Revenue management software is a digital tool designed for the hospitality industry to optimise room rates based on predicted demand. It uses data analytics to forecast hotel room demand, allowing hoteliers to adjust prices accordingly to maximise revenue. This dynamic pricing strategy takes into account various factors, such as seasonal demand, local events, competitor prices, and historical data, to set the optimal room rate at any given time.

The primary goal of revenue management software is to sell the right room to the right customer at the right time for the right price. By doing so, it helps hotels increase their Revenue Per Available Room (RevPAR) and overall profitability. In an industry where room rates can fluctuate frequently based on external and internal factors, having a software that can quickly and accurately adjust prices can be a game-changer.

Choosing the right revenue management software, like SiteMinder, can be a transformative decision for a hotel’s bottom line. This page will guide you through the essential considerations when evaluating potential technology partners, ensuring you make a choice that aligns with your hotel’s needs and goals.

Why do you need revenue management software for your hotel?

Revenue management software is an indispensable tool for modern hotels, streamlining various crucial aspects of hotel operations. By analysing factors like market demand, competitor prices, and local events, the software optimises room pricing, ensuring neither underpricing nor overpricing. It offers real-time updates to adapt to the dynamic nature of the hotel industry and integrates seamlessly with other hotel systems, creating a unified operational platform.

Furthermore, it aids in forecasting future room demand, efficiently managing inventory across distribution channels, and providing in-depth performance analytics. This not only enhances the guest experience by anticipating busy periods but also significantly boosts profitability.

In a competitive landscape, such software not only automates manual tasks, reducing errors, but also ensures hotels stay ahead of their competitors by quickly responding to market changes.

If you’ve decided to purchase hotel revenue management software, you’ve really only started your journey. Understanding what the software is and the benefits it provides is the easy part. Now you’ve covered that, there is plenty to do in regards to making a final purchase decision.

Choosing the best provider for your individual property and business case means a lot of research is required to sift through the many options on the market.

We could tell you the obvious course of action is to move forward with an established industry leader like SiteMinder but no one should make a blind choice when investing in such critical software that’s going to impact the success of a business.

Example of a revenue management software solution

There is no shortage of hotel revenue management software that could suit your needs. Some will present very similar offerings, while others will work in more specialised or niche territory.

For example, some will be based largely around rate setting and some may focus specifically on revenue strategies related to food and beverage services. It’s a broad sector of hotel technology, meaning you have to be especially clear about what you want and what results you expect from a provider.

An easy example to give is SiteMinder’s hotel business intelligence software, which enables you to understand the local market and your competitors, and set rates to deliver the maximum amount of revenue to your property. This is regarded as a rate shopping and market intelligence tool.

SiteMinder has decades of industry experience and more than 47,000 hotel customers, pioneering some of the most powerful hotel technology solutions that exist today.

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Types of hotel revenue management software 

Revenue management software solutions consist of a broad range of products. They can serve many different purposes and be suited to a whole spectrum of properties, including:

• Tools targeted towards smaller, independent, hotels
• Tools targeted towards larger, enterprise, groups
• Specialised services for accounting and financial management
• Tools that specialise in food and beverage management
• Tools that focus on room pricing etc

That’s why it’s very important to clearly understand what you want for your property. You don’t want to make the mistake of using the wrong tool or buying one that doesn’t include all functions you need.

Generally speaking, hotel revenue management software can be placed into two groups:

• Standalone: All-in-one revenue management solutions offer features like forecasting, pricing and reporting, and are built to handle large inventories and dynamic pricing complexities. This type of RMS can be particularly useful for large chains and resorts, or properties that offer (relatively complex) package deals.
• Integrated: An integrated revenue management software solution connects seamlessly to existing hotel software, allowing it to provide additional features and functionalities. This type is most commonly used by smaller properties who don’t need the analytical power of a standalone RMS, and can benefit from the extra efficiency and flexibility that an integrated solution can offer.

Some of the most useful RMS tools are focused on rate shopping. If you can set your prices accurately to maximise revenue and profit, it gives you a lot more freedom to manage revenue across the rest of your business.

Reports generated by revenue management software

RMS solutions are capable of generating a wealth of different reports, with each providing insight into the fiscal state of play within your hotel. Examples include:

• Revenue performance reports: Track revenue against your forecasts, budgets and historic data, breaking data down by time, segment, channel or product.
• Demand and booking reports: Identify current and future trends around bookings, cancellations, and no-shows to better anticipate fluctuations in demand.
• Pricing and rate reports: Compare your current prices with competitor rates to identify opportunities and craft strategic pricing that gives you an edge.
• Occupancy and availability reports: Understand your current and projected occupancy levels, room availability over specific periods, and potential oversell risks.
• Segment and channel reports: Analyse revenue by customer segment (e.g. business vs leisure) or distribution channel (e.g. Direct vs OTA vs GDS).
• Forecasting reports: Predict future demand, revenue, and occupancy based on historic data and current booking trends.
• Performance KPIs: Track key metrics like RevPAR, ADR, TRevPAR and GOPPAR to ensure they’re moving in the right direction over time.

Benefits of having a revenue management software in your hotel

The best revenue management software is capable of delivering a wealth of (very literal) value to your hotel. Here are just some of the most compelling perks that come with the implementation of pricing and revenue management software.

Increased revenue

By predicting demand and optimising pricing, the best hotel revenue management software helps you to maximise both occupancy and room rates, which in turn maximises revenue.

Dynamic pricing

Dynamic pricing ensures that your room rates always reflect demand, increasing when demand is high to maximise revenue during peak periods, and decreasing when demand is low to maximise occupancy during lulls.

Better decision-making

Revenue growth management software drives data-driven decision making. There’s no need to rely on instincts or gut-feel–more often than not ,your answer can be found by analysing the data.

Integration support

The best revenue management software companies will ensure your RMS connects seamlessly to your current hotel tech stack, which will allow you to generate deeper insights and set up all manner of time-saving automations. 

Better guest experience

By implementing revenue management software, hotels can ultimately enhance their guest experience by offering loyal guests consistently fair and transparent pricing.

Revenue management software pricing

Price will obviously vary based on the type of tool you’re looking at. In the case of tools based around market intelligence and rate shopping, price will be very reasonable.

Look for providers who offer a flexible pricing model. This means no lock-in contract or commissions. The preferred way of paying is by set monthly fee.

You can always move to a contract later if you want a discounted price and are happy with the service.

Commonly, the amount you pay each month will depend on the size of your property. The more rooms you have, the higher your fee will be. However the price will remain pretty static for hotels with less than 70 rooms. See a pricing example for your property.

Comparing free hotel revenue management software companies 

Before deciding on the right RMS for your property, it’s important to weigh your options against relevant criteria. You can use review sites such as Hotel Tech Report to perform your competitive analysis. On Hotel Tech Report you’ll be able to see scores and user ratings for factors such as:

• Ease of use
• Range of functions
• ROI
• Customer support
• Implementation process
• Integration
• Price

Additionally, you can view full customer reviews and recommendations from hoteliers just like you to gain real-life user insight. 

Social media pages such as Facebook provide another medium to check whether an RMS provider could be a good fit for your business. Do they interact with their audience? How many followers do they have? Are there positive reactions to their content? All of this can serve to help inform your decision.

How to find the best hotel revenue management software 

Your RMS provider shouldn’t just unlock and analyse large amounts of market data for your hotel, it should also make the information digestible, and therefore actionable.
Before you make your investment, ensure your tool has these features:

All-day visibility of local supply and demand

Your chosen RMS should be able to continuously monitor shifts in demand and competitor availability throughout the day, then respond with timely pricing advice or decisions. You should have the option of allowing the RMS to change rates automatically while receiving pricing notifications.

Compare room rates with competitors in one view

You should be able to view your pricing alongside multiple competitors in a single dashboard. This provides perfect transparency in terms of where you sit in the market at any given moment, and powers fast benchmarking and better strategic alignment.

Know local market pricing up to one year in advance

Find an RMS solution that allows you to access forward-looking data on market rates and trends to support long-term pricing and inventory planning.

Unlimited rate shopping

There shouldn’t be any limit on how much market research you can do, so avoid subscription revenue management software that impose rate shopping limits. Let your team conduct checks of competitor pricing across dates, room types and channels without any restrictions.

Exportable reports

Pick an RMS that allows you to download detailed performance, pricing and forecast reports in whatever format you choose, so that insights are easily shared with and analysed by your entire team.

Rate strategy rule creation

Look for RMS tools that allow you to build custom rules when automating pricing responses. These rules can be based on predefined triggers like levels of occupancy and demand, or changes in competitor pricing.

Constant access to the latest market information 

The best RMS tools will serve up real-time market insights in a visual and accessible form, to ensure you’re always offering the most competitive rate for your rooms.

Analysis of how your property is performing online

Another important RMS feature allows you to see your rates as your guests see them. By analysing relevant listings across leading global OTAs, you get a clear picture of where your hotel offering sits against your competitors.

Alerts and preset rules

Automation is a key feature of leading revenue management tools. You should be able to set up notifications that inform you of key market developments, and you should be able to set rules that trigger automatic actions, e.g. if a set of competitors increases their rates by 20% for certain dates, your prices rise too.

Direct booking functionality

The purpose of a revenue management solution is to make your hotel more money, so the best will offer a direct booking engine that allows you to avoid the sky-high commission fees – usually 15-25% – that you’re forced to pay to OTAs and third-party booking sites.

How to improve your cash flow using hotel revenue management software 

Amidst the constant work of managing a hotel day-to-day, being bogged down by data might seem like the last thing you want to do. But with the right tools and know-how, it can be out of the most beneficial updates you can make in your daily operations. 

By analysing the facts and figures across your hotel operations, you’ll be able to find plenty of opportunities to grow your revenue stream and further the success of your business. Often it can only take a small tweak to have a big impact on your annual revenue.

To help raise your bottom line, practice these data strategies at your hotel to maximize your revenue potential:

1. Re-evaluate your revenue channels

When it comes to your hotel distribution channels, it may seem like your “golden goose” is the channel that drives the most demand and highest number of bookings.

However, to truly understand which channels are your most valuable, you need to look at them from a net revenue perspective. This means you need to ask how much profit you’re actually generating from each channel after deducting the associated overhead costs of running them. 

If you find that your most profitable channel is actually the one you place less focus on, you get an opportunity to grow the demand for it. This allows you to lower your cost per booking ratio to ultimately improve your overall profitability day-to-day.

2. Balance the pros and cons of channels over time

It’s important to constantly track the performance of marketing and distribution channels. While one strategy may have worked perfectly two years ago, you need to investigate if it’s still giving you the same benefit today. Perhaps the spend has gone up, while the revenue has gone down.

On the other hand, some channels may have added benefits like brand awareness that counteract a lack of revenue creation, and are still very useful. An example is holiday deal sites that you might advertise on. The rate is going to be low and the commission is likely to be high, but the exposure will also be significant. In this instance you would have to weigh  whether it’s worth it for your brand to be on such websites, and for how long.

3. Use your hotel guest data to optimise your offering

The insights you can gain from each guest that stays at your hotel are invaluable. If you can detect trends in your customer base e.g., what their preferences are, how long they typically stay, their purpose of travel etc. you can start to meaningfully shape a successful marketing and distribution strategy.

From here, you’ll be able to identify any superfluous strategies and replace them with a more targeted approach, using tactics like emails or social media campaigns, to boost your conversion rates and improve your bottomline.

4. Use technology to your hotel’s advantage

A lot of the data you need to make informed decisions can be gleaned from the technology your hotel uses such as your channel manager or booking engine and website. Run reports and generate insights that you can act on almost immediately.

Of course, a revenue management system is one of the best solutions to keeping on top of your income, profits, and data. The right tool can ensure the revenue management at your hotel is down to a science and offers real-time automation.

One such tool is Pace, and CEO Jens Munch makes a pertinent statement about the state of hotel industry today:

“Many industries, including travel, still suffer today from low quality data hidden away in proprietary systems. However, there’s a trend emerging with modern cloud providers to alleviate those problems by enabling connectivity layers for their customer’s data. This lets solutions like us democratise our services and give hoteliers better access to state-of-the-art revenue management.”

Pace, and other machine learning services, generate significant optimisations and competitive advantages for their customers, and should be a serious consideration for any hotel wanting to boost their revenue.

A Central Reservation System is a type of reservation software that is used to update and maintain hotel inventory and rate information so that hotels are able to manage guest reservations in real-time. Its definition can be simplified to its purposes of centralising data from every connected distribution channel and system, including the hotel’s property management system and booking engine.

By consolidating so much data, it can also be a very useful tool for hotel managers when thinking about revenue management strategies. Here’s everything you need to know about Central Reservation Systems.

Why is a hotel Central Reservation System important?

A hotel Central Reservation System is important for keeping track of reservation data and having the appropriate information to optimise distribution for the hotel. Because the CRS transfers reservation data from the PMS/s to the distribution channels in real-time, hotels are able to reach guests across as many channels as needed.

In this aspect, a Central Reservation System acts in much the same way as a channel manager. A CRS generally has more features than a standalone distribution solution, but doesn’t offer the same power and performance as an integrated hotel commerce platform.

4 advantages of a Central Reservation System

Here’s four reasons hotels will choose to use a central reservation system to improve their business.

1. It can improve customer experiences

The CRS can help hotels track patterns in guest purchasing behaviour and also record reservation data to enable the creation of guest profiles.

2. It keeps everything in one place

Trying to consolidate data from OTAs, the GDS, brick-and-mortar travel agencies, phone reservations, and more can be very tricky when done manually. The Central Reservation System ensures all this information is stored and accessible in one place, and always up-to-date.

3. It increases efficiency

Admin errors, lost data, and slow processes all cost money in the long run so it’s crucial for hoteliers to find ways that make backend operations easier and quicker. By preventing data fragmentation, the CRS saves hoteliers a lot of time, money, and effort.

4. It enables better decision making

By giving greater visibility on bookings, a Central Reservation System lets a hotel make more informed sales and pricing decisions and make more accurate performance forecasts.

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How does a CRS work at a hotel?

A CRS works by collating vast amounts of data from a number of different sources into one accessible location. The CRS is able to connect the hotel’s property management system to every distribution and sales channel the hotel might be using. This ensures that all reservation data is safely recorded and stored in the hotel’s own system, meaning inventory will always be accurate and up-to-date everywhere it needs to be.

The synchronisation works the other way too – the CRS can also push updated rates and availability to the distribution channels where guests are booking. For example, if you need to update a packaged rate for your hotel, you can do this within the CRS and the new rate will be reflected on your connected OTAs, your own direct booking engine, and in your PMS.

Types of central reservation systems

A Central Reservation System is just one type of reservation software. There are a number of systems on the hotel market that can help improve reservation management. Other types of reservation systems include:

• Property Management Systems (PMS)
• Channel Managers
• Booking Engines

There are also many different providers of these systems, including Central Reservation Systems, and it’s up to you to decide what is the best fit for your property.

Central reservation system examples

Some common Central Reservation System examples you might come across, which can be integrated via SiteMinder’s platform, include:

• Choice
• GuestCentric
• Pegasus
• ROIBACK
• SHR

SiteMinder’s platform integrates your CRS with the leading online travel agencies (OTA) to increase your reach and lower your cost of distribution. With SiteMinder, inventory and rate updates to and from your CRS are automatic and real-time eliminating manual work and lowering your cost of acquisition.

A hotel revenue management system (RMS) is a technology platform that helps hotels make smarter pricing and inventory decisions. It collects and analyses data, like occupancy rates, booking patterns, local demand, and competitor pricing, to automatically adjust room rates in real time.

Think of it as a behind-the-scenes strategist. While you focus on running your property, the RMS is working in the background to make sure you’re charging the right rate, to the right guest, at the right time.

For hoteliers who are still using spreadsheets or ‘gut instinct to set prices’, switching to a revenue management system means gaining a data-driven, automated way to maximise revenue without increasing workload.

And it’s not just for large chains anymore. Many modern RMS platforms are now accessible to medium-sized hotels and growing groups, especially those juggling multiple locations and seasonal fluctuations.

In this article, we’ll show you why hotels that adopt revenue management software report an average increase in revenue per available room (RevPAR) of between 7% and 20%, and how your hotel can effectively adopt the best possible tool for your specific needs.

Why is a revenue management system for hotels important?

Running a hotel is already complex. Between staff management, guest experience, and day-to-day operations, pricing strategy can quickly fall to the bottom of the list, despite being one of the biggest levers you have for success. For hotel owners managing multiple properties, the challenge grows. Coordinating rates across locations without a centralised system is time-consuming and risky. 

A revenue management system removes the guesswork. It uses live data to automatically adjust your prices based on demand, seasonality, competitor behaviour, and booking trends. An RMS gives you a single source of truth so you can manage pricing and performance from one dashboard rather than toggling between spreadsheets or systems. 

Instead of reacting after the fact, you’re staying ahead of the curve. More importantly, it frees up your time. Time you can reinvest into your team, your guests, and your business strategy.

Hotels that implement revenue management systems report measurable improvements in both operational efficiency and financial performance. In fact, the global hotel RMS market is expected to grow from USD 16.4 billion in 2023 to over USD 29.4 billion by 2031, driven largely by increased adoption among mid-sized hotels.

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How do hotel revenue management systems work?

In short, an RMS is a data connector. It pulls in data from various sources, including your hotel’s booking history, current occupancy, competitor rates, market demand trends, and even local events. It analyses all this information in real time and recommends optimal pricing for each room type.

Many RMS platforms also update your rates automatically across your direct booking site and connected OTAs, so you don’t have to log in to multiple platforms. You can set rules and thresholds, such as minimum and maximum prices or lead-time strategies, so the system aligns with your business goals.

Some tools go a step further by offering demand forecasts and performance dashboards. These insights help you plan staffing, promotions, and even room availability across different distribution channels.

Instead of spending hours adjusting rates manually, you can focus on strategy while the system keeps your pricing competitive and your inventory selling efficiently.

Use of revenue management system examples

• A 60-room coastal hotel sees spikes in demand during long weekends. With a revenue management system, it detects booking surges early and raises rates automatically, adding thousands in incremental revenue each season. 
• A multi-property hotel group uses an RMS to align pricing strategies across three locations. With a centralised dashboard, the revenue manager saves hours each week and responds faster to market changes.

Key benefits of revenue management systems (RMS)

A revenue management system isn’t just a pricing tool. It’s a business growth tool. For hotel owners managing multiple properties, or just looking to make smarter decisions, the right RMS can:

Improve profitability

By analysing live demand and competitor pricing, an RMS helps you charge the optimal rate for every room. This means capturing high-value bookings when demand is strong and staying competitive when demand softens.

Increased efficiency

Instead of updating rates manually across multiple channels, an RMS can automate this process. That means fewer mistakes, better rate parity, and more time for you and your team to focus on guests, not spreadsheets.

Better decision-making

Dashboards and forecasting tools provide a clear view of your performance and market trends. You can see what’s working, spot opportunities, and make proactive decisions that support your revenue goals.

Enhanced customer experience

With smarter pricing, you avoid underpricing during peak periods or overpricing in slow seasons. Both hurt guest satisfaction and bookings. The right RMS helps ensure your rates match what guests are willing to pay, improving conversion and perceived value.

“At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, we are also more efficient in terms of time; we can get more work done.”

Shadi Wijaya,

Corporate Director of Revenue

The Phala Group

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How to find the best hotel revenue management systems

Choosing the right RMS comes down to finding a system that matches your property’s needs today and can scale with you tomorrow. Here are some essential features to look out for:

• Rate comparison: See how your pricing stacks up against competitors in real time, so you can stay competitive without constant manual research. 
• Forecasting: Predict future demand using historical data and booking trends, helping you prepare for high and low seasons with confidence. 
• Dashboard with reporting: Get a clear, centralised view of performance across one or more properties. Ideal for tracking KPIs like occupancy, ADR, and RevPAR. 
• Integrates with existing systems: The best RMS will plug into your PMS, channel manager, and booking engine, syncing data and reducing double-handling.

Not every system offers the same depth or flexibility, so it’s worth trialling options that let you see the tools in action.

