Strategy & Mix Management
Volume Is Vanity. Net Revenue Is Sanity.
A busy hotel is not necessarily a profitable one. The revenue manager who only tracks occupancy and gross ADR is measuring the wrong things.
4 min read
Quality of business means evaluating each reservation — and each segment — not just on what it pays, but on what it costs to acquire, how likely it is to cancel, whether it displaces better business, and what it contributes to net revenue after distribution costs. A direct booking at €180 is worth more than an OTA booking at €200 after commission.
A corporate account with consistent production and low no-show rates is worth more than a transient segment that fills gaps but erodes rate integrity. Building a quality-of-business framework means defining net revenue metrics, tracking cost of acquisition by channel, and making displacement decisions based on net contribution rather than gross rate.