Is Your Hospitality Revenue Engine Fit for 2025?
For most of the last few decades, “revenue” in hotels and resorts really meant one thing: rooms. F&B, spa and everything else were nice-to-have, but the room business drove the model.
That world is disappearing.
In 2025 and beyond, the properties that win will be those that think in terms of a revenue engine, not a room business. That engine blends rooms, ancillaries, partnerships and data into a system that can keep growing – even when the macro environment, demand patterns or distribution landscape change.
From what I see across hotels, resorts and experience-led brands, there are a few common gaps.
1. Over-reliance on a single demand pool
Many properties are still overly dependent on one combination of market + channel:
A couple of big OTAs
One or two key source markets
A small set of corporate / DMC relationships
It works… until it doesn’t. A shift in OTA algorithms, geopolitical risk, or a new competitor can have an outsized impact on performance.
A healthy revenue engine deliberately balances:
Local residents
Regional travellers
International guests
Direct vs OTA vs other channels
and has a plan for what to do if any one leg weakens.
2. Non-room revenue that’s treated as an afterthought
Almost every property I’ve worked with has under-monetised assets:
Pools and beaches that sit empty in off-peak hours
Restaurants and bars that rely on “if we build it, they will come”
Spas that could easily support memberships or subscription models
Meeting spaces that are either over-sold or ignored
Treating these as “nice extras” is a missed opportunity. When you design daycation products, memberships, passes and experiences with intent, non-room revenue can be the margin that keeps the business healthy.
3. Data you have but don’t really use
Most hotels are sitting on an enormous amount of data:
PMS, POS and booking data
Website, media and campaign data
Feedback, reviews and CRM information
But very few are using it to answer simple, high-value questions:
Which segments are actually most profitable?
Which offers and channels drive guests who return?
Where are we overspending on acquisition relative to value?
You don’t need a team of data scientists to start. You need a clean KPI set, a simple dashboard and a routine for looking at them.
4. Commercial ownership that’s spread too thin
Revenue management, sales, marketing, digital, partnerships and operations often sit in silos. Everyone is busy, but the system isn’t optimised.
A modern revenue engine needs:
Clear commercial ownership
A regular commercial “war room” where data is reviewed, and decisions are made
A roadmap with a small number of initiatives that actually move the needle
Where to start
If you’re a GM, owner or commercial leader and you recognise some of these patterns, the answer isn’t “do everything at once”. It’s to:
Assess where your engine is weakest (mix, channels, ancillaries, data, organisation).
Pick three high-impact actions for the next 90 days.
Establish a basic structure for reviewing progress.
That’s the work I spend most of my time on with hotels and hospitality platforms: moving from a collection of good ideas to a focused, robust revenue engine.
Suppose you’d like a simple way to diagnose where you stand. In that case, I’ve created a Hospitality Revenue Engine Diagnostic Checklist you can use with your team – and if you want help turning that into a 90-day plan, that’s exactly what my advisory programmes are designed for.