The top 5 hotel revenue management systems

If you’re ready to invest in a revenue management system, these platforms are worth exploring. Each offers different strengths. Some are built for simplicity, others for advanced strategy, but all aim to help hoteliers grow revenue and work smarter.

1. Duetto

Duetto gives hotels more control over pricing than many other systems. Its open pricing model means you can set rates by room type, channel, and customer segment without sticking to rigid pricing structures. It also offers smart automation with custom rules, so you can decide when the system should take over and when you want to stay hands-on.

2. Cloudbeds

Cloudbeds’ RMS uses data from across its platform to automate pricing and inventory decisions. Its user-friendly interface is great for independent hotels and small groups that want to get started quickly with smart pricing.

3. BEONx

BEONx focuses on holistic revenue strategy. It’s particularly strong for hoteliers who want to blend revenue management with guest experience metrics, offering features that help align pricing with guest value.

4. IDeaS Elevate

A well-established RMS with a deep feature set, IDeaS is known for its forecasting accuracy and strong analytics. It’s popular with larger hotels and chains that need robust data modelling.

5. Diamo

Diamo is a more recent entrant focused on making revenue management accessible to mid-sized hotels. Its interface is clean, and it provides helpful decision-support tools for teams that aren’t ready for a full enterprise solution.

These platforms vary in cost, complexity, and integration options, so the best choice depends on your size, tech stack, and growth plans.

But OpenAI’s Operator, launched earlier this year, revived concerns about the lifespan of long-standing industry players in the wake of new technologies.

The AI agent not only reads data, but can also interact with a browser.

This means in addition to generating travel recommendations and plans, Operator can make bookings, only asking users to take over for tasks that require login and payment details, or to solve CAPTCHAs.

Adding to the momentum, Perplexity recently partnered with fintech platform Selfbook and Tripadvisor to bring hotel bookings directly into its AI-powered ‘answer engine’ – another clear sign that agentic AI is on the rise.

Currently, Online Travel Agents (OTAs) are still the biggest drivers of hotel booking revenue, having withstood and adjusted to decades of technological advances – including mobile, a revolution that many thought would leave OTAs behind and instead has seen them use to further their competitive advantage.

Yet new tools like Operator and Perplexity raise questions.

Does the advent of AI agents signal the beginning of the end for third-party bookings, or are we simply entering a new phase in the evolution of online hotel distribution? And, how can other key industry players, particularly hotels, learn from the action OTAs have already taken?

Glimpse into the AI-led future

As with any industry where multi-layered intelligence is key to achieving the ultimate goal of personalisation, data is king in travel.

For this reason, revenue managers and OTAs analyse a range of past, present and future factors to sell the right rooms at the right times, at the right prices, to the right guests.

So when looking for their next stay, today’s guests are offered broadly personalised options largely based on the type of traveller profile they fall into, according to their demographic’s general preferences.

AI tools like Operator could take things a step further and tailor accommodation offers to suit each individual guest, thanks to the large pool of data at AI’s disposal and the technology’s ability to analyse and act on all of that information quickly.

Even with this potential, Simone Puorto, founder of consulting firm Travel Singularity and AI-powered start-up Rebyū, does not believe AI tools will make OTAs obsolete.

But he can imagine a world where OTAs transform to become data hubs from which AI agents would draw information, leading the hotel industry into a new era of “hyper-personalisation”, led by both OTAs and revenue managers.

“With more information, what you could do is create a rate for [Guest A], then create a rate for [Guest B],” Puorto says. “This will become more than revenue management. I think it will become traveller management – you will really optimise for that specific person rather than just try to create boxes [to sort them into].”

In addition to guest profiles splintering from demographics into individuals, Puorto expects an upcoming explosion of AI-powered tools will further fragment the travel industry’s tech stack offerings in the short-term.

This would compound pre-existing industry issues, with hotels already facing the challenge of trying to connect data across a throng of sometimes-incompatible OTA and other third-party systems.

But this won’t be the case forever.

Puorto predicts the natural accumulation of closures and mergers of AI tools will eventually result in a more centralised travel tech ecosystem.

Founder and CEO of Catala Consulting, Thibault Catala, expects the technologies could even morph into a single form of AI.

“I do believe the opportunity in the next few years will not be about fragmentation, but centralisation, of data,” Catala says. “And AI will allow this because that would be the only [thing able] to handle that amount of data and to be able to identify those different systems, which humanly is currently not possible.”

Slow on the tech uptake

Puorto points out we already live in a hyper-personalised world.

Think of Netflix or Amazon; no two homepages are exactly alike, as the companies target customers with suggestions for products that will interest them most as individuals rather than as members of demographic groups.

But apart from OTAs, which have proven to remain at the forefront of new tech adoption and increased personalisation, the rest of the travel industry lags behind.

Catala estimates the vast majority of hotels, particularly those on the smaller scale of the market, are unaware of the tools and technologies already at their disposal.

“I’m blown away every day by the state of the technology in the hospitality industry,” he says. “Even people reading [this] blog are quite advanced, because they are aware of revenue management.

“To talk about a system, to talk about connection, AI and so on, that seems super-duper advanced compared to the real state of the market. So for me, the biggest opportunity in the next few years, it’s education; increasing awareness of tools, best practices and so on.”

Optimising for AI

As travel hurtles towards an AI-centric environment, OTAs are working fast to accommodate the technology and have a significant head start.

So, how can they improve even further, and how can hotels catch up? First, consider all options with an open mind.

Digital transformation consultant Howard Phung says: “Many hotels, especially traditional operators, are risk-averse and reluctant to cede control to AI, particularly in areas like pricing and guest interactions.”

Compounding the reluctance to move on with new technology is the practical difficulty of adopting that technology, with Phung, like Puorto, emphasising the fragmented state of the industry.

“Many hotels still operate on legacy systems that don’t easily integrate with modern AI solutions,” he says. “Unlike industries with standardised tech stacks, hospitality tech is fragmented, requiring custom APIs and middleware for AI adoption.”

“However, AI doesn’t need a perfect ecosystem to be impactful. It will adapt to the fragmentation by working within existing tools, leveraging cloud-based integrations, and offering modular AI capabilities that don’t require a complete tech overhaul,” Phung adds.

To smooth the road for AI, an Agent Experience (AX) website audit is in order, according to Puorto. He says with the tech moving from search engines to “do engines” as AI agents are now capable of acting on a guest’s behalf, there needs to be greater understanding of how these agents work in order to optimise websites as necessary. Beyond OTAs, this is especially relevant for hotel websites, which remain a significant source of direct booking revenue for properties.

It follows, then, that AX Optimisation (AXO) may eventually surpass SEO in importance.

Catala says it was enough to be among the first 10 results of a Google search page in the past. Looking ahead, an AI agent may only present guests with a single recommendation, customised according to its in-depth knowledge of the guest.

Luckily, AXO and SEO share many common values: just as broken links are not good for SEO, neither are they for AXO, Puorto explains. Likewise, meta titles and descriptions are equally important for human user and AI agent experiences.

But some adjustments still need to be made for both hotel and OTA websites.

For example, Puorto says the use of CAPTCHA may need to be reviewed, as AI agents cannot solve the tasks. Agents also dislike pre-contracted static rates, instead preferring real-time inventory.

And although minimalistic website design is trending right now, AI agents “love to read”, Puorto says.

“It could be a good idea to start getting a little more text on your website,” he says. “I was completely against that before. Nobody’s reading blog pages on hotel websites… but [AI] agents, yeah, why not?

Puorto adds, “Probably we will see a return to a little more ‘90s design, just because [AI] agents, they don’t freaking care if it’s beautifully designed. They want the information.”

Travellers still prefer a human touch

Hotels do not adopt shiny new technology just based on trends, Phung says; they adopt it when it has proven to solve a problem.

In terms of AI, he says hotels are seeking tools that enhance efficiency, reduce costs, and improve the guest experience.

“The industry sentiment is cautiously optimistic – hotels are open to AI but want to ensure it is secure, scalable, and easy to integrate without disrupting operations,” Phung says.

Whether or not hotels adopt up-and-coming tools, the strength of AI’s future grip on online hotel distribution will be determined by the extent to which guests are willing to abandon older technology and platforms to embrace the new.

And this is where OTAs have the advantage.

In 2024, SiteMinder research found OTAs were still the biggest drivers of total revenue for hotels. SiteMinder also found travellers are hesitant to adopt a fully AI-centric hotel model, with only 1 in 10 agreeing the technology should do it all.

OTAs have proven to be resilient and adaptable to decades of technological advances.

“Booking a hotel in 2002 and booking a hotel now, it’s not that different if you want to do it online,” Puorto says.

“Nothing big really changed.”

Much of the enduring popularity of OTAs can be attributed to the simplicity of browsing and booking on their websites. And instead of a favourite hotel or brand, Catala says many travellers are instead loyal to a particular OTA.

But that does not mean accommodation providers can rely solely on OTAs to gain them new and repeat guests.

“That’s very important to think about the way people find [out] about us, but at the end of the day, the relationship, the experience, the connection … that’s human-to-human,” Catala says.

“That’s what will differentiate [you from] someone who is relying only on OTAs and doesn’t care about the guest.

“But that’s up to you to make sure you go to the check in, you go to the reception and you connect with your loyal guests. You talk to them, you have your own communication program, marketing activities to reach out to those guys.”

Evolve now to avoid to avoid future extinction

While AI agents like Operator could theoretically bypass OTAs by offering hyper-personalised booking experiences, Phung, like Puorto, does not see OTAs disappearing anytime soon.

Instead, he says, AI will likely strengthen OTAs in several ways.

“Rather than being a death knell for OTAs, AI is more likely to encourage them to become more innovative, faster, and more automated distribution channels,” Phung says.

“The future isn’t about OTAs disappearing – it’s about AI-powered travel experiences that blur the lines between direct and third-party bookings.”

But in order to be strengthened, not eaten, by AI, Catala says the technology needs to be embraced correctly by OTAs and revenue managers.

He warns those who only focus on the old status quo may disappear, while those who evolve and build more diverse expertise by experimenting with new technologies will stay competitive.

Several major OTAs are fully onboard and already years into investing in an AI-led future. Companies like Booking.com and Priceline have partnered with Operator. They, alongside other OTAs like Kayak, Expedia and Ixigo, have developed onsite AI programs which further personalise services for customers – something most hotels cannot afford to do at the same level.

Meanwhile, revenue managers could be in a more precarious position than OTAs; Catala says some people in the industry expect the role of revenue manager could disappear in the next five years, either being replaced by AI or integrated into other positions.

How revenue managers adapt to new technology will mean everything for their future.

Just like OTAs, Puorto says it could serve revenue managers well to start working hand-in-hand with AI agents. He predicts revenue managers who have a good understanding of the market could become sought-after as consultants and trainers for AI agents.

But even in the age of AI, it is important to remember human connection goes a long way.

“Those kinds of tasks [like reporting on pricing] can be automated by AI with more accuracy,” Catala says.

“But the strategic elements, the experimentation elements, the influence, the communication, that’s something which AI cannot do.

“We are still operating not in [business-to-business], but in [human-to-human].”

Galileo is a travel distribution platform that utilises a global distribution system (GDS) to allow travel agents to book hotels, flights and other travel services.

Galileo GDS is owned and operated by Travelport, one of the three major players in the GDS space (along with Amadeus and Sabre). Travelport also runs the Apollo and Wordspan GDS platforms. When a hotel uses a connectivity partner like SiteMinder GDS, travel agents and corporate travel management companies can book inventory through Galileo and other major GDS providers.

While Galileo is mainly used for airline bookings, it’s also used by travel agents to book hotels, car hire and other travel services for their clients.

In this guide we’ll look at Galileo through the lens of a hotel looking to learn more about the GDS, from how it works to how it might capitalise on the distribution opportunity.

Why do hotels need Galileo GDS integration?

Galileo (along with Apollo and Wordspan) is owned by Travelport, which is one of the world’s ‘Big 3’ GDS vendors.

This means that when a hotel’s inventory is listed on Galileo, it’s also listed on those other Travelport platforms, which allows it to reach a vast network of 68,000 travel agencies across the globe, equating to over 250,000 individual agents.

Galileo is particularly popular with travel agents in Asia and the Middle East, so being bookable through this GDS platform can significantly increase the number of bookings you generate from these parts of the world.

What is the role of GDS in hospitality?

The GDS offers a way for travel professionals to book travel services – flights, hotel rooms, car rentals, tours – for their clients.

The GDS was originally created as a way for airlines to simplify and speed up their booking processes. As more airlines joined, the system slowly grew, eventually becoming a marketplace for all types of travel service providers.

To be listed on a GDS, a hotel can work through a connectivity partner, like SiteMinder GDS.

Gain access to every major GDS with SiteMinder

Why limit yourself to Galileo, or even Travelport? With the help of SiteMinder, you can connect your hotel to all major vendors on the GDS, including Sabre and Amadeus, to generate more visibility, bookings and revenue than ever before.

Learn more

How does Galileo GDS differ from other GDS systems?

In many respects Galileo is very similar to other GDS operators like Apollo (which formed the base from which it was originally developed), Worldspan, Sabre and Amadeus. But a couple of key differentiators include:

• Popularity in Asia, and particularly the Middle East, where it’s the GDS platform of choice for 55% of travel agents.
• Travelport integration: any hotels that are bookable through Galileo will also be found on Apollo and Worldspan.

What are the key benefits of Galileo GDS for hotels?

Galileo is best known as an airline GDS. So what can it offer hotels? Well, first and foremost, travel agents generally need to book accommodation alongside flights, so hotels are wise to have a presence wherever flights are being booked.

But Galileo also offers a number of other unique opportunities to hotels.

Greater global reach   

Galileo, and the GDS channel in general, forms the perfect complement to your other sales channels – OTAs, metasearch and direct bookings – because it helps you attract bookings from sources (namely travel agents and corporate travel management companies) that those other channels cannot.

Group bookings

Galileo enables travel agents to efficiently book blocks of rooms for travel groups, so when you have a presence on Galileo, you can more efficiently earn large bookings.

Corporate travel management

Galileo helps make your hotel visible to corporate travel agents and management companies, where you can win high-value bookings from business travellers. Corporate clients are a particularly valuable source of bookings because they can be less price-sensitive and tend to fill mid-week lulls.

Efficient upselling opportunities

A GDS grants your hotel the opportunity to upsell without needing to put much effort in at all. You can offer travel agents (and their clients) value-added options like premium rooms, spa packages or in-house dining, to both personalise the experiences you deliver and boost your revenue.

API flexibility for unique hotel systems

SiteMinder GDS offers API integrations to help you seamlessly connect to your existing tech and tools, such as your booking and property management systems. This allows you to update your availability, inventory, pricing and info automatically and in real-time across Galileo and all other major GDS vendors.

“The channel manager has been invaluable as we expanded from three to 11 channels. It made the process seamless.”

Ahmad Zainal Arifin,

Revenue & Front Office Manager

Grün Resorts

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What are the technical requirements for implementing Galileo GDS?

It’s important to note that as a hotel, you do not connect directly to Galileo. Galileo is what travel agents and professionals use to book your rooms.

On the service provider (hotel) side, while you can be listed on Galileo, you’ll never directly interact with Galileo. You’ll instead need to control your GDS presence through a connectivity partner, like SiteMinder GDS. Here’s how that works:

1. Choose your GDS connectivity partner

Choose a partner that offers seamless integration with your property management system (PMS), and that works not just with Galileo, but with all major GDS vendors. The connectivity partner is tasked with facilitating the connections between your hotel and the GDS vendors, which involves translating your room inventory, rates and availability into a format that GDS systems can understand and access.

2. Configure your property details

Provide your GDS connectivity partner with all the information it needs to pass on to the GDS vendors: room types, rates, amenities, imagery, policies, availability and more. This data is then synced with Galileo and the other GDS vendors.

3. Maintain and update your listings

Once your data is synced, you can update listings and information in real time through your connectivity partner. You can manage pricing, promotions, availability and more. Regular updates ensure your hotel remains competitive and visible to travel agents booking through Galileo and other GDS vendors.

Apollo is a global distribution system (GDS) vendor which allows travel agents to access and book inventory from hotels, airlines, car hires, and more.

Apollo is owned and operated by Travelport, one of the three major players in the GDS space – Travelport also runs Galileo and Wordspan. When a hotel connects to the GDS via a partner like SiteMinder, it becomes bookable on Apollo by travel agents around the world.

While airline bookings are the primary focus of Apollo, it also allows travel agents to book hotels, car hire and other travel services.

Apollo GDS history

Like other major GDS brands, such as Sabre and Amadeus, Apollo was established by United Airlines in 1971 as an early computerised airline booking system. It slowly evolved into a more general travel booking service, and by 1986 had been given a new name – Covia – and was being marketed as an independent affiliate of United Airlines.

It was eventually absorbed into Galileo international, which in turn was absorbed into Travelport. The name was changed back to Apollo during this period of M&A action, and Apollo now sits alongside Galileo and Worldspan in the Travelport stable.

In this guide we’ll break down Apollo from the perspective of hotels that want to capitalise on a GDS as a key hotel distribution channel.

Why engage a GDS partner like SiteMinder to access Apollo?

Why should a hotel work with a connectivity partner, such as SiteMinder GDS, to gain bookings through Apollo? There are a few compelling reasons, including:

Global reach

Through Travelport, Apollo connects hotels to a quarter of a million individual travel agents from around the world, providing exposure to group, corporate and international travellers that you wouldn’t otherwise have access to. And when you choose to partner with SiteMinder, you actually gain access to 600,000 travel agencies, through additional GDS connections. It allows your hotel to tap into markets that can be impossible to reach through traditional hotel marketing efforts.

Increased bookings

Gain access to travel agents who book on behalf of corporate, group and leisure travellers. The corporate travel market can be a particularly valuable one to tap into, as it can be less price sensitive and can significantly boost mid-week and low season occupancy rates.

Streamlined operations

When you connect to Apollo through SiteMinder GDS, you enjoy real-time availability and pricing updates, ensuring accurate information is shared with travel agents. The simple SiteMinder GDS user experience reduces the risk of overbooking and simplifies reservation management for hotels.

Gain access to every major GDS with SiteMinder

With the help of SiteMinder, you can connect your hotel to all major vendors on the GDS, including Apollo, Sabre and Amadeus, to generate more visibility, bookings and revenue than ever before.

Learn more

Apollo GDS Frequently Asked Questions

Don’t know much about Apollo? Let’s answer some quick-fire questions to give you a sense of what this platform is all about.

Who owns Apollo GDS?

Apollo is currently owned by Travelport, the world’s third-largest global distribution system vendor (after Amadeus and Sabre).

Is Apollo GDS part of Travelport?

Yes, Apollo is a distinct brand that operates under the Travelport umbrella, alongside Galileo and Worldspan. When a hotel (or any other travel service provider) is listed on one of these vendors, it is automatically listed on all of them. 

Is Apollo GDS going away?

Apollo has evolved a lot over the years, from United Airlines’ reservation system, to a standalone GDS, to a subsidiary of Galileo then Travelport. But it is still going strong, with a large and loyal travel agent user base, so there are no plans to retire this GDS.

What does Apollo do for hotels?

Apollo is best known as an airline GDS. So what can it offer hotels? Well, first and foremost, travel agents almost always need to book accommodation alongside flights, so hotels are wise to have a presence wherever flights are being booked.

But on top of that, Apollo offers a number of opportunities to hotels.

Robust business travel integrations

Apollo makes your hotel accessible to corporate travel agents and companies, helping you to win valuable bookings from business travellers. It offers a simple way to target high-value corporate clients through established travel management networks.

Enhanced multi-channel distribution

A GDS like Apollo can sit alongside other sales channels, such as OTAs, metasearch and direct bookings, to help you expand and diversify your reach to travel agents, tour operators and online booking platforms. These can all be managed in one place on a platform like SiteMinder.

Streamlined group booking support

Apollo enables travel agents to secure blocks of rooms quickly and easily. As a consequence your hotel can earn and efficiently manage more large bookings, helping you to more effectively cater to events, conferences and group travel.

