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Teamwork is essential to capturing more revenue per guest

12 May 2022
The basic theory of the marketing mix with the 4 Ps works perfectly for hotels. However, the idea was never to split up the 4 Ps and work independently in silos. Instead, the power lies in aligning all the 4 Ps to attract the right guests. A team with substantial knowledge of each of the 4 Ps does this best.

Use all four parts of the marketing mix

Traditionally, hotel revenue managers believe that the rate is the deciding factor for guests when selecting a hotel. Hotels should not forget the most straightforward marketing mix formula, the 4Ps, and adjust all the levers to capture more revenue. Let's look at each of them to find opportunities to increase revenue.


Which traveler/consumer is the hotel trying to catch? How do the rooms, other products, and services appeal to the potential guest? How does the offering stand out from offerings from other hotels?


The base rate must always relate to the natural and perceived value of the room, product, or service. How hotels price rooms, products, and services depend on the competitors, demand, and consumers' willingness to spend.


When hotels make decisions regarding place, they try to determine where they should sell rooms, products, and services. So how can hotels get their rooms in front of the consumers that are most likely to buy them? Hotel salespeople can contract customers to commit to future room nights. Hotels dream of selling more directly to consumers to attract guests, but hotels depend on third-party distribution channels.


Promotion includes advertising, public relations, and promotional strategy. For example, promoting a hotel aims to create awareness and show consumers the benefits of staying in it instead of staying in another hotel and why they should pay a specific rate.
By carefully integrating these marketing strategies into a marketing mix, hotels can ensure they have a visible, in-demand room, product, or service that is competitively priced and promoted to their targeted audience. In total revenue management, it is even more important to use all four components in the marketing mix to maximize the revenue per guest.