by Diogo Canteras - Founding Partner, HotelInvest

Revenue management is a strategy implemented with the aim of maximizing the revenue of accommodation establishments. Fluctuating rates in line with demand, combined with well-adjusted segmentation, can significantly increase a hotel's revenue.

More recently, the discussion on the subject has turned to how this management can improve hotels' financial results. In this context, the analysis of indicators such as average net daily rate, net RevPAR and distribution channel costs has been crucial to achieving better results. 

In heated markets with a stable hotel supply, appropriate pricing focused on increasing room nights has a direct impact on business profitability. In addition, these markets allow for more efficient and sophisticated management of distribution channels, reducing the cost of customer acquisition. 

A practical example occurred in March 2023 in the city of São Paulo. The staging of six concerts by the band Coldplay, among other attractions, boosted hotel occupancy on weekends, which usually have lower demand. According to FOHB, the city saw a 25% increase in occupancy and a 63% increase in the average daily rate in March 2023, compared to March 2022. Hotels that adjusted their prices and distribution strategies to take advantage of the high demand achieved significant financial outcomes. HotelInvest's Asset Management portfolio, for example, distributed 178% higher results in this comparison. It just comes to show how good revenue management can significantly boost a hotel's financial performance.

With the advance of technologies and artificial intelligence, Revenue Management has been transformed. AI tools make it possible to automate demand forecasts, personalize offers and optimize revenues. Hotels that adopt these innovations will be better placed to maximize their financial results and remain competitive in the market.