Efficient upselling opportunities

The GDS grants your hotel the opportunity to upsell. Through your channel manager you can offer travel agents and their clients premium rooms, spa packages or dining options, personalising the experiences you offer while boosting your bottom line.

API flexibility for unique hotel systems

SiteMinder GDS offers API integrations to help you seamlessly connect to your existing tech and tools, such as your booking and property management systems. This allows you to update your availability, inventory, pricing and info automatically in real-time.

The advantage of connecting with Apollo GDS

When you partner with SiteMinder GDS, you seamlessly connect all three GDSs – not just Apollo/Travelport, but Sabre and Amadeus too.

SiteMinder GDS also allows information to flow freely between all your channels and tech solutions, opening up opportunities for automation to save you time and money.

Worldspan is a travel distribution company that utilises its global distribution system (GDS) to allow travel agents and other travel professionals to search, book and manage reservations on behalf of their clients.

Worldspan commands a significant market share amongst GDS vendors, so can be a significant source of bookings and revenue for travel service providers like hotels.

Does Worldspan GDS still exist?

Worldspan most certainly still exists, though it has evolved from an airline-centric platform to a more general travel booking system that handles bookings for hotels, car hire and other travel services too.

It is also now owned by Travelport, one of the three leading global GDS vendors (along with Sabre and Amadeus).

In this article we’ll take a closer look at Worldspan through the lens of a hotel looking to attract more bookings from a channel like the GDS. We’ll also answer a few key questions along the way: ‘how does Worldspan GDS work?’, ‘what are the Worldspan GDS advantages for hotels?’ and more.

Why engage a GDS partner like SiteMinder to access Wordspan?

As a key GDS vendor, Worldspan represents an incredible opportunity for a hotel to get in front of new customers, through a connectivity partner like SiteMinder.

Worldspan is used by over 16,000 travel agents, tour operators and corporate travel consultants, all of whom are looking to book accommodation for their clients. In the case of corporate travel, the resulting bookings can often fill mid-week lulls for your hotel, and can be large, long, low effort and high value.

By gaining access to Worldspan via a connectivity partner like SiteMinder GDS, you gain access to this valuable source of potential bookings.

What are the benefits of Worldspan for hotels?

Why offer hotel inventory through Worldspan? This GDS vendor offers a few unique benefits, including:

• Travelport integration: Worldspan is owned by Travelport, which is one of the three biggest GDS vendors. Any hotel listed on Worldspan is also automatically listed on the two other platforms that Travelport owns: Galileo and Apollo.
• Huge reach: Worldspan is used by tens of thousands of travel agents in 180 different countries.
• Higher value bookings: The corporate travel booked through Worldspan can be less price-sensitive than leisure travel, and mid-week bookings are more likely.

Gain access to every major GDS vendor with SiteMinder

Why limit yourself to Worldspan? With the help of SiteMinder GDS, you can connect your hotel to all of the major vendors – Travelport, Sabre and Amadeus – to generate more visibility, bookings and revenue than ever before.

Learn more

The evolution of Worldspan GDS software

Worldspan was created in 1990 as a joint venture between Delta Air Lines, Northwest Airlines and TWA. The idea was to build on the success of TWA PARS, which became the first travel agency-accessible GDS way back in 1976. Worldspan GDS was designed to grant even easier airline ticket access to travel agents from around the world than its predecessor did.

It proved an instant success, and was eventually sold by its owner airlines in 2003, and again in 2007, ultimately landing in Travelport’s hands.
Since 2007 Worldspan has expanded to offer more than just airline tickets. Travel agents can now book hotel rooms, and any hotel listed on Worldspan is also listed on Travelport’s other platforms, such as Apollo and Galileo (which has historically been more hotel-oriented).

Worldspan GDS: How does it work?

As a hotel, you don’t connect or deal directly with Worldspan. You must work with a connectivity partner, such as SiteMinder GDS, to gain access and list your hotel on the various vendors that offer inventory to travel professionals that use the GDS.

With that in mind, here are some basics on how Worldspan works from the point of view of a hotel.

Real-time hotel inventory

Working through a solution such as SiteMinder’s channel manager, you can update the inventory, rates and availability you offer through Worldspan in real time. To take full advantage, you should choose a connectivity partner that fully integrates with your PMS and other key systems to automate the process of updating your offerings.

Seamless booking and confirmation processes

On the travel agent end of Worldspan, the booking process is seamless. Once a room is selected, the system automatically generates a booking confirmation that includes details like check-in/check-out dates, room type, rates and cancellation policies. On the hotel side, you need to ensure that your policies and rate plans (refundable, non-refundable, packages) are clear and correctly configured.

Corporate travel management tools

Worldspan allows hotels to cater to corporate travellers, which can form a particularly lucrative segment for your business. Using SiteMinder GDS you can offer better corporate rates and offer business-friendly perks like flexible cancellation terms, late check-out options, and workspace-friendly rooms, then restrict these deals to authorised travel agencies or corporate clients.

Maximising visibility through global reach

As a Travelport vendor, Worldspan boasts incredible reach. The network is used by tens of thousands of travel agents spanning nearly every country on earth. And when you connect to Worldspan/Travelport through SiteMinder GDS, you also secure connections with the world’s largest GDS vendors: Amadeus and Sabre.

“With SiteMinder’s platform, we can reach more points of sale and boost our presence in key markets. We are more efficient and we can now reach more locations while taking the same steps.”

Javier Aranda,

E-commerce Senior Manager

Palladium Hotel Group

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How Worldspan GDS works with hotel systems

By connecting to Worldspan through a connectivity partner like SiteMinder, you’ll also have access to a whole ecosystems of solutions including PMS integration.This will allow much of the inventory management and admin to be automated: you can update your pricing and availability across all your distribution channels in real time, rather than one by one, and any bookings made are automatically updated in the relevant systems.

SiteMinder GDS also gives you connectivity to all major GDS vendors – not just Travelport/Worldspan, but Sabre and Amadeus too.

Travelport GDS is a global distribution system vendor that connects travel service providers (hotels, airlines, car hire companies) with travel agents who book these services on behalf of their clients.

Travelport is one of the industry’s most renowned GDS companies, along with other examples such as Sabre and Amadeus.

What does Travelport GDS do?

It’s perhaps most accurate to say that it’s a company that owns and runs three separate GDS platforms – Galileo, Apollo and Worldspan – which it acquired at various points throughout its history. These platforms still exist as separate entities but are overseen by Travelport.

In this guide we’ll look at Travelport through the lens of a hotel looking to learn more about GDSs, how they work, and how hotels can capitalise on the distribution opportunity via connections such as SiteMinder.

Why hotels should be aware of Travelport GDS

Travelport offers a couple of unique differentiators that can make it valuable for hotels looking to take advantage of the opportunities presented by a GDS.

Latest initiatives and financial milestones

Travelport has made significant investments in innovation and technical infrastructure. This demonstrates the company’s commitment to staying at the leading edge of a very competitive GDS market, ensuring a secure, robust and future-ready platform.

Advancements in modern retailing and New Distribution Capability (NDC) solutions

NDC is a technology standard that modernises how travel products and services are distributed and purchased. It lets you interact with travel agents through a richer, more dynamic interface, and allows for personalised offers, real-time inventory updates, and greater flexibility in packaging up your hotel services.

Gain access to every major GDS network with SiteMinder

With the help of SiteMinder, you can connect your hotel to all the industry’s major GDS vendors – Travelport, Sabre and Amadeus – to generate more visibility, bookings and revenue than ever before.

Learn more

Travelport GDS frequently asked questions

New to Travelport GDS? Let’s answer some quick-fire questions to give you a sense of what this GDS company is all about.

Who owns Travelport GDS?

In 2019 ownership of Travelport went from public to private, when it was acquired by Siris Capital Group and Evergreen Coast Capital for $4.4 billion.

What is the history of Travelport GDS?

Travelport GDS’s history began in 2001, when the company was formed by Cendant Corporation after it acquired Galileo GDS and CheapTickets. A wealth of acquisitions followed in the subsequent years, most notably Worldspan in 2007.

After an IPO in 2014, Travelport became a publicly traded company, but as mentioned above, it returned to private hands in 2019.

What is the market share of Travelport GDS?

Travelport’s GDS market share sits at around 22%, after Amadeus at 40% (the market leader in Europe) and Sabre at 35% (the leader in the US and Asia).

Who uses Travelport GDS software?

Through its three GDS platforms, Galileo, Apollo and Worldspan, Travelport is used by a diverse range of travel agents to access and book services from providers such as hotels or airlines.. Galileo is more hotel-centric, while Worldspan and Apollo have historically focused more on airlines.

What does Travelport GDS do for hotels?

As a leading GDS vendor, Travelport operates a large online network by which hotels can be found and booked by global travel agencies. The GDS can be a game-changing channel for hotel groups and chains that are looking to compete globally and expand their reach.

What makes Travelport stand out? Travelport GDS connects with a vast network of 68,000 travel agencies across the globe, equating to over 250,000 individual agents. This extensive reach can significantly increase your hotel’s visibility in international markets.

Advanced personalisation and retailing tools

With its modern retailing and NDC capabilities, Travelport makes it easy for your hotel to offer personalised room rates, promotions and bundled packages. This allows you to more precisely target specific travel segments, such as luxury, corporate or group travellers.

Seamless integration with distribution channels

Travelport’s platform is available to connect to by the industry’s leading distributors and property management systems. This ensures real-time updates on room availability, pricing and bookings across all channels, helping hotels maximise revenue and minimise double bookings.

“We used to have to block a few rooms in the busy season to make sure that there were no double bookings. Thanks to SiteMinder, I can sell every last room without worrying about this because it automatically rejects new bookings once the rooms are sold out.”

Tini Diekmann,

Sales and Revenue Manager

Hotel Oderberger Berlin

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How Travelport GDS works with a hotel’s tech stack

A lot of hotels are hesitant to add yet another distribution channel on top of what might already be a large pile.

But adding the GDS to your strategy isn’t any extra work if you’re already investing in a cutting-edge tech stack. For instance, a platform like SiteMinder, with a superior channel manager and seamless PMS integrations, much of the maintenance and admin can be automated. You can update pricing and availability across all your channels in a few clicks, and new bookings are automatically loaded into the relevant systems.

SiteMinder GDS seamlessly connects all major GDSs – not just Travelport, but Sabre and Amadeus too – into your tech stack, allowing information to flow freely between all your platforms and tools, opening up endless opportunities for automation.

Sabre is a travel distribution company that utilises the GDS to allow travel agents and corporations to search, book and manage reservations for flights, hotels and car rentals.

What does Sabre GDS stand for? The name is actually one long acronym: Sabre stands for “Semi-Automated Business Research Environment”, and GDS stands for “Global Distribution System”. Created back in the 1950s, the GDS was the first technology of its kind.

What does Sabre GDS do?

Sabre uses the global distribution system (GDS) – a key hotel distribution channel – to connect travel agents with travel service providers such as airlines, hotels, or car rental companies.

Sabre allows GDS users real-time access to travel inventory, so they can efficiently search, compare and book travel services for their clients. By utilising large amounts of travel data, it streamlines the booking process and allows both agents and hotels to work more efficiently.

In this blog we’ll explore how hotels can capitalise on the opportunities that the GDS and a vendor like Sabre represent.

The impact of Sabre GDS for hotels

Having visibility on the Sabre GDS marketplace via a connectivity partner such as SiteMinder will help you register on the radar of 400,000 travel agencies in 160 different countries. These agencies serve millions of traveller clients looking for accommodation and travel packages.

A presence on the GDS can earn you more bookings and drive more revenue. It also does this in the most efficient of ways, because travel agents tend to be easier and more efficient to deal with than individual guests – they ask fewer questions, and complete the bookings themselves.

It also grants your hotel access to the valuable corporate travel sector, which predominantly uses GDS platforms like Sabre to make a booking. The guests won through this channel also tend to spend more, stay longer and are more likely to book mid-week.

Gain easy access to the GDS with SiteMinder

With the help of SiteMinder, you can connect your hotel seamlessly to all the main GDS vendors to generate more visibility, bookings and revenue than ever before.

Learn more

History and development of Sabre GDS

The history of Sabre began in the 1950s, when the bookings team at American Airlines was struggling to keep up with fast-increasing passenger volumes. The process was totally manual, and it would take an average of 90 minutes for a worker to book a single seat.

While an electromechanical computer was introduced in 1952, a year later, after a chance meeting between an IBM salesperson and the president of American Airlines, the idea for a more automated system came about.

Sabre GDS finally became operational in 1960. It was initially used exclusively within American Airlines, but in 1976 access was granted to travel agents too, leading to the GDS marketplace used by travel professionals and service providers today.

Is Sabre GDS better than Amadeus GDS?

Both Sabre and Amadeus have a strong GDS network, allowing the inventory of hotels to be found and booked by thousands of travel agencies worldwide.

With SiteMinder GDS however, you’ll have a seamless distribution experience that includes Sabre and Amadeus, including being able to manage the GDS channel alongside all other distribution channels such as OTAs.

How to take advantage of the Sabre GDS platform

There are a few key steps involved in making the most of Sabre and other GDS companies.

Step 1: Access the GDS

To get a simple experience while also maximising your exposure, you can use an intermediary like SiteMinder GDS (which can also connect you to Amadeus and Travelport). At registration you’ll be assigned a unique identifier – such as a Chain Code – for your property.

Step 2: Configure property profiles and inventory

Load your listing information into SiteMinder’s system: your room types, amenities, rates and policies. You can upload and manage real-time inventory across multiple properties to ensure that availability and pricing are consistent.

Step 3: Optimise rate and channel management

Use SiteMinder to synchronise rates across the GDS and all of your other distribution channels. Use dynamic pricing strategies to stay competitive and maximise your bookings and revenue.

Step 4: Monitor booking trends and performance

Use the detailed analytics and reporting functionalities of SiteMinder to monitor the performance of your hotel and identify trends. Use these insights to adjust your marketing and pricing strategies for better results.

“SiteMinder has also improved their solutions by providing business analytic tools. It works effectively and efficiently, and when market demand fluctuates we are able to change our pricing strategy in a timely manner, to optimise the business opportunity.”

Annie Hong,

Revenue and Reservations Manager

The RuMa Hotel and Residences

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Benefits of using Sabre GDS for groups and chains

Being visible to travel bookers on the Sabre GDS marketplace can be particularly valuable for hotel groups and chains, as it can be an efficient way to fill your rooms, especially during mid-week and low season lulls, thanks to its popularity with the corporate travel segment.

The benefits that can come from being distributed on Sabre GDS include:

Drive revenue with analytics

You’ll have a valuable source of pricing and booking data via your channel manager. You can use it to inform your dynamic pricing strategies, and to identify new revenue opportunities, such as demographics that you may not have identified or targeted before. You can also leverage promotional tools and offer special rates to attract corporate and group bookings

Scale to reach new markets

The ‘G’ in GDS stands for global for a reason, and with hundreds of thousands of users spread across 160 different countries, Sabre caters to a truly global audience, allowing your hotel group or chain to reach people from around the world, or more effectively enter new geographic markets.

Streamline operations through seamless integration

By managing GDS connections all from place and integrating them with your property management system (PMS) using SiteMinder, you can update your pricing and availability across all your distribution channels in real time, while streamlining and simplifying your internal operations.

Amadeus GDS is one of the hospitality industry’s most popular global distribution system vendors. It provides a platform for hotels and travel companies to advertise their offerings to a broad marketplace that is accessed by travel agents. With connections to 400+ airlines and 50+ rail, cruise and ferry operators, Amadeus is a gateway to new revenue opportunities.

What is Amadeus GDS used for?

Amadeus GDS is used for tapping into a huge network where travel supply and demand intersect. For hotels, it’s a chance to have their inventory accessed by thousands of traditional travel agents, tour operators, or package sellers. 

Who owns Amadeus GDS? 

Amadeus GDS is owned by the Amadeus IT Group. They are headquartered in Madrid, Spain, while the central database is located in Germany. How old is Amadeus GDS? Well, the company was founded in 1987 and became the industry’s number one global distributor of travel inventory by 1998.

How many hotels are available via Amadeus GDS?

Amadeus positions itself as having more than one million hotel properties connected to its travel platform. It also states that it generates over 450 million bookings per year.

This blog will take a deep-dive into the importance of Amadeus for your hotel, including what it can achieve and how you can make the most of it as part of your distribution and revenue strategies.

Why is a GDS provider like Amadeus important?

GDS’ vendors like Amadeus provide an important way for large hotels or groups to reach a previously out of reach number of travellers around the world. 

The GDS is particularly useful for connecting with corporate travel programs and winning business transient bookings. High-value guests and corporations will engage companies connected to the GDS to book not only accommodation but sometimes entire travel packages. 

On top of this is the incentive of meetings and events being booked at your hotel, since this is a large part of the corporate travel market, and becoming a preferred hotel for this type of business will lead to financial stability.

Ultimately, being accessible on the GDS via Amadeus’ marketplace is a powerful way to diversify your distribution and add to your strategy for generating revenue and maximising revenue. Let’s take a look at the full range of benefits in the next section.

Succeed easily on the GDS with the best distribution solution

Make the most of global distribution systems with SiteMinder’s leading hotel platform.

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Amadeus GDS meaning for hotel distribution and revenue management

By utilising a connectivity partner like SiteMinder to have a presence on Amadeus and other GDS vendors, your hotel can enjoy a significant boost to both bookings and profit.

A successful strategy depends on diversification, value-added sales, and an ability to capitalise on the right opportunities at the right time.

With a channel like the GDS you’ll see at least five key outcomes:

• Access to high-value travellers that includes those who book mid-week and spend more: This will allow you to combat traditional seasonality and help you maximise average daily rate (ADR) as well as boost the profit from every individual booking.

• The opportunity to negotiate for exclusive rates and agreements: This will help deliver you certainty around your future occupancy and revenue, giving you more accurate forecasts and a strong foundation from which you can optimise your revenue management strategy.

• A chance to become a preferred hotel partner with global businesses: This brings the advantage of a regular flow of bookings that you can rely on yearly or even monthly, and allow you to maximise the value of your loyalty program too.

• The ability to host more meetings and events: This will drive up your total revenue, improving your cash flow and potentially boosting your profit if you can minimise your expenses. It’s also a good way to improve your hotel’s overall reputation.
• Visibility from leading travel retailers such as travel agents, tour operators, airlines, cruise lines, and more: This gives you global exposure to virtually every corner of the globe, allowing you to connect with guests you would otherwise never be able to reach.

Amadeus GDS cost, software integration, and training

Some key details that will be important to know if you’re planning to utilise Amadeus at your hotel are things like how much it will cost you, what kind of integration is needed with your software, and whether training, courses, or certification will be required and/or provided.

Let’s see if we can get to the bottom of all of these.

Cost

How much does Amadeus GDS cost? Unfortunately, we can’t provide a definitive cost for using Amadeus at your hotel. What you pay to use the service will depend on how you connect to the GDS. Research is always important, so you gain an understanding of what will be the best investment for your property. If you’re interested in how SiteMinder can help you get connected, enquire now.

Software integration

Typically, you’ll need property management system and channel manager integration to allow your real-time rates and availability to be seamlessly communicated to the GDS.

A connection provider like SiteMinder can really help make this whole process painless, thanks to its superior connectivity and partner ecosystem.

Training

If you’re using a connectivity partner, you won’t need to be trained on Amadeus, but rather the platform you have invested in to manage your distribution, In the case of SiteMinder, full onboarding and support is provided to customers.

“The channel manager has been invaluable as we expanded from three to 11 channels. It made the process seamless.”

Ahmad Zainal Arifin,

Revenue & Front Office Manager

Grün Resorts

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How to choose between Amadeus GDS pricing and other options

The fact is that you don’t have to choose at all. Instead, you can connect multiple GDS channels at once through a single connection.

How? With SiteMinder GDS, one platform to seamlessly connect and manage all leading GDS vendors. Let us tell you more…

Event-driven travel is undeniably booming, with its influence seen in hotel occupancy and room rates. As Allied Market Research reports, the global events industry is projected to reach US$2 trillion by 2032 – nearly doubling its 2019 size of US$1.1 trillion – suggesting that events are set to become an even more important revenue source for the hospitality industry.

