The Future of Revenue Management - Moving Beyond Room Rates
The hospitality industry has long been fixated on room rates as the primary driver of revenue. But Thomas Landen, CMO at RoomPriceGenie, believes it's time to rethink revenue management as part of a broader commercial strategy. Speaking at ITB Berlin, Landen challenged the traditional, siloed approach and emphasized the need for hotels to integrate pricing with marketing, upsells, and dynamic asset utilization.
Key takeaways
- Revenue management isn't just about rooms. Hoteliers must think holistically—parking, F&B, experiences, and other services should be dynamically priced and optimized.
- Technology is evolving, but fundamentals remain key. AI and automation will handle most pricing decisions, but without context and strategy, automation can amplify mistakes.
- By 2050, the revenue manager's role will be unrecognizable. Instead of setting rates manually, revenue leaders will focus on big-picture orchestration—aligning pricing, advertising, and demand generation to maximize total profitability.
Landen also challenges the industry's obsession with “ancillary revenue,” arguing that all revenue should be considered part of the overall commercial strategy. In the future, the most successful hotels will be those that break down internal silos, unify their revenue approach, and leverage AI to make data-driven decisions in real-time.