Finance

Brilliantly articulated. This is exactly where the conversation needs to be moving forward. The era of chasing topline numbers is over, today's commercial leaders are being judged by flow-through intelligence, not occupancy percentages.

We've been having these conversations for about 20 years now. A lot has been said and published on this topic, including my own articles, podcast episodes, webinars, and even dedicated chapters in my last two books. The answer, at least to me, is obvious: until RMS providers build true profit optimization capabilities into their products (which requires proper data flow for the missing pieces of the equation), we're not going to move forward.

The ambitious vision for Total Profit Optimization is not a destination we are equipped to reach today. It's not a pipedream, but a strategic challenge demanding a phased, constructive approach. The core issue is a structural disconnect stemming from the historical focus on Rooms: The Talent Evolution: We currently possess excellent Rooms Optimizers, whose skill sets were sharpened by focused toolsets and market dynamics.

The shift toward experience-based booking is absolutely transforming the game. AI can finally solve the paradox of choice. Hotels can now showcase everything they offer but in a way that's targeted and relevant. Don't sell me a romantic getaway when I'm traveling alone.

There is a massive industry gap here. Full stop. Discussion about this capability in the industry is topical. Those in a position to enable it are few, if even thinking about it. Packages are a clumsy solution to the underlying problem of being able to successfully deliver rooms digitally.

If the game has shifted...so must our KPIs. Today's revenue leaders must zoom out and focus on TRevPAR, capturing not just what happens in the room, but around it. Whether you're luxury or budget, you can take advantage of experiential revenue, something that thanks to digitalization, every hotel can play (and not only ultra-luxury resorts).