While events have long been a reliable driver of hotel bookings, their growing importance in the hospitality industry is now being driven by shifting dynamics of supply and demand. As Fabian Bartnick, Founder of revenue management solutions Infinito and PerfectCheck, points out: “Everybody is now looking to monetise events … and someone is controlling their supply.” In other words, key players – be it governments, airlines or event organisers – now play a crucial role in deciding when, where and how events happen and are made available, often creating scarcity amid growing demand.

Citing the Singapore leg of Taylor Swift’s Eras Tour as an example of controlled scarcity, Bartnick explains how the local government effectively controlled the supply of Swift’s concert in Southeast Asia by securing an exclusive contract with the artist, creating a unique market where the event’s limited availability enabled other business sectors to charge higher prices.

“You and I might think $700 for a ticket is crazy,” says Bartnick. “But if you are a Swifty living in Thailand or the Philippines and have the chance to see her in your backyard, you’re going. So, the entire spectrum of revenue management that is happening [for events] has widened from just ticket sales. Airlines and hotels have capitalised on the trend.”

Changing attitudes to travel

The rise of event travel is also closely linked to the influx of travellers arriving en masse at these events, as seen with Swift’s tour. Bartnick notes that this shift points to a deeper change in attitudes towards travel, where consumers are increasingly prioritising life-enriching experiences.

“After Covid, there was a fundamental shift in what it actually means to have a certain kind of freedom, to have a certain ability to travel, see the world and do something,” he explains.

Additionally, with travel becoming more accessible, more people are choosing to travel for events simply because they now can. Pablo Torres, hospitality consultant and founder of Torres Consulting, explains: “It’s not just that more events are happening. It’s also because more people can now afford to attend them.”

Maximising demand through dynamic pricing

The control of event supply by a handful of key players, combined with a public more eager to travel than ever, has pushed hotels to turn to technology to capture this demand effectively. Revenue management solutions offering market intelligence have been indispensable, and the need is clear; hotels must rely on tools that allow them to keep track of demand round-the-clock, especially for events attracting a more global audience.

“No human, regardless of their experience or skill, can think faster than a machine,” says Torres. “There are tools on the market that already show, for example, the increase in searches and flights to your destination, demand for bookings and the events you might have in your city. You could do that manually and spend the entire day compiling the information, or you can press a button and have a dashboard on your screen and then decide.”

With this information, innovations in hotel tech have given properties the confidence to venture into dynamic pricing, a strategy in which hotels adjust room rates daily or within the day based on real-time demand, allowing them to maximise occupancy and revenue during events. This strategy has become ubiquitous across industries – from airlines to delivery apps – and, as Klaus Kohlmayr, Chief Evangelist and Development Officer at IDeaS, suggests, it’s high time that hotel revenue managers embrace it fully, now that consumers are more familiar with the concept. Indeed, SiteMinder’s Changing Traveller Report 2025 indicates that more than 6-in-10 travellers globally agree that hotels should be able to adjust their rates during peak demand periods.

“Depending on the type of hotel, you could see measurable revenue uplift just by adopting dynamic pricing,” Kohlmayr explains. “From a consumer standpoint, dynamic pricing allows you to pay a lower rate when demand is low, [in the same way] that you accept paying a higher rate when there is high demand. Consumers have been educated on that and they understand that [this strategy] happens in businesses all over the world.”

Avoiding the pitfalls of price gouging

But despite the revenue-generating advantages that dynamic pricing offers, it often attracts scrutiny. Certain ride-sharing services have come under fire for price surges during public emergencies, while ticketing companies have faced backlash for dramatically inflating prices in response to high-demand events in recent months. These instances have caused the line between fair price adjustments and unethical price gouging to blur.

Shannon Knapp, Founder and Director of hotel consultancy SKNapp Consulting, says: “Dynamic pricing is getting an unfair bad rap. A fundamental flaw in retail industry applications of dynamic pricing or demand-based pricing is when they don’t institute a cap or a ‘ceiling’ price point the way we do in hotels, so as to prevent prices shooting up to eleventy jillion dollars when Taylor Swift or Oasis announces dates. The best hotel revenue management systems have configurable ceiling settings to prevent this.”

Knapp adds: “When it comes to dynamic pricing, revenue managers need to remember: price gouging is exploitative and takes advantage of disadvantage, especially during crises. Whereas price optimisation adjusts rates in response to high-demand entertainment events with a ceiling rate configured to ensure responsible application.”

This highlights the need for a thoughtful and data-based approach to pricing, rather than simply reacting to fluctuating demand. Price adjustments should not only respond to market conditions but also consider how guests perceive the fairness and value of the rates offered. In short, dynamic pricing isn’t just about setting prices.

“Unfortunately, the skill set that we have in the industry thinks that dynamic pricing is like playing yo-yo by letting prices go up and down,” shares Bartnick. “Dynamic pricing is a tactical lever with many facets at play. We need to understand how our rates impact pricing power, and our sales and marketing efforts.”

Value-driven strategy

Bartnick adds that the ‘lifetime value of a customer’ must also be factored in when carrying out dynamic pricing for events, keeping in mind loyal, repeat customers and even guests from account-based clients. Balancing dynamic pricing for event customers with these long-term relationships allows hotels to capture immediate revenue without risking future business from high-value guests.

Importantly, at the core of dynamic pricing is the value hotels can offer to guests beyond the room. While revenue managers may have the flexibility to adjust their rates once significant demand from events is detected, their pricing strategies should be paired with meaningful offerings that provide real value for money.

Torres explains, “If your only offer is the same room that cost 20 times less the day before, most customers will find it unfair. Why don’t you include added value? You can create a package with the concert organisers, include transfers to the venue where the event is taking place or include breakfast. Add value in your pricing that guests will find meaningful, so they feel they’re getting a fair price.”

Agility at a time of uncertainty

The rise of event travel signals a future that will only see more demand-driving trends impacting hotels, now that “the macroeconomic factors for hospitality and tourism are very positive”, Kohlmayr points out. “There are a hundred million people every year that are entering the middle class. If you’re in the hotel business, you have to think about the longer term opportunities to tap into that.” This aligns with findings from SiteMinder’s Changing Traveller Report 2025, which reveals that 72% of travellers globally will be travelling internationally in 2025, and that almost all (92%) plan to spend at least the same amount or more on their accommodation.

Nonetheless, as travel becomes even more dynamic, the industry is expected to operate in an increasingly uncertain environment. In this regard, Bartnick emphasises that revenue managers have to be more comfortable with the uncertainty brought by emerging travel trends.

And, it all starts with agility.

“Agility is the name of the game. We now have a game where we don’t really know who’s playing or what the rules are. Airlines have become really good at controlling supply of flights, much like how the Singaporean Government managed to control Taylor Swift’s tour location. In many instances, hotels will be at the receiving end of these shifts. Some factors are outside your power, but if they happen to be coming your way, then you have to be fast enough to monetise,” he says. 

Revenue managers must then be more reflective about their strategies, particularly for unpredictable, high-demand events. Rather than relying solely on historical data or going by a rigid ‘wait and see’ approach, changing pricing decisions when it’s too late, they need to set expectations even before they set their revenue strategies and regularly re-evaluate their decisions.

“We’re not looking at cause and effect at the moment when setting dynamic pricing strategies,” notes Bartnick. “We don’t think ahead – that if I throw a ball at a certain velocity, it’ll come back in a specific spot.”

He adds, “That’s why we need to do [away with] that fundamental, rigid mindset in revenue management and become more agile, more experimental. Nothing is created in the comfort zone. Revenue management itself is a field of experimentation.”

Pricing intelligence, also known as rate intelligence, is a way for hotels to optimise their pricing and profitability. It’s an essential part of a successful revenue management strategy and is implemented via the use of data and dynamic pricing tools.

Pricing intelligence relies on data such as market trends, real-time insights, local competitor rates, and customer behaviour patterns.

Hoteliers can use this data to quickly analyse conditions and make informed pricing decisions, to help drive more bookings and increase revenue.

This blog will cover everything you need to know about pricing intelligence and how to implement it at your hotel.

What is pricing intelligence software?

Pricing intelligence software is a tool that enables hoteliers to optimise their pricing strategies by improving efficiency and highlighting opportunities to increase revenue.

Pricing intelligence software makes it easy to track and analyse key market insights, allowing hoteliers to list their inventory at an optimal price – one that secures reservations for the maximum value possible.

It provides a great return on investment for hoteliers because it enables them to implement dynamic pricing – a crucial strategy for getting ahead of the competition and maximising the revenue from every individual booking.

Some ways your hotel will benefit from using pricing intelligence software include:

• Knowing the market demand for your hotel in advance
• Optimising your room rates
• Accelerating the decision-making process
• Saving time and effort on price monitoring
• Understanding where you stand with competitors

Greater insight, more revenue, less work

What if you could use data to boost your hotel's revenue while also reducing your workload? Our smart hotel platform helps you do exactly that.

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Why is it important to use pricing intelligence tools?

Pricing intelligence tools are important to use if you want your hotel to remain competitive and profitable in a modern travel market.

They are vital for providing valuable data and in-depth analysis in an easily digestible way, which allows tactical decisions to be made accurately and quickly.

Here’s a list of eight important reasons for a hotel to be using pricing intelligence tools:

1.Understand the demand for your rooms

You can see at a glance when your hotel rooms are in highest demand, and when you typically experience less bookings. This information allows you to create a hotel room pricing strategy to maximise your profits year-round.

2. Don’t fall behind your competitors

Ultimately, the main purpose of a rate intelligence tool is to do just that — provide you with valuable information about what other local hotels are charging for their rooms. With this information on hand, you can make slight adjustments to your rates that may give you a competitive advantage in the market.

3. Accurate, instantaneous data

A pricing intelligence tool not only showcases the most recent information about room rates in the surrounding area, but also collects data and gives you the opportunity to generate reports. These reports will provide information about room rates and hotel room pricing trends that are taking place in your destination and across the industry.

4. Rate change notifications

Notifications serve as instant reminders when there are changing trends in the market. The best part is, you have the ability to determine your own rules for when you should be notified of these updates. This means your tool is going to work to the advantage of your specific property, allowing you to accommodate local demand and competition within your specific market.

5. Simplifies the forecasting process

Forecasting can be an overwhelming and cumbersome process, even for the most experienced hotel operator. Given this, you may opt to avoid forecasting for fear of making mistakes. With the right pricing tool however, long-range forecasting is much easier.

6. Information can be acted upon immediately

The figures you glean from your competitors will help you manage your yield as you can increase your average daily rate (ADR) and revenue per available room (RevPAR) by comparing your live minimum/maximum rates against your competitors, based on length of stay (LOS). You can access this information daily or live on request, ensuring you can always hit your targets for the month or the quarter.

7. Revenue management is simplified

With specific solutions like SiteMinder’s Insights and Dynamic Revenue Plus, the data is broken down in a way that makes it easy for hotels to use and consume, again saving time and warding off any uncertainty.

8. A pricing intelligence tool will make life easier on your channel manager

The rates you set in your channel manager need to be more or less on par with your competitors. Underselling will mean a drop in your revenue, while overselling will see a reduction in bookings. Using a pricing intelligence tool means you can easily track the rate activity of your local market, maintain parity across all your channels, and then use your discretion to make changes.

To take full advantage of your channel manager, you need to be agile and change your rates hourly if necessary, depending on what time of day, month, or year it is.

With the up-to-the-minute data you get from a pricing tool, this poses no issue for you and your revenue will always be in line with your targets. With this data behind it, your channel manager becomes an even more powerful tool.

How does hotel pricing intelligence work?

Hotel pricing intelligence works by providing accurate data in real-time and making it accessible in one place.

Instead of dealing with fragmented data, and wasting time trying to bring it together in spreadsheets, hoteliers can quickly view data reports on demand.

Speed, efficiency, and simplicity characterise pricing intelligence tools. Hoteliers are able to combine historical data with real-time insights to get a full picture of their revenue management opportunities.

A room pricing intelligence tool, such as SiteMinder’s Insights, taps into the local market while integrating with the hotel’s channel manager and property management system. It can then automate the process of unifying data and producing reports, instead of relying on a staff member to do it manually.

“Since implementing SiteMinder, our operations have undergone a remarkable transformation. SiteMinder has revolutionised our approach to channel management and proven to be the ultimate solution for our challenges with availability, inventory, and OTA management.”

Pawarisa Hirantanes,

Corporate Director

Chatrium Hotels & Residences

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What to look for in a price intelligence tool

With a number of price intelligence tools available on the market, how do you choose which one is the best investment for your hotel?

As a general guide, it can be beneficial to choose a tool that is already part of a unified platform, rather than being a standalone solution. This will improve functionality, increase data volume, and broaden the number of ways decisions can be applied.

No matter how you are choosing to implement pricing intelligence, here are a seven things to look out for:

1.Make sure you have rate visibility

It’s vital that you have easy access to your rates at all times, everywhere they are listed, in one unified platform – including on OTAs and your own website.

2. Prioritise a dynamic approach

The best tools keep you updated at all times so your pricing is never static. You need to make adjustments in real-time at the right time to maximise bookings and revenue. For example, SiteMinder’s Dynamic Revenue Plus delivers up-to-date data and live alerts, as well as pricing reccommendations that you can action immediately.

3. Focus on ROI

Often, by automating and simplifying data management, a pricing intelligence tool will generally pay for itself as well as increasing staff efficiency.

4. Ensure you’ll gain a competitive edge

While pricing should never be the only way to differentiate yourself from your competitors, with all things being equal, price plays a big part. And there’s no way to ensure that your offering is truly competitive without clear visibility into what your competitors are offering.

5. Look for in-depth reporting capabilities

Generating a report should be instantaneous, and gleaning actionable insights from it should be intuitive to enable fast decision making that can make an immediate impact on revenue.

6. Seek out accurate forecasting abilities

You need to know what to set your rates at, and when – especially during peak and off-peak periods. Real-time market data is crucial to be able to forecast demand.

7. Prioritise simplicity

Many rate management tools are too complex for your hotel’s needs. The end result is that you are never able to truly master it. Look for a tool that makes ease of use a prime selling point.

Popular price intelligence solutions

If you’re looking for some of the most popular price intelligence solutions, you don’t need to look much further than SiteMinder’s Insights.

With Insights you’ll get:

• Real-time insights
• Accurate data
• A competitive advantage
• An integrated platform
• Advanced reporting and analysis

SiteMinder’s platform also seamlessly integrates with a number of other popular revenue management systems on the market, enabling all hoteliers to have access to price intelligence solutions

For smaller properties, who want simplicity but still want to be sophisticated with their pricing, Little Hotelier’s Insights is powered by SiteMinder but designed for small hotels and accommodation providers.

A hotel receipt is a document that is issued by hotels to guests, which offers proof that the invoice for their hotel stay has been paid.

Is a hotel receipt the same as an invoice?

No, a hotel receipt is not the same as an invoice. An invoice outlines all the charges that a guest has accrued during their stay. Once the invoice is paid, a receipt is produced as proof of that payment.

In this article we’ll take a closer look at hotel receipts: what they look like, why they’re important, and how to create and manage them. 

Note: the term ‘hotel receipt’ can be used to describe receipts issues by suppliers to hotels, but in this article we’ll focus on the receipts that hotels give to guests.

What is the format of a hotel receipt?

While hotel receipt formats are more or less up to hotels, the receipt should feature the following information:

• Hotel details
• Guest details
• Stay details and itemised charges
• Fees, taxes and totals
• Payment method

If the payment was made in-person on a card, the hotel receipt may be paired with the receipt generated by the hotel’s point of sale (POS) machine.

Why customise hotel reservation receipts?

Hotel receipts offer a great opportunity to showcase your brand. By adding logos, colours and a custom thank-you message, you can remind previous guests of the fun time they had at your property long into the future, when they’re doing their taxes or sorting their paperwork.

Hotel receipts can also be customised for functional reasons, such as formatting receipts in a way that aligns with the needs of corporate clients.

Integrate your chosen hotel invoicing and receipt tool with SiteMinder

Boasting 1350+ integrations, you can be confident that SiteMinder will seamlessly connect with the systems or apps you use to manage revenue.

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Role of hotel receipts in financial processes

The traditional billing process for a hotel is made up of four stages:

• Folio: A live document that records guest charges as they are made.

• Bill: A summary of charges for the guest to review at check out.

• Invoice: The official tax document that outlines the finalised charges.

• Receipt: The proof of payment for the invoice.

As the last step, a receipt finalises the billing process for each guest, and gives the guest the documentation they need to comply with tax laws.

How to write an itemised hotel receipt

These days most receipts are automatically created by a purpose-built hotel receipt generator or tool. But it’s good to understand how to write a hotel receipt the old fashioned way, as a backup option that you can use if your power or systems go down.

As mentioned above, a traditional hotel receipt template will feature the details of the hotel, the guest and the stay, it will itemise all the charges accrued over the course of that stay (including subtotals and taxes), and it will outline the payment method used.

Hotel receipt examples

For a clearer idea of what a receipt looks like, let’s check out some hotel receipt samples.

Hotel booking receipt sample

This free hotel receipt template is a generic option that can be used by pretty much any hotel business.

Days Inn hotel receipt

As a budget accommodation option, the hotel receipt for Days Inn (a Best Western brand) is perfectly simple and straightforward.

Best Western hotel receipt

Best Western hotel receipts are traditional hotel stay receipts that feature all the information a guest could require.

Holiday Inn hotel receipt

Holiday Inn hotel receipts (an IHG brand) offer a good example of clear branding on receipts.

How to create and manage hotel receipts efficiently

Wondering how to make a hotel receipt? The good news is that it’s easy to create hotel receipts because modern tools can automate almost the entire process.

Automating receipt generation and storage

Choose a tool that automatically generates a receipt as soon as an invoice is paid, and that places a copy of that receipt in the appropriate folder.

Managing complex payment conditions

The best billing, invoicing and receipt tools will also be capable of handling split payments, group bookings, extended stays, refunds and duplicate requests. (You’ll also need to implement operational processes to ensure these complex tasks are handled correctly.)

Leveraging hotel stay receipt data

Data from receipts can reveal how your guests prefer to pay for their stays, so you can ensure that you support the most popular payment methods. In tandem with invoices, receipts can also help you to track revenue trends, optimise your pricing, and identify new opportunities that you can capitalise on.

“SiteMinder has also improved their solutions by providing business analytic tools. It works effectively and efficiently, and when market demand fluctuates we are able to change our pricing strategy in a timely manner, to optimise the business opportunity.”

Annie Hong,

Revenue and Reservations Manager

The RuMa Hotel and Residences

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How to use technology to simplify hotel receipts

While plenty of tools automate the process of generating hotel receipts, the best will seamlessly connect to your property management and accounting systems.

Integration allows all your solutions to talk to one another, and for data to seamlessly travel around your tech stack. This opens up a world of automation, where repetitive, laborious, time-consuming tasks are done automatically. Automation can save a hotel huge amounts of time, while also minimising the opportunity for human error.

And in SiteMinder, the world’s leading hotel platform, you have a revenue and distribution tool that can open up this world of automation, by seamlessly connecting with whatever your chosen integration might be.

A hotel invoice is a document that is issued by hotels to guests, which provides a detailed record of charges incurred during their stay.

What is the difference between a hotel invoice and a receipt?

Hotel invoices and hotel receipts are slightly different documents. Once the invoice is paid by the guest, a receipt is generated as proof of that payment.

In this guide we’ll reveal everything that hotel businesses need to know about invoices: why they’re important, how and when they’re created, and how a hotel can better manage them.

What is the purpose of a hotel invoice?

The purpose of a hotel invoice is to provide your guests with a detailed record of the charges they’ve incurred during their stay. It offers transparency to guests and shows that your business is trustworthy.

And if the trip is tax-deductible, the hotel invoice also serves as the official record of the transaction if the local tax authorities ever conduct an audit of either the guest or hotel.

Why is streamlined hotel invoicing important?

