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The CEO's Guide to Guest-Centric Revenue Management

02 November 2023
In an era where the guests' needs and requirements are evolving, hotel CEOs are called upon to pivot from traditional revenue management tactics to a more nuanced guest-centric approach. The key to sustained profitability is an intimate understanding of the guest experience and its direct influence on financial outcomes. Central to this evolution is a shift in revenue management focus—from mere capacity to customer-first strategies.
A hotel's online reputation has become its most valuable asset in the digital sphere. Each review and rating weaves into the broader story of the brand, compelling potential guests toward or away from a booking decision. Beyond attracting guests, an excellent online reputation directly impacts a hotel's pricing power. The better the reputation, the higher the premium a property can command. It's a simple equation: trust breeds loyalty, and loyalty drives profitability.

How to achieve the best reviews

Achieving high ratings, reviews, and scores from guests is predominantly a result of offering an exceptional guest experience. By starting with the reason for travel and then delving deeper into specific traveler segments, hotels can craft a guest journey that resonates deeply, enhancing satisfaction, loyalty, and profitability. This holistic approach ensures that the hotel's offerings are not just generic but are thoughtfully tailored to the needs and preferences of its guests. Let's start with the travel reasons.

Reason for Travel: The Cornerstone of Demand

The fundamental question is at the heart of understanding demand in the hospitality industry: Why do people travel to a particular destination? The reasons are varied and often interconnected, but they can generally be categorized into a few broad areas.
  1. Leisure: This encompasses vacations, sightseeing, relaxation, and general tourism. Leisure travelers might be drawn to a destination's attractions, natural beauty, or cultural experiences.
  2. Business: Business travelers visit a destination for work-related reasons. This can range from attending conferences and meetings to longer-term project work.
  3. Events: Whether it's a major sports event, a music festival, a convention, or a local cultural festivity, events can be significant travel drivers.
  4. Personal: This can include visiting family or friends, medical reasons, or even personal milestones like weddings or reunions.
  5. Transit: Some travelers might be in a destination for a short period, perhaps as a layover between flights or as a stopover during a longer journey.

Weekday vs. Weekend Dynamics

For many destinations, the reason for travel can fluctuate significantly between weekdays and weekends. For instance, business travel might peak during the weekdays when conferences, meetings, and corporate events are in full swing. Conversely, weekends might surge in leisure travelers or those visiting for personal reasons. Understanding the destination's dynamic is crucial for hotels as it affects occupancy rates, room pricing, and the types of services in demand.

Refining guest segments

Once a hotel understands why people travel to its location, strategic decision-making is next. Focusing on every kind of traveler might spread a hotel's resources thin, potentially leading to a diluted guest experience. Instead, by pinpointing specific segments that align with the hotel's brand, facilities, and strengths, a hotel can offer a more tailored and memorable experience. Here are a few variables to help hotels find the perfect guests.
  1. Psychographics: Travelers will have varying values and interests within each travel reason. For instance, two tourists might visit for sightseeing, but one might be a history enthusiast while the other is interested in photography. Larger destinations offer more opportunities for hotels to specialize due to increased traveler volume.
  2. Demographics: Age, family status, and nationality can further segment travelers. A young solo traveler visiting for adventure might have different preferences than a family traveling for the same reason. Again, hotels need to focus on specific target groups. The more specific, the better.
  3. Spending Habits: Even within a segment, spending habits can vary. Some might look for luxury experiences, while others seek value for money. Match what the hotel offers with an audience with the proper spending power.
  4. Other Variables: Travel frequency, duration of stay, and past travel experiences can also influence preferences and expectations. Generally, giving guests a great first impression is easier, and sustaining that impression during a more extended stay is a bit harder. Is the breakfast as fantastic on the third, fourth, or fifth day as on the first?

Designing the guest experience for the target audience

A guest's journey is a tapestry of interactions, each stage an opportunity to exceed expectations. From a seamless pre-booking experience to a personalized post-stay follow-up, every touchpoint is an opportunity to impress and secure loyalty. Remember to design the guest journey from the target audience's perspective. Otherwise, the guest journey will be too generic and the same bland guest journey guests can find at any hotel. Here's a detailed list of ideas and actions in a 7-step guest journey that can be taken at each stage of the guest journey to enhance value and satisfaction:

1. Pre-Booking / Research Phase

  • Informative Website: Ensure the hotel website is user-friendly, mobile-optimized, and provides comprehensive information about facilities, services, and local attractions.
  • Interactive Features: Implement chatbots for instant queries, virtual tours, or AR experiences to provide a sneak peek of the hotel.
  • Easy Booking Process: Simplify the booking process with clear rate descriptions, multiple payment options, and transparent cancellation policies.

