margins. Total profit optimization isn’t just about looking at the rooms. It’s about recognizing all potential revenue-generating areas within a hotel’s ecosystem. This includes not only the mainstays like rooms but also ancillary outlets, such as spas, restaurants, event spaces, and more. By considering all these sources, hoteliers are casting a wider net to capture every possible opportunity to enhance profitability.

Read the full article on The International Luxury Hotel Association to learn why hoteliers shifted focus from revenue to profits in 2023.


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