Invoicing is an unavoidable part of any business’s operations (not to mention the part that ensures you get paid), so you should work to make the process of invoicing as efficient and effective as possible.

By streamlining invoicing and ensuring it is fast and accurate, you can:

• Reduce the time your staff spend on laborious admin, and increase the amount of time they spend on high value tasks like enhancing the guest experience.
• Minimise human errors through automation, to enhance both accuracy and compliance.
• Reduce waiting times for guests, and leave them with a good impression at check-out.

Integrate your chosen hotel invoicing tool with SiteMinder

Boasting 1350+ integrations, you can be confident that SiteMinder will seamlessly connect with the preferred systems or apps you use to manage revenue.

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Understanding the lifecycle of a hotel invoice

Hotel invoices form the third of four steps in the hotel payment process, which goes folio > bill > invoice > receipt.

A hotel invoice is generated from a hotel bill that the guest usually reviews at check-out. The bill is created from a hotel folio – the record of the charges that a guest accrues during their stay. Once the invoice is paid, a receipt is generated as proof of payment.

How to check a hotel booking invoice

When you generate a hotel invoice you should check it over before handing it to your guest. You should verify the guest’s details by asking their name or checking their ID, then briefly review the charges for anything that looks odd or out of place.

Who pays a hotel invoice?

Most hotel invoices are paid by the guest at check-out. But if a guest has pre-paid for the room, and not accrued any extra charges or paid for everything as they went, there may not be any payment to complete at check-out.

There’s also direct billing, where a company or organisation pays for a guest’s stay. This is a common payment option with corporate travellers and tour groups.

How to pay a hotel room invoice

In terms of how a guest pays their invoice, hotels are in total control of which methods they offer. Successful hotels always try to offer all the payment options that their target guests prefer.

Hotel invoice examples

Let’s look at a few sample hotel invoices to understand the look of a hotel room invoice template.

Hotel invoice sample

Looking for a free hotel invoice template? The following generic accommodation invoice template could be used by any type of accommodation business. It could be a hotel invoice template for a small, independent B&B, or it could even be an Expedia hotel invoice.

Marriott hotel invoice

If you want to take inspiration from a booking invoice template used by one of the big hotel chains, here’s what a Marriott hotel invoice looks like.

Hilton hotel invoice

You might also want to use Hilton’s hotel invoice format as inspiration for your own.

How to make a hotel invoice: Format fundamentals

How do I make a hotel invoice? These days most documents are created automatically by hotel invoice generators or billing tools, but it’s good to know how to create one yourself, just in case your power or systems go down. Here are the fundamentals.

What to include in an accommodation invoice

Hotel invoices should include the following information:

• Hotel details
• Guest details
• Stay details
• An itemised list of charges
• Payments and adjustments
• Subtotal, tax and gross total
• Payment terms

Customising invoices for brand identity

Invoices offer an excellent opportunity to display your hotel brand. Add logos and contact details, dress the document up in your brand colours, and place a custom thank-you message at the bottom.

Ensuring tax compliance and accuracy

Work with an accounting professional to ensure your invoices and billing systems meet all relevant tax codes and requirements.

Managing complex room invoicing scenarios

Choose an invoicing tool that can handle situations like group stays, extended stays, cancellations, split payments and bundled services like packages or events.

Streamlining hotel invoicing with technology

The best invoicing tools aren’t standalone solutions. They have the ability to integrate with the rest of your hotel software, which opens up the option of automating and streamlining the entire billing process, reducing errors in the process: a bar bill that is automatically added to a guest’s folio at the end of the evening, for example.

“SiteMinder’s channel manager has streamlined our bookings and inventory management. It’s especially improved efficiency, since it allows us to manage four properties at once by eliminating manual updates.”

Alexandra Rolton,

Strategic Sales & Key Account Manager

Brady Hotels & Apartments

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Hotel invoice data strategies

When data flows freely between your hotel software, it also grants you the ability to analyse the information generated by your invoicing software. The resulting insights can help you to track your occupancy, refine your pricing strategies, forecast revenue and identify service gaps and opportunities.

And if you’re looking for a hotel revenue and distribution tool that can maximise your use of data, by seamlessly connecting to whatever your chosen invoicing solution might be, there’s no better option than SiteMinder.

A hotel bill is a document that summarises the charges incurred by a hotel guest, and forms a record of expenses for the guest to review at the end of their stay.

A bill is generated from a hotel folio, which tracks the charges that a guest incurs throughout their stay. At check-out the folio is converted into a bill that is given to the guest for them to review. If the guest is comfortable with all the charges outlined on the bill, it is then converted into an invoice for payment. Once payment is made, a receipt is generated as proof.

Who prepares the guest bill? That’s usually done during check-out by the front desk staff, to ensure that charges can be added to the folio right up to the very end of the guest’s stay.

Is a hotel bill an invoice?

No, a hotel bill is not an invoice – but it is the document that the guest invoice is generated from. What is the difference between a hotel bill and an invoice? The bill is what the guest reviews, and if all is well, the invoice is what the guest pays.

What is direct billing in hotels?

Direct billing is where a company or organisation is billed directly for a guest’s stay, rather than billing the guest at check-out. It’s a popular option within the corporate travel and tour operator sectors.

In this guide we’ll take a closer look at hotel bills, from how they work with your other systems and processes, to how your hotel can better handle guest billing.

The importance of hotel bills in preventing disputes

Prevention is better than cure for guest billing disputes. Some simple steps can help you to avoid issues at checkout, including:

• Implementing integrated systems that ensure folio data seamlessly and automatically goes where it needs to.  
• Ensuring your staff are trained to efficiently and accurately update folios throughout a guest’s stay.
• Providing clear, itemised, easy to read bills at check-out, and running guests through all the charges.
• Offering guests multiple payment options so they can pay their preferred way.

Can you split a hotel bill?

Some hotels allow guests to split bills, others don’t. The choice is yours: it’s an option that many guests appreciate, but it can mean more work for you and your staff.

Integrate your chosen hotel billing tool with SiteMinder

Boasting 1350+ integrations, you can be confident that SiteMinder will seamlessly connect with popular hotel systems or apps that you can use to manage revenue.

Learn more

Hotel bill format: How to make a hotel room bill

How do you write a hotel bill? Generally speaking these documents are automatically generated by software, but it’s useful to know how to make a hotel bill should your power or systems ever go down.

No matter whether we’re talking a Hyatt hotel bill or a bill from a small, independent hotel, the document should feature:

• Hotel details: Business name, address, contact details.
• Guest details: Name, personal details.
• Itemised list of charges: Including room rate, food and beverage, additional services, taxes, fees, payments and adjustments.
• Notes: Offering relevant context and explanations for any of the information listed on the bill.
• Totals: Subtotal, tax and gross total.

What is a destination fee on a hotel bill?

A destination fee, also called a resort, amenity or facility fee, is a type of hotel charge meant to cover the cost of providing a wide range of extra amenities. A hotel should think carefully about charging such a fee, due to the questions it can generate from guests.

Hotel bill example

What does a guest bill look like? The hotel bill template below gives you an idea, although the look of your document will be determined by your hotel bill generator or tool.

Key principles of hotel billing management

By following these established hotel billing principles, you can minimise billing issues, protect your hotel’s reputation, and ensure that every guest leaves your property with a smile on their face.

1. Ensuring compliance and data security in hotel billing

It is absolutely essential that you follow all relevant rules and regulations to safeguard your guests’ personal and financial data and work to prevent fraud and privacy issues.

2. Enhancing guest satisfaction with transparent billing

By creating a clear, itemised bill, you reduce guest confusion and show yourself to be a trustworthy business.

3. Addressing complex billing scenarios

You need to establish accurate but easy to follow procedures for effectively managing complex billing situations like split bills, third-party billing and the use of multiple payment methods.

4. Training staff about operational excellence in billing management

Train your staff on how to create bills, explain bills and effectively handle billing objections.

5. Dealing with hotel bills for group bookings or corporate accounts

Special billing procedures will need to be established, and specialised billing software may need to be implemented, for groups and corporate clients who want to pay for multiple guests.

6. Handling recurring charges for long-term or extended stays

Implement periodic billing, say once a week or month, to ensure that long-term guests don’t accrue too many unpaid charges.

7. Leveraging technology to streamline billing processes

Implementing automated systems streamlines your billing processes, reduces human error and frees up your team to spend more time on enhancing the guest experience.

8. Using billing data for revenue growth and guest personalisation

Billing is a goldmine of guest data. By analysing it, you identify trends, optimise your pricing, and generate insights on what your guests want from their stay.

“Thanks to SiteMinder, we are now working much more efficiently. I have seen an increase in direct bookings, the revenue has increased, and it has reduced human error. Doing my job is now more enjoyable and easier.”

Kris Vanaerschot,

Chief Commercial Officer

Helios Hotels

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Benefits of an interconnected hotel billing system

What is a hotel billing system? It’s the tool that you run your billing through (and usually your folios, invoicing and receipts too). An interconnected hotel billing system, meanwhile, is one that connects seamlessly with the other tools in your hotel tech stack. This allows data to flow freely between your billing tool and all your other solutions, driving a wealth of benefits, including:

• Improved accuracy: It reduces manual errors by automatically updating guest charges and payments across your hotel as they happen.
• Faster processing: It seriously speeds up check-in and check-out for both guests and staff.
• Enhanced guest experience: It reduces errors, confusion and wait times.
• Better financial reporting: It facilitates more accurate and comprehensive revenue tracking and reporting by generating a wealth of detailed data.
• Streamlined operations: It brings together multiple services across multiple departments (room, restaurant, day spa) in a single, unified system.

And if you’re looking for the ultimate centralised experience, there’s no hotel tool quite like SiteMinder.

A hotel folio is a document that collates charges and payments incurred by a guest during their stay, and helps a hotel to accurately track these numbers. Historically the word “folio” has referred to a ledger or book of accounts, and the hotel industry is one of the few that still uses the term.

That’s the hotel folio definition, but what is the use of hotel folios? This itemised record of all the charges that a guest has incurred over the course of their stay – room, food and drinks, laundry, spa treatments – brings transparency to the dealings between a hotel and its guests.

Who manages guest folios? They’re generated by the hotel throughout the course of a guest’s stay. At the end of the stay the folio is converted into a bill that the guest reviews, then an invoice that the guest pays, and a receipt that is proof of that payment.

What is the difference between folio and invoice?

A folio is a record of charges that is updated in real time throughout a guest’s stay. An invoice is the final official document that collates all these charges.

Is a guest folio a receipt?

No, a guest folio isn’t a receipt. As mentioned above, a guest folio is a live, itemised record of charges, while a guest receipt is proof of payment for the finalised list of fees and charges.

In this guide we will take a closer look at hotel folios to understand what they are, how they work, and how your property can better manage them.

What is the purpose of a hotel folio?

Hotel folios allow properties to track the charges incurred and payments made by a guest during their stay, to ensure that the guest is billed accurately both during and at the end of their visit.

Why is hotel folio so important for billing and payment workflows?

An itemised hotel folio is critical for billing and payment processes, as it accurately tracks and organises charges, prevents discrepancies, and can seriously streamline the check-out process.

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Types of hotel folios

While the term ‘hotel folio’ is often used interchangeably with ‘guest folio’, there are other types of folios in hotel businesses too.

Guest folio

As mentioned above, this folio tracks all charges incurred and paid by a guest staying at your hotel.

Master folio

A master folio in a hotel consolidates the collective charges for a group or organisation, covering multiple guests or even multiple events.

Non-guest folio

This folio records transactions for individuals or entities using hotel services without staying overnight.

Employee folio

This folio monitors any expenses incurred by your staff.

What is included in hotel folio?

A hotel folio includes any charges that can be incurred by a guest. This can include room charges, taxes, food, drinks, tours, service fees, payments and adjustments, as well as any additional costs incurred during the guest’s stay.

Example of a guest folio in hotels

What does a hotel folio actually look like? Let’s bring a bit of clarity to the concept with a hotel folio example:

Common problems when managing hotel folios

If you’re not careful with hotel folio management, a lot can go wrong, including:

Data inaccuracies

Hotel folio errors – incorrect or missing charges, misapplied taxes – can lead to disputes and can ultimately damage the reputation of your hotel.

Folio retrieval issues

Delays or difficulties in accessing folios can slow down the check-out process, wasting the time of guests and staff alike. This can be caused by technical issues, poor collaboration between hotel departments, or a lack of worker training.

Manual processes

The more manual your folio processes, whether updating records, reconciling payments or managing disputes, the more prone they are to errors and inefficiencies.

“The collaboration with SiteMinder’s GDS platform has significantly boosted Urban Rest Group’s visibility among global travel agents and positioned it for continued success.”

Cody Walker,

Revenue Performance Director

Urban Rest

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Hotel folio management strategies

To successfully manage hotel folios you need to implement the right tech, deliver the right training and establish the right systems and processes:

Reinforce payment regulations in hotel folio management

When establishing your hotel folio systems and processes, you need to ensure that they tick all the relevant regulatory boxes, from tax compliance to consumer rights.

Train hotel staff on effective folio handling

The best hotel folio systems and procedures in the world won’t mean much if your staff aren’t trained on them. Make sure that every team member knows exactly what they need to do, and when and how they need to do it.

Leverage on hotel folio data

Once you’ve established the basics, you can maximise the value you gain from hotel folios by leveraging the data you collected. You can create more personalised guest experiences, develop more enticing loyalty programs, and invest in services that have proven most popular with guests.

Integrate folios with hotel systems

The best hotel folio management tools tend to be cloud-based and mobile optimised, so your staff can use them from anywhere.

They should also be easy to navigate, intuitive to use, and perhaps most importantly, they should integrate seamlessly with your other hotel tools, as this opens up opportunities for time-saving, error-minimising automations.

Hotel ROI means return on investment, which evaluates how much money you are getting out compared to what you put in. The aim is to generate a positive ROI, which you can then use to grow and improve the business or take out as profit. Generally recorded as a percentage, it’s a vital financial metric for hoteliers to track if they want to make sure their objectives are being met.

What is a good return on investment for a hotel?

There is no single answer to what constitutes a ‘good’ return on investment for a hotel, since it will vary significantly depending on the size and scope of the property, where it’s located, the goals of the management team, marketing efforts, features of the hotel and more.

A good ROI at your hotel will be relative to what you’re trying to achieve, what part of the business you’re measuring, and also what other opportunities are available to you. For instance, you may be focusing solely on your housekeeping for one calculation and your food and beverage department for another.

Average return on hotel investment

It’s agreed upon within the industry that 6-12% is a reasonable return on hotel investment. However, the average ROI will also depend on the factors we discussed above, including the economic conditions in different parts of the world. As long as you can improve your average return on investment each year, then your business will be on track to be comfortably profitable.

In this blog, we’ll cover what it means to build a strong ROI at your hotel and the tools you can use to maximise it.

Why is hotel return on investment important?

Hotel return on investment is important because it’s both a simple and effective metric to measure the general health of your hotel overall, or individual aspects of the business that you have invested in.

Here are some ways that using ROI at your hotel can help:

• Investment decisions: Helps you decide when to invest and what to invest in.
• Performance analysis: Allows you to understand the effectiveness of strategies and overall operational efficiency.   
• Industry benchmarking: See how you compare to local industry standards and competitors.   
• Financial planning: Gives you insights for future investment decisions and budgeting.
• Operational success: ROI will help you discover which parts of your business are thriving and which departments need to improve. To succeed overall, you can’t afford too many areas to be falling behind.

For example, if you have invested in technology to help you attract and acquire more guests, calculating ROI will let you know if the solution is performing to expectations or not. This will then influence decisions you make, such as investigating whether you are using it to its full potential or if you need to switch to a different provider.

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How to calculate ROI at your hotel

To calculate ROI at your hotel you need to identify your:

• Net profit: Calculate your hotel’s net profit by subtracting your total expenses from your total revenue.   
• Investment cost: Determine the total amount of money invested in your hotel or a specific function. For example, monthly subscription to a hotel software service.

After this, you can divide the net profit by the investment cost and multiply by 100 to get the ROI as a percentage.   

Return on investment formula

As we mentioned above, the return on investment formula is ROI = (Net Profit / Amount Invested) x 100.

An example of the ROI equation for hotels looks like this:

• A hotel generates a net profit of $100,000 on an investment of $500,000.
• ROI = (100,000 / 500,000) x 100 = 20%

This means that the hotel is generating a 20% return on the investment.

Hotel cap rate definition

A hotel cap rate, or capitalisation rate, is a key metric used to estimate the potential return on a hotel investment. It’s calculated by dividing the property’s net operating income by its current market value. This gives investors and owners a snapshot of expected yield without needing to consider financing or tax impacts.

While ROI looks at your return compared to the full investment, cap rate is more specific to property value and operational performance. It’s a useful tool when comparing multiple hotels or analysing whether to buy, hold, or sell a property.

Why you need to know about hotel cap rates

Hotel cap rates help investors and owners assess how a property stacks up in its market. Used as a comparison tool, cap rates reveal which hotels offer stronger income potential relative to their price. A lower cap rate often reflects higher buyer confidence or a more desirable location, while a higher cap rate could signal more risk or operational issues. 

That’s why understanding cap rates isn’t just about valuation, it’s about market positioning.

Cap rates also help buyers and sellers find common ground. By working backwards from a desired cap rate and known income figures, you can estimate a property’s value more realistically, streamlining negotiations and helping both parties spot a fair deal.

However, for new developments or highly unique hotels without reliable income history, cap rates may not tell the full story. In these cases, broader financial modelling or alternative valuation methods may be required.

The current hotel cap rates

Current hotel cap rates vary depending on location, asset class, and market conditions. According to CBRE’s U.S. Real Estate Market Outlook 2024, hotel cap rates averaged 8.0% in Q3 2023. This reflects how investors are balancing opportunity with risk in a post-pandemic market that remains in flux. Luxury hotels in high-demand city centres may command lower cap rates, while midscale or regional properties tend to sit higher on the scale. 

These figures aren’t static. They shift alongside broader economic indicators like interest rates, consumer confidence, and travel trends. For hotel owners and investors, tracking current hotel cap rates helps clarify whether your property is priced competitively and performing in line with the market.

Historical hotel cap rates

Looking at historical hotel cap rates helps you understand long-term trends in property valuation and investor sentiment. Over the past decade, cap rates have generally compressed in prime markets, reflecting strong competition for high-performing assets. For example, in 2010, average cap rates for full-service hotels in major cities hovered around 8%, but many have since dropped closer to 5% in the years leading up to 2020.

Tracking these shifts can help you spot timing opportunities, both for reinvestment and repositioning your hotel. They also give useful context when considering renovations or major capital improvements, especially if you’re planning for a future sale.

Hotel cap rate: Formula and calculations

The standard formula for calculating the capitalisation rate (cap rate) is:

Cap Rate (%) = (Net Operating Income / Current Market Value) × 100

Example 1:

• • Annual Revenue: $1,500,000

  • Operating Expenses: $600,000

  • NOI: $1,500,000 – $600,000 = $900,000

• Market Value: $10,000,000

Cap Rate: ($900,000 / $10,000,000) × 100 = 9%

Example 2:

• • Annual Revenue: $5,000,000

  • Operating Expenses: $2,500,000

  • NOI: $5,000,000 – $2,500,000 = $2,500,000

• Market Value: $30,000,000

Cap Rate: ($2,500,000 / $30,000,000) × 100 = 8.33%

Cap rates by city

Cap rates can differ significantly across various cities due to factors like location desirability, market demand, and economic conditions. Here are sample cap rates for select U.S. cities:

• New York City: 5.64%

• Los Angeles: 5.25%

• Chicago: 6.10%

• Houston: 6.75%

• Miami: 5.50%

• Dallas: 6.00%

• San Francisco: 5.30%

• Atlanta: 6.20%

These figures provide a general overview and can fluctuate based on specific neighbourhoods, property types, and market dynamics.

Common pitfalls to prevent negative hotel ROI

While you may be focusing on returning a positive ROI, preventing a negative hotel ROI is essentially the same thing but attacks the challenge from a different angle.