2. Booking / Reservation Phase

  • Personalized Offers: Use data analytics to provide tailored packages or deals based on guest preferences or previous stays.
  • Clear Communication: Send confirmation emails with all the necessary details and offer assistance for any special requests or needs.
  • Loyalty Programs: Introduce or promote loyalty programs with tangible benefits for returning guests.

3. Pre-Arrival

  • Engaging Updates: Send guests information about upcoming events, weather forecasts, or any special activities planned during their stay.
  • Enhance the experience: Upsell the booked hotel room, offer specials for food & beverage, and other facilities in the hotel. All offers should be customized or at least targeted to the selected segments.
  • Transport Assistance: Offer assistance with airport transfers or directions to the hotel.
  • Early Check-in Options: Provide early check-in or luggage drop-off options.

4. Arrival / Check-in

  • Warm Welcome: Train the front desk staff to greet guests warmly, ensuring a smooth and swift check-in process.
  • Welcome Kits: Offer a welcome drink, local snacks, or a small gift as a gesture of appreciation.
  • Hotel Tour: If feasible, offer a quick tour highlighting facilities and services. Offer to reserve tables in the restaurants, spa treatments, and other facilities in the hotel.

5. Stay

  • Impeccable Room Standards: Ensure rooms are clean, well-maintained, and equipped with all promised amenities.
  • Guest Services: Offer 24/7 concierge services, room service, and other guest support services.
  • Personalized Touches: Leave handwritten notes, provide custom recommendations for local attractions, or offer surprise room upgrades.
  • Engaging Activities: Organize events, workshops, or activities that guests can participate in, promoting local culture or unique hotel offerings.
  • Feedback Loop: Implement systems to collect and act on feedback during the stay, resolving any issues promptly.

6. Check-out / Departure

  • Smooth Process: Ensure a hassle-free check-out process, offering options for electronic bills or express check-out.
  • Farewell Gesture: Provide a small parting gift or token, thanking guests for their stay.
  • Feedback Encouragement: Politely encourage guests to leave reviews or ratings, explaining how it helps the hotel.

7. Post-Stay

  • Thank You Notes: Send personalized emails or postcards thanking guests for their stay.
  • Engagement: Share newsletters, updates, or special offers to keep the hotel top-of-mind.
  • Feedback Analysis: Analyze reviews and feedback to continuously improve services and address recurring issues.
By focusing on these and other ideas and actions at each stage of the guest journey, hotels can enhance the overall guest experience, leading to higher satisfaction, positive reviews, and increased loyalty. Remember, every touchpoint is an opportunity to exceed expectations and create lasting impressions.

Crafting Tailored Offerings

The alchemy of transforming a stay into an unforgettable experience begins with personalized offerings that speak directly to the heart of the guest's desires and expectations. By dissecting the guest journey through the lens of each identified segment, hotels can craft a suite of offerings that meet and anticipate each traveler's unique needs. Here’s how a nuanced understanding of your audience can be translated into compelling, customized experiences:

Personalize Marketing

To capture the attention of your segmented audience, marketing efforts must be as precise as a surgeon’s scalpel. Employ data analytics to understand the behaviors and preferences of each segment and tailor your messaging to resonate with them.
  • Storytelling in Campaigns: Develop narratives that showcase experiences uniquely available at your hotel—whether it’s the tranquility of a spa retreat for the weary business traveler or the exhilaration of a local adventure package for the thrill-seeking tourist.
  • Channel Selection: Choose marketing channels based on where your target segments are most active. For example, use professional networks for business travelers and social media platforms like Instagram for younger leisure travelers.

