A rat race for short-term profits
When hotels started implementing revenue management, the business shifted from hospitality to asset management. Revenue managers have no relationship with hotel guests other than how much they can charge them and how to optimize occupancy and average rate. Revenue managers have become asset managers and work for hotel owners to maximize the return on every square foot/meter in the property. Many owners want to see the quarterly profits increase to produce a higher return on investment. This is the rat race for short-term profits. It is a never-ending story; a short-term perspective will always be suboptimal and never maximize long-term profits. Could there be another and more successful way of maximizing the return on investment on a hotel property?