Some elements of your hotel may not be running smoothly or creating hidden problems that prevent your progress. Some of these may have easy fixes that go a long way to making your mission of a positive ROI more manageable. Examples might include:

1. High fixed costs

High costs are obviously the enemy of profit and it can be worthwhile to see if the status quo really needs to be that way. Are there areas where you can make adjustments, such as with suppliers, energy providers, or waste management that can lower your hotel’s fixed costs?

2. Ineffective pricing strategies

Pricing plays a major role in how successful you are each year when it comes to earning revenue and maximising profit. If you are consistently pricing too low, you’re leaving money on the table. Too high and you risk travellers looking elsewhere.

And if you don’t price based on supply and demand, and market fluctuations, you won’t be hitting your sweet spot regularly. Using a channel manager, booking engine, and business intelligence tool will allow you to price your rooms effectively, book more guests, and easily make adjustments to strategies.

3. Subpar staff training

If staff aren’t performing to high standards, either through poor training or poor hiring, then all aspects of your hotel are going to suffer. Operations won’t be efficient, guests won’t be happy, and revenue opportunities will be missed.

Make sure you are building a highly motivated and skilled team of staff to keep things running smoothly.

4. Overlooking market trends

There are always changes occurring in the hotel and travel markets. If you aren’t keeping your finger on the pulse and tracking real-time trends, you will certainly be missing out on chances to maximise revenue and improve your ROI in the long run.

Using insights tools and a mobile app, such as what SiteMinder provides, will help you track local markets and competitors, and get notified of any significant updates or alerts based on preferences that you set.

Hotel ROI strategies: How to maximise your hotel investment

All the talk is about how AI can help hotels improve profitability, but the good news is that there are also a lot of other ways to impact your ROI so you can achieve a positive outcome for your hotel. Here are five of the best ways to maximise it:

1. Invest in hotel software

Spending money to make money is an often employed strategy, and in the case of hotels it’s certainly necessary. However, one of the most efficient ways to do it is by using technology to support the operations and revenue management of your hotel. 

When you choose a quality provider, all parts of your business can benefit and contribute towards profitability. For example, a hotel platform like SiteMinder will help you find more guests, boost revenue, optimise pricing, enhance the guest experience, improve cash flow, analyse performance, and more.

2. Optimise revenue management

Look at how you can make more money up-front, boost revenue from each individual booking, and minimise expenses. 

Some strategies you should think about include using dynamic pricing, prioritising direct bookings, offering upsells and extras, and connecting more booking channels.

3. Enhance the guest experience

When guests are happier, they’ll spend more and also be more inclined to return to your hotel. Ultimately your profit margins and ROI will improve with satisfied guests. Work on streamlining your booking and check-in processes, providing quality communication, and implementing a rewarding loyalty program.

4. Create operational efficiency

Whether it’s through a property management system or a whole hotel tech stack, becoming efficient on both the backend and frontend of your business will have a flow-on effect on your bottom line. With more spare time on your hands, you’ll be able to focus more strongly on strategies, investments, and analysis to unlock better decision making.

5. Make informed, strategic, decisions

Use any and all data at your hotel to inform your decision making. This includes sales and marketing performance, revenue management metrics, distribution mix, direct booking metrics, staff efficiency, promotion uptake, and more.

Your hotel is a hive of data, which can often be gleaned easily from your software solution reports or senior staff, and you can use data to ensure each plan you make is more successful than the last. 

For example, by using solutions such as a channel manager and booking engine, you’ll be able to see which third-party booking sites are bringing you the most revenue and what percentage of your business is coming to you directly from your own website or other direct channels such as social media or metasearch.

“SiteMinder’s user-friendly nature is invaluable in optimizing my productivity and overall work experience, making it an indispensable asset to my daily operations. My association with SiteMinder has been nothing short of exceptional, and I am thoroughly content with the current state of the platform.”

Heather Minyard,

Director of Commercial Strategy

Smoky Mountain Resorts

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New hotel return on investment key factors

If you’re looking to open a new hotel and want to achieve a positive ROI quickly, there are a few factors that are crucial.

• Location: Where is the hotel (or where do you plan to build it)? Is this area typically popular with tourists and how much competition is surrounding your site? Try to choose somewhere that has high demand but isn’t overly saturated with accommodation options.
• Target market: You need to have a firm vision and understanding of who your hotel is for and how you plan to attract them.
• Staff: Hiring, building, and managing a team of staff can get expensive quickly if you don’t get it right. You need people who see hospitality as a career and have high standards when it comes to service.
• Operations: Plan ahead and see how you can create efficiency – including in energy usage, water usage, waste management, administration and more.
• Profit generators: What extras can you offer at the time of purchase? Which amenities do you plan to install and monetise? How can you attract revenue from people who aren’t guests at the hotel?
• Guest relationships: You need to wow guests from the very start, to build loyalty and create word-of-mouth marketing so your business can get a foothold in the market.
• Partnerships: As a new player, it won’t pay to be isolated. Try to form partnerships with other local businesses that will mutually benefit you.
• USPs: Unique selling points are things that make your property unique. Make sure you have a couple and market them strongly to encourage additional bookings and maybe even some local media coverage.
• Budgeting and forecasting: Understand how much cash you have and how much you need to make to keep the business running long-term. Set and accomplish goals that give you extra breathing room.
• Technology: This will make all the other factors easier to manage and ultimately deliver a positive ROI to your hotel. From automating distribution, bookings, and payments to simplifying revenue management and reporting, there are specialised providers which allow you to do everything at the click of a button.

With industry leading tech support, you can be sure your ROI will thrive and your hotel will remain successful longterm.

The HRS extranet allows hotels to manage bookings, rates and availability within HRS, a booking platform that offers access to 3000+ corporate travel programs.

The HRS extranet, aka HRS HotelPortal or Hotel Service Portal, is used to control a hotel’s presence on HRS. When fully integrated into a hotel’s tech stack, the HRS extranet can be accessed and controlled through a PMS or channel manager.

What does HRS stand for in hotels?

What is HRS in hospitality? It stands for Hotel Reservation Service, the accurate name of a hotel booking platform that focuses on corporate travel programs.

In this blog we’ll zoom in on the HRS extranet hotel platform, to understand what it is, how it works, and how a HRS hotel partner can get maximum value from it.

The importance of HRS in hospitality

What is HRS used for? In short, HRS has carved out a niche in the corporate travel sphere, specifically by granting its hotel partners access to thousands of corporate travel programs run by some of the world’s largest brands.

HRS also provides hotel partners with tools for marketing and payment processing. In return for this access and assistance, HRS charges a commission on every corporate booking it facilitates.

What are the benefits of HRS for hotel chains?

What is the purpose of HRS? To grant hotels access to the valuable corporate travel program market. Why might a hotel want to gain access to this market? A few reasons:

• Corporate travel is growing: Recent statistics show corporate travel has a year-on-year growth rate of 8-12%, and the value of this travel sector will reach USD $829.5 billion within the next five years.

• Business travellers fill gaps: Corporates tend to book on weekdays and through low seasons, helping a hotel to maximise occupancy.

• Travel programs provide regular business: The contractual nature of travel program partnerships means long-term relationships can be developed, which results in stays being booked more frequently, businesses being less price sensitive.

HRS can prove incredibly useful to any hotel business targeting the corporate travel set, so let’s look at how the HRS extranet can most effectively be used.

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Core functions of the HRS extranet

HRS extranet login in hand, you’re ready to make the most of the platform. But exactly what functionality does it offer? Five core functions include:

Centralised multi-property management

The HRS extranet allows your hotel group to manage multiple properties from the one place. This streamlines operations, maintains uniformity across locations, and offers consistent control over room rates, availability and booking policies.

Mobile check-in and check-out

HRS supports mobile check-in and check-out, allowing time-poor corporate travellers to bypass traditional front desk processes, improving the guest experience while reducing the workload for front desk staff.

Two-way data synchronisation

Two-way data synchronisation ensures that room rates, availability and bookings are updated in real time across all connected systems. When HRS integrates with a system like SiteMinder, every single booking channel can be automatically updated as soon as a new booking is made. 

Security and data privacy

The HRS extranet places a strong emphasis on security and data privacy. It implements robust encryption and compliance measures to safeguard both hotel and guest information. This builds trust with corporate clients while guarding your hotel against cybersecurity issues.

Automated workflow efficiency

Automated workflow tools in the HRS login extranet reduce manual processes and allow your staff to shift their focus from completing menial administrative tasks to delivering high-end corporate traveller service, while getting admin completed quicker and more accurately than ever before. You can automate reservation updates, guest data and reporting, and you can expand these automations well beyond the HRS extranet by connecting the tool to a platform like SiteMinder.

“The channel manager has been invaluable as we expanded from three to 11 channels. It made the process seamless.”

Ahmad Zainal Arifin,

Revenue & Front Office Manager

Grün Resorts

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Best practises to maximise the HRS extranet

The HRS hotel extranet is brimming with potential – it’s up to you to realise it. That’s no simple task, as the platform forces you to compete directly with a wealth of other hotels targeting the exact same customers. But by using the extranet wisely, you can increase your chances of both winning and retaining valuable corporate travel business.

Analyse data and segment corporate travel markets

The HRS extranet provides a wealth of data that you can use to identify patterns in corporate travel behaviour, which can then inform your ongoing corporate travel strategy. Segment by industry, company size or booking frequency, then tailor offers to meet the needs of certain groups.

Forecast demand from corporate travel segments

Use historical data to anticipate corporate travel demand. Forecast the busy periods for business travel to better manage inventory, adjust staffing and prepare tailored promotions that will ensure you secure corporate bookings.

Implement strategic pricing for corporate bookings

By integrating HRS with SiteMinder, you can capitalise on SiteMinder’s hotel business intelligence tool, which powers dynamic, real-time pricing strategies. Consider offering your corporate clients exclusive rates, volume discounts and flexible booking options.

Increase visibility on corporate booking platforms

By regularly updating and optimising your HRS profile through the extranet, you can ensure your hotel stands out to potential corporate customers. Highlight corporate-friendly services and amenities and participate in HRS promotional campaigns.

The best way to increase your visibility to corporate travellers? Establish a presence not just on HRS, but on every platform they use. By offering deep integration with HRS and a wealth of other corporate travel platforms, SiteMinder helps you do exactly that.

Corporate travel management is a service that organises and coordinates travel for businesses. It aims to reduce travel-related admin, improve travel efficiency, and streamline expenses.

Corporate travel programs can be managed internally, through the use of corporate travel planning tools, and potentially, with the help of a corporate travel management consulting company.

Alternatively, corporate travelling can be outsourced to one of the many global travel management companies and agencies that offer corporate travel management services.

This article will discuss everything you need to know about corporate travel management, how it revolutionises the hotel industry, and a reliable tech provider you can partner with for corporate travel management .

What is the difference between a corporate travel management company and corporate travel agencies?

What are corporate travel managers? To find out, let’s compare two of the main types: companies and agencies.

Corporate travel agencies are similar to the standard travel agencies that you might use to book a holiday: they simply handle the booking of travel-related services like flights, hotels and car rentals.

A corporate travel management company, meanwhile, offers broader strategic management of a business’s travel needs. Beyond booking flights, hotels and cars, they can help to create corporate travel policies, control travel costs, ensure traveller safety, negotiate with travel vendors, and analyse data to improve the efficiency and cost-effectiveness of a business’s travel needs into the future.

What is the biggest responsibility of corporate travel management?

One of the most important aspects of corporate travel management is maintaining traveller safety which is always paramount. The best corporate travel management companies will also ensure that company policies are complied with.

While there’s no single biggest responsibility, corporate travel management providers need to work within travel budgets and optimise travel arrangements for efficiency, comfort, and convenience.

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The value of corporate travel management

Corporate travel management is valuable for a number of reasons:

Corporate travel management helps companies control travel costs

The cost of hotels, flights and car rentals can vary significantly depending on what is booked and when it’s booked, which can potentially lead to overspend. Corporate travel management ensures the best deals are found and travel budgets are worked within. Large, international corporate travel management companies also have the power to negotiate better deals with vendors.

Corporate travel management improves travel efficiency

Efficiency gains can be made in two main ways. Booking a business trip can be time consuming, but corporate travel management can streamline the admin of corporate travel. It can also increase the efficiency of the travel itself, as good management ensures the most convenient flights and hotels are booked for every trip.

Corporate travel management enhances employee safety

A structured approach to corporate travel management enhances traveller safety by ensuring all relevant policies are complied with. Data analysis can also help with risk management.

How international corporate travel management revolutionises the hotel industry

Corporate travel management represents a potential windfall for any hotel open to targeting the business travel set.

Recent statistics reveal that US-based companies are expected to spend as much (and perhaps even more) on corporate travel than they did pre-pandemic, powered by a year-on-year growth rate of 8-12%. The value of the business travel sector will even reach USD $829.5 billion within the next five years.

Beyond the sheer size of the business travel market, corporate travellers are attractive to hotels for a number of reasons:

• They tend to book stays more frequently, and often for extended periods.
• They are less price-sensitive than leisure travellers.
• They book during weekdays, helping hotels to maximise occupancy.
• They are loyal and provide a steady stream of revenue due to their contractual nature

Corporate travel management groups, teams, companies, agencies and consultancies are the conduit through which a hotel can gain access to this valuable market. By actively targeting corporate travel managers, you can unlock a significant revenue stream for your hotels.

How corporate travel management systems adapt to changing times

Corporate travel management systems have adapted and evolved a lot in recent years. Much of this change has been in response to a few key events, including COVID and the explosion of AI and other technologies. Key adaptations include:

• Automation and AI: Corporate travel managers are increasingly using AI recommendations during the trip planning phase, and automated booking platforms and virtual assistants to streamline the booking and management of corporate trips.
• Mobile solutions: The best corporate travel management systems offer mobile apps that allow corporate travel managers and travellers to manage bookings, receive real-time updates, and access itineraries on the go.
• Risk management: Enhanced traveller tracking, safety alerts and health protocols have been implemented to address growing concerns around security and health risks, particularly post-pandemic.
• Sustainability: Many corporate travel management systems now include options for tracking and reducing the carbon footprint of travel to cater to the growing corporate responsibility movement.
• Personalisation: Corporate travel management systems are beginning to utilise traveller data to offer more personalised, tailored solutions based on individual preferences, which can improve both employee satisfaction and compliance with company policies.

What is the best corporate travel management platform for hotels?

The best corporate travel management platform for your hotel will depend on the needs and goals of your hotel business, and the specific corporate market that you’re looking to capitalise on, as certain platforms can cater to certain types of business traveller.

Traditionally, corporate travel management software is built for the businesses booking the travel, whether a company’s internal corporate travel management team, or the third-party corporate travel providers like agencies and consultancies who might book and manage travel on a business’s behalf.

But there are corporate travel management solutions designed for hotels and accommodation providers too. Corporate travel management platforms for hotels generally focus on two things: expanding the hotel’s reach in the corporate and B2B space, and crafting compelling content that convinces businesses to choose a hotel.

An example is CTM Sleep Space, a corporate travel-focused content platform that aims to enhance your hotel’s visibility in the business travel sphere. It is designed to simplify the search process for corporate travellers, while providing hotels with more exposure in this ultra-competitive market.

Corporate travel management features hotels should look for

Corporate travel management solutions can vary greatly in terms of their functionality. But there’s one feature that is critical no matter what type of corporate travel management tool you’re looking to implement: integration capability.

The corporate travel management platform you choose should be capable of integrating seamlessly into your current hotel tech stack to ensure the tool can work with all your other systems, from your property management system (PMS) to your payment processor.

SiteMinder offers an exclusive integration with CTM Sleep Space, the hotel-focused corporate travel platform. This opens up the opportunity for endless automation, where the tools take care of the menial tasks, leaving you and your staff to focus on the high value, difference-making work.

“SiteMinder’s data shows me how demand evolves, and which offers or channels are doing especially well. Having these insights makes it easier to double down on what’s working and adjust our approach on slower days.”

Jon Murphy,

Consultant Revenue Director

Kaleidoscope Collection

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How to implement corporate travel management in hotel businesses

There are three main ways you can integrate corporate travel management into your hotel operations:

1. Applying strategies for managing corporate travel effectively

Managing corporate travel efficiently and effectively requires your hotel to adopt targeted strategies that address the specific needs of business travellers, which can be very different to the needs of leisure travellers.

Firstly, you need to work to attract corporate business, and aim to build long-term relationships with corporate clients. You need to bring a corporate travel focus to your distribution strategy, and once you’ve got your foot in the door, you should encourage return business through loyalty programmes and exclusive discounts.

You might consider offering business-focused rates and perks that appeal to this segment: free and fast Wi-Fi, early check-in, dedicated workspaces, and conference rooms.

You could also train your team to better manage corporate clients, from your front desk handling complex corporate bookings, to your concierge providing business-focused recommendations to any travellers who might need them.

2. Addressing challenges of global travel management

Corporate travel management in the UK or corporate travel management in the US: wherever you are in the world, global corporate travel management can be a complex dance that presents a suite of unique challenges. Here are a few potential issues that your hotel might face while servicing this segment, and how to navigate them:

• Corporate expectations: Business customers can have higher expectations in terms of changing and cancelling bookings than leisure customers might, so you may need to offer more flexibility than you otherwise would. Corporate customers will also obviously be looking for a reward for their loyalty – and a significant rate discount can often be more than worth it for your hotel to gain access to this valuable market.
• Currencies and fluctuating exchange rates: Ensure you choose a reliable payment processing system that supports multiple currencies, and that offers you the best possible exchange rate at any given moment.
• Time zone differences: When you cater to corporate customers around the globe, it’s wise to have a team working 24/7 to ensure that every question can be answered and every request can be enacted efficiently.
• Diverse cultural attitudes: It’s critical that your staff understand the cultural differences they will encounter, and how expectations might differ from guest to guest depending on where they’re from, so that the best possible experience is always offered.

3. Integrating travel management solutions into your tech stack

As mentioned above, if you’re going to get the maximum possible return from your corporate travel management software investment, you need to ensure the solution you choose will integrate seamlessly with your current tech stack.

Check the integration capability of a prospective corporate travel management solution against your PMS, CRM, and booking engines to ensure it will form an organic addition to your current tech ecosystem.

Advantages of integrating corporate travel management software with existing hotel systems

Why is corporate travel management integration such a key piece of the puzzle? A few reasons:

• Real-time data sharing: Integrated tools talk to each other without the need for you, a human intermediary, to get involved.
• Automate workflows: With your tools talking to one another, you can automate previously manual tasks. Example: Updating corporate travel rates and availability across all your distribution channels at once, rather than editing them one by one.
• Greater accuracy: Integration not only increases efficiency, it removes the opportunity for human error from things like manual data entry.

By optimising workflows, hotels can effectively manage corporate bookings and tailor services to meet the needs of business clients. To further boost corporate bookings, consider leveraging partnerships with specialised platforms like CTM Sleep Space.

MaxiRoom is the Hotelbeds extranet. The MaxiRoom extranet allows hotels to optimise their use of the Hotelbeds platform, which in turn helps to maximise bookings.

Hotelbeds launched MaxiRoom in 2015 to offer hotels and other Hotelbeds partners a more intuitive interface to control their inventory. The wholesaler offers a range of features that helps users capitalise on Hotelbeds’ global network of B2B markets. These include a content management tool and an interactive calendar to tweak room rates and availability.

In this blog, we’ll provide a full guide to MaxiRoom, how to set yourself up for success with the Hotelbeds extranet, and why connecting to wholesalers like Hotelbeds can help boost group and corporate bookings.

What does Hotelbeds do?

Hotelbeds is a Spain-based, B2B-focused wholesale travel platform that provides a range of B2B travel solutions.

The answer to the question of “what do Hotelbeds do?” is a slightly complicated one, because the business serves a wide range of customers, including hotels, chains, tour operators and travel agencies.

But for hotels, Hotelbeds offers a way to increase the booking volumes by granting hotels access to B2B distribution channels, such as tour operators and travel agencies.

How many hotels do Hotelbeds have?

Hotelbeds states that it works with over 71,000 “travel distributors”, which includes hotels, tour operators and other travel businesses, and sells 50 million room nights every year.