Design Packages

Curated packages are the cornerstone of personalized service, offering guests a room and a tapestry of experiences and services that amplify their reason for travel.
  • Experience-led Bundling: For instance, a ‘Romance by the Sunset’ package for couples might include a sunset cruise, a couple’s massage, and a private dinner under the stars, thereby creating a compelling narrative for the stay.
  • Flexible Customization: Offer guests the ability to tweak packages to their liking. This could be as simple as choosing a wine preference for the room or as elaborate as customizing day tours.

Enhance Services

Every guest seeks a frictionless experience that caters to their needs. By enhancing your services to address the specificities of each segment, you elevate the guest's stay from satisfactory to remarkable.
  • Tech-enhanced Convenience: For the tech-savvy traveler, integrate smart room features that allow customization of their environment or provide a digital concierge accessible via a smartphone app.
  • Cultural Immersion: For those drawn to cultural experiences, offer guided tours, language classes, or cooking sessions with local chefs, deepening their engagement with the destination.
By weaving together these personalized marketing efforts, thoughtfully designed packages, and enhanced services, hotels can create a compelling proposition that appeals to each segment. This strategy elevates the guest experience and builds a foundation for loyalty, advocacy, and, ultimately, a robust bottom line.

The CEO's Perspective on Long-Term Profitability

Now, the hotel has refined the target audience, designed the guest journey based on the needs and requirements, and crafted attractive offerings that will appeal to the target audience. Do you think this will work? The CEO can take several key actions to foster an environment where the guest-centric model can flourish. Here are a few examples.
  1. Measure and Monitor: Implement a system to track and analyze key performance indicators (KPIs) related to guest satisfaction and lifetime value. Monitor metrics such as repeat booking rates, referral rates, and average spend per guest. Use these insights to refine offerings and address any service gaps.
  2. Empower through Technology: Invest in technology platforms that aggregate and analyze customer data to personalize guest experiences. Ensure these systems are integrated across various touchpoints for a seamless data flow and guest interaction.
  3. Cultivate a Culture of Excellence: Drive a guest-first culture throughout the organization. Encourage staff at all levels to contribute ideas for enhancing the guest experience and recognize those who go above and beyond to delight guests.
  4. Consistent Brand Experience: Make sure that all offerings, whether services or packages, align with the hotel's brand image and promise. Consistency is critical to building trust and reliability with guests.
  5. Responsive to Feedback: Establish a robust feedback mechanism where guest reviews and suggestions are taken seriously and acted upon promptly. This responsiveness improves the service and demonstrates to guests that their opinions are valued.
  6. Employee Training and Development: Continuously train employees to deliver exceptional service. They should be well-versed in the hotel’s PMS, understand the nuances of guest personalization, and be empowered to make decisions that enhance the guest experience.
  7. Cross-Departmental Collaboration: Foster strong communication and collaboration between departments to ensure the guest experience is cohesive. Revenue management, marketing, operations, and other departments should work together toward common guest-centric goals.
  8. Innovation and Adaptability: Regularly introduce innovative services and adjust the existing offerings based on guest feedback and shifts in the target audience's preferences.
  9. Strategic Partnerships: Form alliances with local businesses and services to enhance the guest experience and offer guests something beyond the conventional hotel stay.
By focusing on these areas, the CEO can ensure that the hotel’s approach to revenue management is not just about optimizing rates and occupancy but creating a guest-centric ecosystem that drives loyalty and long-term profitability. This strategy puts guests at the heart of the business, believing that a delighted guest is the most valuable asset in the hospitality industry.


In summary, revenue management for a successful hotel CEO goes beyond focusing on numbers and occupancy rates. Instead, It is an art that blends analytics with empathy with every decision to enhance the guest experience. This approach emphasizes creating emotional connections with guests, moving from transactional interactions to a more relational mindset.
Placing guests at the heart of all operations is essential for a successful hotel business. This approach focuses on the customer, recognizing that they are the most significant element of any hotel. The goal is to turn service encounters into emotional connections, fostering a sense of belonging and a connection with the hotel's brand. By doing so, hotels are not just selling rooms; they are selling stories.
A hotel that prioritizes guest experiences creates the foundation for long-term relationships. Guests become ambassadors, their reviews become endorsements, and their loyalty becomes a competitive advantage. The CEO is responsible for nurturing and sustaining this cycle of satisfaction and profitability. The CEO should be the chief architect of experiences and custodian of guest satisfaction and be a visionary leader who aligns every department towards a singular mission - to delight every guest.