top of page
  • Team ProMiller

The Future of Hotel Revenue Management

Updated: Mar 17, 2023

What do you do when you want to increase profits from your hotel business? Any solution that one can think of falls into two major categories: 'Decrease the Expenses' and 'Increase the Revenue'.

As typically found by many hotel asset management companies in India, the latter is less focused upon, in comparison to the first solution. Hotel businesses tend to cut back on expenses in order to maintain (or increase) their profits. Now the question arises: 'Which one of the two is better?' Well, we believe a balance of both is vital for a steady and sustainable solution.

Hotel Revenue Management Companies In India, Hotel Revenue Management, Revenue Management, ProMiller Revenue Management

When hotel owners, investors or other stakeholders look at a dysfunctional strategy, hotel revenue management is bound to be brought on the table. Evidently, hotel revenue management teams are mostly found to be the center of business, meaning that other departments are affected by them. Despite this,' Total Hotel Revenue Management' is due to claim its fame in the industry albeit being one of the crucial change-makers when it comes to profit-making strategies. Somehow, even the best hotel management companies in India are yet to give the dedicated focus to hotel revenue management that it deserves.

The strategic changes in hotel revenue management (RM) have come more slowly than expected over last years, claims a study by Sheryl E. Kimes from Cornell University . The study, based on a survey of 400 revenue management professionals, includes but not limits the biggest challenges to RM in Hotels as: Economic Challenges, Online Travel Agents (OTAs), Competition, Owner's Pressure.

The study suggested that, going forward, (THRM) total hotel revenue management practices will be more fully integrated into all hotel operations, including function space (although these ideas have yet to gain much traction in the industry). It is evident that in order to be future-ready, hotel management companies in India need to adopt hotel revenue management to a larger extent. Dilution of tariff at unreasonable rates can be seen as a common challenge for hotels and it heavily affects a micro market and hence is often discouraged by good hospitality asset management companies.

Evidently, decreasing room tariffs below a certain standard might look like a win but it actually is a loss in long-term- unfortunately, not all hospitality management consultants reach this conclusion. Active revenue management strategies aim for a long-term and sustainable solution rather than short-term wins- which eventually leave the hotel property dried up. It then becomes a common problem that many hotel asset management companies in India need to deal with.

To get advised on hotel revenue management or any other concern related to your hotel property, write to us at Explore more blogs at

212 views1 comment




bottom of page