Who owns Hotelbeds?

Hotelbeds is owned by the HBX Group, which calls itself “The leading B2B TravelTech ecosystem player”. The Hotelbeds group consists of Hotelbeds, bedsonline (a retail-focused equivalent to Hotelbeds) and Roiback (a property management platform).

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Why should hotels use Hotelbeds’ MaxiRoom?

The first question: why should your hotel use Hotelbeds? The answer: to increase your corporate and wholesale bookings, like those made by travel agencies, tour operators and corporate travel management companies on behalf of their customers.

Hotelbeds offers your hotel access to an unmatched network of B2B travel companies and wholesalers. It also opens up this market while having no impact whatsoever on your direct distribution channels – B2B is an entirely separate beast, and so represents an incredible opportunity for a hotel to maximise its occupancy.

The second question is simpler: why should you use Hotelbeds MaxiRoom? Because it’s the simplest way to make the most of Hotelbeds. This is especially true if you integrate MaxiRoom into your property management system (PMS) – but more on that later.

How much commission does Hotelbeds take?

The minimum commission that you’ll pay on a Hotelbeds booking is 21%. But this commission is actually paid to the travel wholesaler who made the booking, such as a travel agency. Hotelbeds’ commission is deducted from the total amount that the wholesaler pays for the room.

How to list your property on Hotelbeds

Listing your property on Hotelbeds is a simple, three step process:

Step 1: Register your property

Go to the Hotelbeds website and click ‘List your property’ in the top right hand corner. Fill out the webform, providing some basic information about your property, such as the rooms you’d like to offer through the platform and your cancellation policies (remembering there’s also a Hotelbeds cancellation policy).

Step 2: Log in to MaxiRoom

Once your property is registered, you’ll gain access to MaxiRoom, the Hotelbeds extranet. You can either log directly into the tool or integrate Hotelbeds MaxiRoom with your PMS, provided it supports that integration.

Step 3: Update rates, availability, and content

Once you’re in MaxiRoom, you can create descriptions and add pictures for your rooms, and update rates and availability across your inventory.

How to use your MaxiRoom login

Your MaxiRoom/Hotelbeds login will be emailed to you when you register your property. To log in to MaxiRoom, simply:

1. Navigate to the Hotelbeds website.
2. Click the ‘Login’ button in the top right corner.
3. Choose ‘Hotelier’s Login’ from the dropdown menu.
4. Enter your username and password, and click ‘Enter’.

“In the past, our team only had enough time to actively manage a limited number of booking channels. Thanks to the channel manager feature, we can connect to more channels while putting in less work. As a result, our online bookings rose by about 10%”

Matthias Gerber,

Co-owner

Town Hotel

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Tips to maximise the MaxiRoom extranet and gain Hotelbeds bookings

By maximising your use of MaxiRoom, you maximise your occupancy through more Hotelbeds reservations. Here are five ways to enhance your use of the tool:

1. Integrations

By integrating MaxiRoom with key tools in your hotel tech stack, particularly your property management system, you allow these tools to talk to and work with one another.

This means you can control MaxiRoom through your P. You won’t need to navigate to MaxiRoom and log in whenever you want to tweak your pricing or update your availability – you can do it all through your primary system.

In fact, when you fully integrate MaxiRoom with your PMS or channel manager, availability can be automatically updated across all your booking and distribution channels as soon as a new reservation is made.

2. Multi-property operations

If you manage multiple properties, you can use the MaxiRoom extranet as a centralised platform to streamline operations and ensure consistency across all locations. You can also consolidate data and insights from across your properties to identify trends and make better business decisions.

3. Listing optimisation

Ensure that your listings are accurate, complete and engaging, with full room descriptions, amenities lists and policies. High-quality imagery and compelling content can enhance visibility in the Hotelbeds search results and attract more bookings. Be sure to regularly update your listing to align with seasonal trends and changing traveller needs.

4. Demand forecasting

Use demand forecasting to anticipate occupancy trends and adjust your pricing accordingly. Use MaxiRoom to analyse historical data and market trends, and work to identify peak seasons, special events and other demand-influencing factors. This maximises revenue at busier times of year and maximises occupancy at quieter times of year.

5. Direct partnerships

Leverage the extensive Hotelbeds network to establish direct partnerships with key wholesalers. Collaborate with these vendors on special promotions to secure more bookings.

CPOR is a crucial metric in the hotel industry that helps measure the efficiency and profitability of a hotel’s operations. It stands for cost per occupied room, which means the expenses that are being incurred by rooms that have guests staying in them.

CPOR can be influenced by a number of factors and can often be a representation of how effective your revenue management and marketing strategies are.

What are variable costs per occupied room?

Variable costs per occupied room are costs that can fluctuate, due the number of guests in the room for example. These may include supplies, utilities, or laundry services.

This is different from fixed costs, which remain stable regardless of guest numbers, such as staff salaries, property taxes, insurance and more.

What is cost per occupied room in housekeeping?

In housekeeping, cost per occupied room has a similar meaning as it does for a hotel generally. It is used to measure the efficiency and cost-effectiveness of housekeeping operations. It calculates the average cost associated with cleaning and maintaining each occupied room.

Labour costs, supply costs, and equipment costs can all play a role in how healthy the CPOR is.

This blog will give you a full overview of CPOR at your hotel and how you can manage it effectively.

Why is cost per occupied room an important metric?

Cost per occupied room is an important metric because it can help you understand how efficient your hotel is and give you ways to improve your revenue management and optimise your profitability.

Using CPOR as a key metric enables:

• Clearer performance evaluation: CPOR provides a clear picture of your hotel’s operational health. A lower CPOR indicates that your business has a good handle on costs and resources.
• Profitability analysis: CPOR can be directly linked to your hotel’s profitability. A lower CPOR means that you are generating more revenue per occupied room, which can lead to higher profit margins.
• Effective cost management: By analysing CPOR, hotels can identify areas where costs can be reduced. This can involve optimising labour schedules, negotiating better deals with suppliers, or implementing energy-saving measures.
• Accurate benchmarking: CPOR can be compared to industry standards and competitors to assess a hotel’s performance. This allows hotels to identify areas where they need to improve and learn from best practices.
• Better decision making: CPOR can be used to inform important business decisions, such as pricing strategies, investment in new amenities, and staffing levels.

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How to calculate cost per occupied room

To calculate your cost per occupied room you’ll need to divide the total operating costs of your hotel by the number of occupied rooms during a specific period.

The result will be influenced by a number of factors, including your:

• Occupancy rate: Higher occupancy rates generally lead to lower CPOR.
• Operating costs: Efficient management of operating costs can reduce CPOR.
• Pricing strategy: Higher room rates can increase revenue and potentially lower CPOR.
• Business mix: The type of guests (e.g., leisure, corporate) can also impact CPOR.

Cost per occupied room formula

The formula for cost per occupied room is as follows:

CPOR = Total Operating Costs / Number of Occupied Rooms for your chosen time period.

For example, if your hotel has 100 rooms and was operating at 70% occupancy during the month of January, you would have 2170 rooms occupied. If your total operating costs were $200,000, your CPOR would equal:

$200,000 / 2170 = $92.17

This will allow you to evaluate how happy you are with your operating costs and make plans to optimise it.

How to optimise your hotel CPOR

To optimise and improve your hotel’s CPOR, you can look at ways at which you can reduce costs, increase occupancy, or increase revenue – preferably all of the above.

Here are some of the best ways to create a healthier hotel CPOR.

Optimise efficiency

There’s a broad range of areas where you can improve efficiency across your hotel that will impact costs, such as:

• Staffing: Ensuring the staff schedule is optimised so you don’t have too many or too few staff working at any given time.
• Processes and procedures: Make sure everyone is aware of the correct way to do daily tasks such as housekeeping, invoicing, checking guests in and out etc.
• Energy use: Power saving methods such as efficiency lighting, eco-friendly water systems, or timers on air conditioners can dramatically reduce your monthly expenses.
• Waste management: Food and beverage, linen, and cleaning are all areas where you can become more efficient, depending on guest preferences and staff effectiveness. For example, giving guests the option NOT to have their linen replaced daily or their room to be cleaned daily.

Cost reduction

Efficiency and cost reduction often go hand in hand but there are specific ways to reduce costs that don’t involve day-to-day operations. These include:

• Resource management: Negotiating better deals with suppliers or finding new suppliers can help you reduce your expenditure.
• Expense tracking: Ensure you have processes in place that allow you to accurately track costs so you know where to take action.
• Automate daily tasks: Save time and money by using automated technology systems to replace inefficient manual work.
• Inventory management: Take steps to ensure you aren’t overordering or wasting stock and supplies.

‍Revenue management

Revenue management is a huge umbrella concept that deserves its own full guide but there’s a few key areas where you can boost revenue and profit:

• Optimise pricing: Make sure you are selling your rooms at the maximum value possible at all times.
• Boost revenue per guest: Offer enticing upsell and package offers to convince each individual guest to spend a little more.
• Increase ancillary revenue: Utilise your amenities and on-site services to drive additional revenue across every booking.
• Implement loyalty programs: Loyalty programs will help you maintain a high occupancy level and reduce your cost of acquisition.
• Create partnerships: Hire the spaces of your hotel out for other businesses to hold classes, training courses, or meetings.

Guest satisfaction

Guest satisfaction can go a long way to boosting revenue and also lowering your marketing costs. 

By improving guest experiences you’ll be able to:

• Drive repeat bookings
• Generate positive reviews
• Increase spend per guest
• Benefit from word-of-mouth marketing

Creating a better reputation will ultimately allow you to charge higher rates for your hotel because guests will have more trust that they will be getting a great experience.

“At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, we are also more efficient in terms of time; we can get more work done.”

Shadi Wijaya,

Corporate Director of Revenue

The Phala Group

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Tools to help you improve CPOR 

The hotel industry has plenty of technology solutions that enable you to optimise your cost per occupied room.

Some of the best examples include:

• Property management systems: Your PMS will help you centralise your daily operations and manage tasks and guests more effectively. With automation and real-time processing, you’ll achieve more in less time and with less errors.
• Channel managers: A channel manager will optimise your distribution, allowing you to sell your entire inventory across multiple channels at the same time, with automatic real-time updates ensuring you don’t encounter double bookings and can reach more guests.
• Booking engines: Using a booking engine will allow you to take direct bookings from your own website, via social media, and via metasearch so you don’t have to pay third-party commission fees.
• Guest engagement tools: Guest engagement tools can help streamline the check-in process, build a stronger relationship, and communicate more effectively.
• Business intelligence: Business intelligence enables you to track local market conditions, be aware of your own rate parity, and analyse key performance reports to optimise revenue.
• Pricing optimisation: There are many tools that can enable pricing optimisation, including dynamic tools that give you live recommendations and alert you to demand-driving events and opportunities.

Generally, many of these solutions can be accessed by one provider, such as a smart platform like SiteMinder.

Hotel conversion is the process of turning potential customers—such as website visitors, online searchers, or inquiries—into confirmed bookings. It measures how effectively a hotel can convert interest into actual reservations. 

The process by which you do this can take many forms and this blog will take you through everything you need to know.

Why are booking conversions important?

Booking conversions are crucial for your hotel because they directly impact both your revenue and occupancy rates. When a potential guest completes a booking, it means one more room is filled, contributing to your hotel’s bottom line. High conversion rates show that your marketing efforts are working effectively to turn interest into actual stays, which is the ultimate goal for any hotel.

Moreover, focusing on booking conversions ensures that the traffic coming to your website or booking platform is fully capitalised on. Every visitor represents a potential guest, and if they leave without booking, it’s a missed opportunity for revenue. By improving your conversion rates, you can increase direct bookings, which are often more profitable since they reduce or eliminate the commission fees charged by third-party platforms.

Additionally, strong booking conversions contribute to a more predictable and stable business model. When more visitors convert to bookings, it means less reliance on aggressive discounting or last-minute offers to fill rooms, which can erode profitability. Consistent conversion rates allow you to better forecast occupancy and manage revenue strategies more effectively, leading to a healthier financial position for your hotel.

In the competitive hospitality industry, optimising booking conversions is key to staying ahead. A higher conversion rate not only means more revenue but also reflects a strong brand presence, a user-friendly booking process, and a compelling value proposition—all of which contribute to long-term success and growth for your hotel.

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How to calculate conversion rate in hotels

To calculate the conversion rate in hotels, you need to determine how effectively your hotel is turning website visitors or inquiries into confirmed bookings. Here’s a simple formula you can use:

Conversion Rate = (Number of Bookings/Number of Visitors)×100

This results in a percentage, where the higher the number, the better the conversion rate, and the better your hotel’s performance!

What is a good hotel website conversion rate?

The average hotel website conversion rate is between 1.5% – 2.5%, according to HotelTechReport. However, there are numerous tools available that can help to push these numbers even higher.

How to improve conversions on your hotel’s most important landing pages

Conversions are key not only to the success of your online marketing campaign, but also to the success of your hotel property.

But many hoteliers do not realise that specific landing pages on their hotel website are more powerful than others — such as the payment page.

In fact, travellers from across the globe are beginning to abandon their bookings on the payment page if it fails to function in the way they expect.

For instance:

• Two-thirds of travellers from the United States become apprehensive if they are redirected to a different portal to complete the payment process; and,
• About 20% of German travellers will abandon their booking if they begin to have security concerns.

Building trust and reducing abandonment

Security concerns are real and justified, as it seems there are credit card security breaches being reported nearly every day.

If you are asking your hotel guests to provide their credit card information over an online payment portal – which is becoming the industry standard – you need to provide your guests with clear and certain proof that their private financial information is safe with you.

Promote the fact that you are PCI DSS compliant, as this means that you follow the industry standards for securing and processing payments online.

Include mouthwatering benefits

Reinforce the fact that your hotel offers guests a plethora of benefits so that guests are more convinced at the payment stage.

Instead of describing basic facts about the hotel, enhance the content so that it spells out exactly what those amenities mean for your guests.

For example, your hotel might have an adults-only pool, a children’s vacation club and beach access. Instead of listing these amenities as bullet points, you could describe them like this:

• The hotel features an adults-only pool, allowing you the time you need to escape from the chaos of family time.

• Our children’s vacation club gives your precious little ones the opportunity to make memories that will last a lifetime, while you get some much-needed rest and relaxation.
• Private beach access means that you will spend your evenings strolling along the beach, soaking up the gorgeous sunset without dealing with the crowds.

Leveraging remarketing

It’s impossible to convert every site visitor into a customer, but it is possible to pull many interested visitors back to your site in order to encourage them to finalise their bookings.

Thanks to remarketing, you can target specific ads at people who have already visited your website, and increase the chances of getting them to book direct.

When they begin to see your hotel pop up during their regular internet activities, they will be more likely to come back to your website and complete their booking.

For example, if a potential guest visited your site, viewed your ‘King Suite’ room page, and left without making a booking, then you can retarget them with ads of the ‘King Suite’ on their Facebook page, and even offer them 5% off to sweeten the deal.

Your internet booking engine is the key to conversions. Make sure it is fully optimised for mobile and provides a seamless booking experience for every guest who wants to book directly.

Key hotel website conversion metrics for hoteliers

Even after you have worked hard on search engine optimisation (SEO) at your hotel, you must run periodic analysis to track improvements. But with so much data available when analysing your hotel’s website statistics, it’s easy to focus too much on just conversion rates and hotel sales figures.

Understanding the importance of each data set can be challenging when you’re trying to gain valuable insight. To help with this task, here are some important metrics – that are sometimes overlooked – to give you crucial information about your website performance.

1. Track your high traffic web pages

A good first step is to find out what your most popular website landing pages are – first impressions last! You want the highest ranking pages to be as attractive as possible, with relevant content for your prospective hotel guests and a clear call to action.

Think of your landing pages as your first job interview. If it’s interesting enough guests will check out other pages, if not you’ll lose them right there and then. If one of your most visited landing pages is your home page, make sure you provide enough information about your property such as star rating, location, property images, services offered, options to book now, and anything else that can showcase your hotel.

2. Acquire actionable data from exit pages

As important as understanding where your traffic lands on your website is, you must know at what point you’re losing traffic too. Exit page statistics are very useful in finding key areas of improvement on your website.

For instance, it’s a bad sign if travellers are exiting from a page that’s involved in your hotel’s booking process. Your website should be easy to navigate and give your guests flexibility to explore, it should also give them clear instruction and call to actions throughout your pages – leave no room for doubt.

Make sure your high ranking exit page has this covered. If the content is irrelevant or if you have any technical issues, such as broken links, review the overall online experience for this page and adjust what is necessary.

3. Maximise engagement on your website

When it comes to online traffic, focus on quality over quantity. ‘Bounce Rate’ is an essential metric to analyse your traffic quality and engagement levels.

You can measure the percentage of visits in which the user had no interaction with the page and left the website. A number of factors can affect your bounce rates, so take some time to analyse where the traffic is coming from.

If you find you’re running a hotel marketing campaign with high bounce rates, check that the landing page has relevance to your campaign, and that your audience segmentation is correct, as you may be delivering paid advertising or emails to the wrong people.

4. Zero in on your hotel’s target markets

One of the most useful pieces of information when analysing your website statistics is your ‘Audience Geographic Localisation’ report, which takes into consideration your visitors’ IP addresses.

Cross-checking this data with other metrics will give you powerful insights and could identify potential new markets to invest marketing dollars in.

Try to identify untapped markets with higher conversion rates and lower traffic rates, and target this market during your hotel’s next online campaign.

Also check for areas of your website with higher traffic and below average conversion or high bounce rates and investigate areas for improvement in this region, for example; content translation.

“If I had to describe SiteMinder in one word it would be reliability. The team loves SiteMinder because it is a tool that we can always count on as it never fails, it is very easy to use and it is a key part of our revenue management strategy.”

Raúl Amestoy,

Assitant Manager

Hotel Gran Bilbao

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The significance of hotel conversion tools

Hotel conversion tools such as a booking engine or payments solution are important for a number of reasons including:

Increased direct bookings

More direct bookings mean fewer commission fees paid to OTAs. That’s more revenue for your bottom line as well as a reduction in your hotel’s reliance on third-party booking sites, de-risking your growth strategy.

Enhanced customer experience

Conversion tools allow hotels to provide a seamless, user-friendly booking experience for their guests. With the data and extra functionality they provide, they can customise the booking process to align with their brand and meet the unique needs of their guests. This can greatly enhance the guest experience and contribute to customer loyalty.

Improved efficiency

These tools can automate many aspects of the booking process, such as sending confirmation emails, processing payments, and updating room availability in real-time. This can save hotel staff a significant amount of time and reduce the chance of errors.

Greater insights

Many hotel conversion tools come with analytics and reporting features. This allows hotels to gain valuable insights into their booking trends, customer behaviour, and overall performance. They can use this data to make more informed decisions and improve their operations.

Stronger guest relationships

By enhancing direct booking conversion rate, hotels have the opportunity to build stronger relationships with customers. Conversion tools help the business to capture important guest information during the booking process, communicate directly with the guests, and personalise their experiences based on their preferences, driving returning guests and thus revenue.

Competitive advantage

In a competitive industry like hospitality, having the tools to create a user-friendly, efficient, and well-branded online booking system can give a hotel a significant edge over competitors who don’t offer such a seamless experience.

Top hotel conversion tools hoteliers use to increase website conversions

The digital landscape of the hospitality industry is constantly evolving, and hoteliers must keep pace to ensure they maximise their online conversions. Achieving a robust conversion rate — the percentage of website visitors who become booking guests — is a high priority.

From tracking visitor behaviour and analysing user interactions, to managing online reputation and providing real-time chat support, these diverse tools can offer valuable insights and enhance the user experience.

1. Website visitor tracking tools

Website visitor tracking tools help hoteliers understand how visitors interact with their website by tracking their behaviour and actions. These insights can include information about which pages the visitor viewed, how much time they spent on each page, what they clicked on, and at what point they left the site.

These web conversion metrics can then be used to optimise the website and make it more user-friendly, thus improving the conversion rate. These tools often incorporate features for segmenting visitors based on their behaviour, which can then be used to deliver personalised content or offers.

