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.
