Revenues vs Profit: Where should our focus as Revenue Leaders truly be?

Matt Acker, Corporate Manager of Revenue Strategy at Concord Hospitality Enterprises, HSMAI Revenue Optimization Rising Leader Council Member 

In the hospitality industry, there is always a delicate balance that revenue leaders must maintain between top-line revenue and bottom-line profit. While it is important to maximize revenue, if this is done at the expense of profit margins, the hotel will not be sustainable in the long run. So, the question the HSMAI Revenue Optimization Rising Leader Council recently grappled with was: where should our focus as revenue leaders be? 

The answer, of course, is that it depends. Every hotel is different, and there is no one-size-fits-all answer to this question. However, here are some great ideas from our discussion.  

Key Takeaways:  

  1. Find the middle ground. It’s not necessarily one or the other, how can we maximize gross revenue without sacrificing the bottom line?  
  2. Make sure you understand operations, P&L, and financials to help guide decisions.  
  3. Influence profit through accurate occupancy forecasting – which leads to appropriate staffing levels.  
  4. Train customer service staff on guest recovery solutions that don’t give away the house.  
  5. Revenue manage the space for groups, which often is sold at a flat rate.  

Ultimately, don’t get stuck focusing solely on the rooms. It’s up to us as revenue leaders to branch out into other areas to impact both the top and bottom lines.  

Categories: Revenue Management
Insight Type: Articles