2. Website heatmaps and behaviour analytics tools

Website heatmap tools provide visual representations of how users interact with a website. They show where users click, how far they scroll, and what they look at or ignore. They’re different to website visitor tracking tools in that they are more focused around behaviour once someone is on a page and can provide more detailed insights than most website visitor tracking tools.

This information can help hoteliers identify popular areas and elements on their website that attract user attention, as well as areas that might be causing confusion or hindrance to the user journey. Based on these insights, website design and content can be optimised to improve user experience and conversion rates.

3. Online reputation management tools

Online reputation management tools are used by hoteliers to monitor and manage their hotel’s online reputation. They track reviews and ratings across various online platforms and provide alerts for new feedback, allowing hoteliers to respond promptly to both positive and negative comments.

These tools can also provide insights into common customer complaints or praises, helping hotels to improve their services based on customer feedback. By managing their online reputation effectively, hotels can increase customer trust and improve their overall image, which can lead to higher website conversions.

4. Online web chatbot tools

Web chatbot tools provide real-time interaction between the hotel and website visitors. They can be used to answer queries, provide recommendations, and assist with the booking process, making it easier for potential guests to make a decision.

Some hotels use AI chatbots for basic queries and have human operators for more complex discussions. The immediate response and personal interaction can significantly improve the user experience and increase conversion rates.

These tools, from tracking visitor behaviour and visualising user interactions to managing online reputation and providing real-time chat support, all contribute to enhancing your hotel’s conversion rate. They provide crucial insights, personalised engagement, and improve the overall user experience on your website.

However, not every website platform will have the capability to integrate and utilise these tools to their full potential. Often, hoteliers will only discover the limitations of their chosen platform once they have already invested – which makes choosing the right partner from the start absolutely essential.

Hotel upselling is the practice of encouraging guests to purchase additional services or upgrades during their stay, beyond their initial booking. This can include offering room upgrades, additional amenities such as spa treatments or dining packages, early check-in or late check-out options, and other premium services. 

In this blog, you’ll learn all the tips you need to make upselling a success at your business.

Why is hotel upselling important?

Hotel upselling is important because it helps both your hotel and your guest get more out of their stay. For your hotel, it’s a way to boost revenue by offering guests extra services or upgrades they might enjoy – for example, a room with a better view, a relaxing spa treatment, or a special dining experience.

For guests, upselling can make their stay more enjoyable by adding those little touches that make a trip feel special. When done correctly, “upselling” is really about enhancing the overall guest experience, making sure they leave happy and eager to return. Plus, satisfied guests are more likely to leave positive reviews and come back in the future, which is great for business in the long run.

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What’s the primary goal of upselling in hotels?

If you think the primary goal of upselling is simply to increase your hotel’s revenue, you’re missing the bigger picture. The true aim of upselling should be to enhance the guest experience. By focusing on what will genuinely benefit your guests—whether that’s a room with a stunning view, a relaxing spa treatment, or a special dining package—you’ll naturally see an increase in positive reviews, guest satisfaction, and ultimately, loyalty. 

When guests feel that you’re putting their needs first, they’re more likely to return and recommend your hotel, leading to sustainable, long-term revenue growth.

How to upsell a hotel room

Upselling needs to be done with care, focusing on the guest’s experience rather than pushing for a sale. Timing, tone, and subtlety are key. Instead of making it a hard sell, think of it as making guests aware of opportunities to enhance their stay. For instance, rather than saying, “Upgrade to a room with a view for $100,” you might suggest, “For just $30 more, you could enjoy a room with a breathtaking view.”

Tailor your upselling efforts by understanding your guests’ preferences. More than 60% of consumers are willing to spend more when an additional service complements their main purchase. A good approach is to send an email before their arrival, asking about their preferences or any special requests. This not only helps in personalising their stay but also sets the stage for a well-received upsell.

Hotel upselling examples and ideas

There won’t be a shortage of options to offer guests at your hotel. Consider the following key areas where you should be upselling:

1. Food and beverage

Encourage guests to begin their stay on a relaxed footing with a drink at the bar, celebrate any special occasions with banquet deals, add fruit and chocolate or other extras to their room, or order dessert after a main meal. Always present as many options as possible so guests are making their own choice rather than just following your recommendation.

2. Spa services

If guests have taken a long flight or arrived late, invite them to add a spa package to their stay, with a massage on their first day and the opportunity to book more treatments throughout their time at your hotel.

3. Room upgrades

This shapes as the obvious tactic and it can often work when executed well. When travellers book a trip they’re saving money for the occasion. If a guest has booked a standard room, you can contact them in the days prior to their arrival and offer an upgrade. They may be surprised by the offer and the extra price will seem smaller, especially since they will have their finances in good order by this stage.

4. Special features in the room

Pay attention to who is coming to stay at your hotel. If a family has booked, it will be important for them to have a bathtub for the children. This presents a good opportunity to upsell or cross-sell a room that has this facility. Other examples might include upselling couples to rooms with a balcony or a larger bed.

5. Exclusive guest offers

Anything that helps create a more memorable experience for your guests will receive a favourable response, such as breakfast in bed, fresh flower bouquets, champagne etc. Even though the guest has to pay extra, it will be a worthwhile expense from their perspective.

6. Leisure activities

Renting and selling things to do like riding bicycles, use of the tennis courts, gym, sauna, cinema tickets, and city tours is usually a no-brainer and not hard to get guests excited about.

“We’re getting more bookings since using SiteMinder. As an added bonus, more than half of those are coming in via our own website. The setup was super easy. Our team quickly learned to navigate the new system and today, we’re operating seamlessly.”

Jan Wichmann,

Owner and Property Manager

Hotel Graf Bentinck

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How to do upselling in the hotel industry: Techniques and strategies

When it comes to upselling there are a few things you definitely should do and some you definitely shouldn’t. Keep these three tips in mind when developing your strategy:

1. Upsell throughout the guest cycle

Upselling doesn’t have to occur prior or during arrival. During the stay guests will become immersed in their experience and may be more likely to accept your offers. Even when they’re checking out you can ask them to join your loyalty program or purchase an option for their next stay.

2. Use the right hotel upselling software

By allowing you access to rich guest data and the ability to automate selling processes, your property management system (PMS) and booking engine can make effective upselling easy.

3. Educate your property’s staff

Let your staff experience everything you want them to sell so they can adequately explain it to the guest. It’s also important that they be prepared for objections or rejections. Awkward or difficult questions need to be responded to in a calm manner. If a customer rejects an offer, don’t chase the sale. Offer an alternative or raise it again at another time.

Good upselling will increase guest satisfaction and by extension provide your hotel with higher revenue and profitability.

Tripadvisor reviews are a way for travellers to share their experiences on Tripadvisor, one of the world’s largest travel websites.

Unlike online travel agencies like Expedia and Booking.com, where you need to book a stay or an experience through the site in order to leave a review, Tripadvisor is an open platform where anyone can leave a review for any hospitality business. This openness has made Tripadvisor immensely popular, with the site now featuring over one billion user reviews.

This blog will help you understand Tripadvisor reviews and how to optimise them for your hotel.

Why are Tripadvisor reviews important for your hotel?

Tripadvisor hotel reviews are important because Tripadvisor is an incredibly popular and very trusted platform. By some measures it is the world’s largest travel platform, attracting almost 500 million visitors every month.

Work hard to build a good reputation on Tripadvisor, fuelled by plenty of five star reviews, and you can secure a slice of this rather large pie. What’s more, because the platform works a little like a traveller’s version of Google, you won’t have to pay a cent to TripAdvisor for this business (unless you choose to boost your listing).

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Tripadvisor reviews: Questions and answers

Tripadvisor is a unique platform, so as a hotelier you’ll no doubt have a few questions about how it works. Let’s take a look at a few of the most important things you need to know about Tripadvisor.

How do I see reviews on Tripadvisor?

Your hotel most likely has a presence on Tripadvisor, even if you haven’t created a profile. Business profiles are automatically created to allow users to share their thoughts on any establishment. As such there are a few ways to check your reviews on Tripadvisor:

• If you have a Tripadvisor account, navigate to the Tripadvisor homepage and click on your profile picture in the top right of the page. Select ‘View Profile’ then scroll down to see your reviews.

• If you don’t have a Tripadvisor account, you can check whether your hotel has a listing with reviews by typing your hotel name here. If your hotel is listed on Tripadvisor you can claim that listing, then you can follow the steps above to find and manage your reviews.

• You can also check your hotel reviews – but not manage or reply to them – as a traveller would: by simply typing your business name into the search bar on the Tripadvisor homepage.

How long do reviews stay on TripAdvisor?

Traveller reviews stay on Tripadvisor indefinitely. But if your hotel undergoes a significant change, such as a change of ownership, reviews may be removed allowing a new owner to start fresh. Reviews may be removed in certain other circumstances too, which we take a deeper dive into below.

What happens if you report a review on Tripadvisor?

Tripadvisor has a ‘report’ function for reviews, which allows a hotel owner to flag any reviews that they feel are unfair. But Tripadvisor makes it clear that it will only remove the review if it “violates our guidelines or we determine there is something improper about it”. Simply disagreeing with a review will not see it removed. Tripadvisor has also stated that it “does not arbitrate or referee factual disputes”.

Can owners delete Tripadvisor reviews?

As mentioned above, hotel owners cannot delete Tripadvisor reviews, but you can report them. Tripadvisor then checks the review to see whether it violates the platform’s guidelines, which you can find here. Guidelines include:

• All reviews must be based on first-hand experiences
• Reviews must be completed within a year of a stay or experience
• Information contained in reviews must be relevant
• Reviews must not be biassed or manipulative

If the review is found to violate one or more of the platform’s guidelines, Tripadvisor will take it down. But if the review represents what Tripadvisor sees as a difference of opinion between hotel and guest, it will stay live.

How to get more Tripadvisor reviews

A generally accepted and followed rule is that the higher your hotel ranks on Tripadvisor, the more bookings you will get. This is because the positive social proof from peers gives travellers the confidence to book the property.

With that in mind, here are four tips to make sure your ranking on Tripadvisor is as high as it possibly can be.

1. Ask guests to leave a Tripadvisor review

TripAdvisor gives more weight to new reviews, and properties with more reviews receive a higher ranking than hotels with only a few hotel ratings.

The more 4- and 5-star reviews you can get, the faster you will rise up the rankings as you aim to be the top-rated property in your area.

Ask guests to review you at check-out or in a follow-up email after they depart. Place review information on guest receipts at the end of the stay. Include a TripAdvisor badge on your website’s guest testimonials page. 

As the saying goes – if you don’t ask you don’t get. Always make requests to guests for reviews and feedback.

2. Update your profile seasonally

Once a season, check your Tripadvisor profile. Does it list all of your amenities and include updated photos of your property? Are your hotel details up to date?

Add at least 10 high-quality photos, since these can sell the property to guests.

By keeping your profile updated, you can manage guest expectations ahead of their stay. This increases customer satisfaction.

3. Analyse your existing Tripadvisor reviews

Most hotels have a few areas that need improvement. Check your existing Tripadvisor reviews to see what guests like and what they complain about.

Then take action by planning to improve the areas where your property is not offering high value. For example, if guests mention tired towels or linen, it may be time to replace them, review your laundry service, or work with housekeeping to ensure all linens are fresh.

By improving your weak points, you can boost guest satisfaction and reduce the number of complaints that appear in the future.

4. Provide great customer service

You never know which guest is a passionate online reviewer and which one never leaves reviews. The best way to boost the number of five-star hotel reviews on TripAdvisor is to provide excellent service every day, to every guest.

Train staff in hospitality, which can increase cohesiveness and boost skills among your workers. Then recognise employees who have gone above and beyond for guests to cultivate a team that’s motivated to best serve guests. When employees are praised and rewarded for their work, they will be internally motivated to care for guests.

“People who have used numerous systems will find SiteMinder to be extremely user-friendly. Compared to the other complicated systems, it is just so simple to use. When we expand our hotel to other areas, SiteMinder will again be our first choice.”

Pichata Ritchie,

Cluster E-commerce Manager

VALA Hua Hin – Nu Chapter Hotels

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Responding to Tripadvisor reviews with examples

For hotels, one tip is more important than any other on Tripadvisor: respond to reviews.

The platform is (understandably) hesitant to delete reviews, because that might open the door to businesses manipulating listings, making themselves look better than they actually are. This in turn would hurt TripAdvisor’s reputation, as users may no longer trust the reviews they read.

Unfortunately this can work against your hotel, particularly when you feel a review is unfair, but it doesn’t explicitly violate any of TripAdvisor’s guidelines.

In these situations a response can be invaluable. Negative reviews might hurt, but they’re also an unmatched opportunity for you to show who you are as a hotel. Replying to positive reviews, meanwhile, gives you a chance to soak in the applause and show your appreciation to the customer.

Wondering how to respond to a bad review on Tripadvisor? Or how to graciously accept a good review? Here are a few tips, along with Tripadvisor management response examples.

How to reply to a positive Tripadvisor review

Good news: your hotel has earned a glowing five star review on Tripadvisor. You don’t need to reply to every positive review – the sweet spot for review response rate is 40-50%, and negative reviews should be prioritised  – but it’s wise to respond to the detailed and particularly flattering ones, as it shows the reviewer you appreciate that they took the time.

But replying to a positive review can be surprisingly tricky. Your response should be personalised to the review and reviewer, and it should be humble. Other tips include:

• Use the reviewers name, and thank them for taking the time to write a review.
• Use ‘we’ not ‘I’ to ensure that your entire team gets the credit.
• Re-emphasise the highlights featured in the review, e.g. “we’re so glad you enjoyed X!”
• Finish by inviting the guest back to encourage return business.

Replying to positive reviews: example template

“Thank you for taking the time to write a review Sean!

We are delighted that you enjoyed your stay. We’re particularly happy to hear that you had such a great night’s sleep, and that you found our staff so friendly – we think they’re great too!

We work really hard to create memorable experiences for our guests, so comments like yours are truly rewarding to hear.

We’d love to host you and your wife again, so be sure to let us know if you’re ever back in the area. Safe travels in the meantime!

– The A1 Hotel team.”

How to reply to a negative Tripadvisor review

Negative reviews will occur – it’s unavoidable in a hospitality business. What’s important is how you respond, as potential guests will read the reviews and pay close attention to your reply.

As a best practice, acknowledge and apologise for inconveniences. State how you plan to do a better job next time and try your best to resolve any grievances.

No matter what’s said in the bad review, do not get defensive or attack guests. This will drive away potential bookings. Other tips include:

• Always reply in a humble and calm tone.
• Use ‘I’ over ‘we’, as it shows an individual is taking ownership of the issue.
• Avoid generic responses – always personalise 100% of your reply to negative reviews.
• Be objective and professional – don’t let emotion cloud your judgement. It might be wise to wait 24 hours to formulate a response, as this ensures you don’t reply in the heat of the moment. You might also be wise to ask for the opinion of a third party before you reply.
• If the guest had a genuine issue during their stay, it’s critical that you take responsibility and show TripAdvisor users that you’re aware of and learning from your mistakes.
• Address any issues that the reviewer raises, explaining how you plan to improve when the feedback is fair, or offering further (and always polite) context when you feel it’s appropriate. If the review is a surprise, it may be wise to ask for more information.
• Thank the reviewer for taking the time to provide feedback, and highlight any positives they may have mentioned.
• At the end of your reply, extend an invite to the guest, as this shows you’ve taken relevant feedback on board and would appreciate a chance to prove yourself.

Replying to negative reviews: example template

“Dear Karen,

Thank you for taking the time to provide this feedback. I’m happy to hear you enjoyed our pool area, but I’m disappointed that you felt your room could’ve been cleaner on arrival.

At A1 Hotels we take cleanliness incredibly seriously. If you are willing to offer us a little more detail on the experience you had we’d greatly appreciate it. You can get in touch with me using the contact details listed below.

If you’re ever in town again, and would like to spend some time lazing by our magnificent pool, we’d love the opportunity to host you again.

Ben R, General Manager (Phone/email)”

Whatever the current strength of your hotel reviews, these tips will help you thrive in the competitive world of online booking.

The Tripadvisor owner login is a gateway for hotel owners and operators to manage their business listings on Tripadvisor. This platform allows you to update your property details, respond to guest reviews, and access valuable analytics that can help improve your hotel’s online presence.

This blog will take you through everything you need to know and how to succeed with Tripadvisor.

Why should hotels use the Tripadvisor business login?

Using the Tripadvisor business login can make a big difference in how you manage your hotel online. Here’s why it’s worth your time:

All-in-one management with the Tripadvisor Management Centre

The Tripadvisor Management Centre can become your go-to place for everything related to your property on your platform. You can update listing details, handle reviews, and see how you’re doing with a few clicks – though it’s important to remember that it’ll only handle listings that Tripadvisor has access to. It won’t help you manage listings through other OTAs, or your own, direct listings.

Good news, however: Tripadvisor integrates seamlessly with SiteMinder’s channel manager, which does tackle your listings across more than 450 OTAs and metasearch engines.

Gaining the Tripadvisor Business Advantage

With the Tripadvisor Business Advantage, you get tools to make your hotel stand out. You can:

• Promote special offers directly to guests.
• Use exclusive data to understand and target your audience better.
• Ensure your property gets prime placement on the site.

Direct bookings can benefit from Tripadvisor integration too, with one SiteMinder report ranking the following options in descending order of effectiveness:

• My hotel website
• Google or other search engines
• Tripadvisor or similar

• Offline channels
• Social media advertising
• The Billboard Effect

Using analytics for smarter decisions

Tripadvisor provides insights into guest behaviour and preferences. This information helps you make better decisions about marketing, pricing, and improving guest experiences. Tailoring your services based on these insights can lead to happier guests and more bookings. Combine this with SiteMinder’s own Competitor Pricing reports, and you have a cohesive, comprehensive suite of analytics that will arm you with the data you need to succeed.

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The impact of having a Tripadvisor business listing

Having a business listing on Tripadvisor can significantly boost your hotel’s bookings. Integrating TripAdvisor into your marketing strategy enhances customer engagement and increases online visibility. It also provides valuable guest feedback, helping you improve your services. Leveraging TripAdvisor alongside other channels can give your hotel a competitive edge in attracting more guests and enhancing your overall online presence.

Remember that basic Tripadvisor listings are free, while you can enhance your performance with some paid additions. As an OTA, it will charge a commission for each confirmed guest gained through the platform.

How to get listed on Tripadvisor

If you want to make a business page on Tripadvisor, register your business on Tripadvisor, or generally just “get your business onto” the platform, there are a few simple steps to follow.

Step 1: Create an account and select your business type

Go to Tripadvisor’s Get Listed page and choose “Hotel.” Ensure you select the correct category to appear in relevant searches. If you have an attached restaurant, it may be worthwhile creating a separate listing for the restaurant as well – this will ensure that people only looking for a place to eat will still find your hotel.

Step 2: Fill in your hotel’s detail and describe your hotel

Provide your hotel’s name, address, phone number, and official email. Craft a compelling description that highlights unique features, amenities, and services. Use relevant keywords to improve searchability.

Step 3: Upload photos and submit your listing

Upload high-quality photos of rooms, common areas, exterior views, and special amenities. Remember that well-lit, professional photos can attract more interest; investing in good photography is always worthwhile. Review all details for accuracy and submit your listing. The review process may take several days.

Step 4: Claim and optimise your listing

Once approved, claim your listing via Tripadvisor’s Management Center. Regularly update photos, descriptions, and respond to reviews. Engage with guests by promptly addressing their feedback. Encourage satisfied guests to leave positive reviews to enhance your hotel’s reputation and attract more bookings.

Tripadvisor for business: Commonly asked questions

How do I log into my Tripadvisor business account?

Visit the TripAdvisor owner login page and enter your credentials. If you’re new, you’ll need to create an account and claim your business.

How do I edit my business listing on Tripadvisor? 

After logging in, go to the “Manage Your Listing” section where you can update your property details, add photos, and respond to reviews.

How do I use the Tripadvisor management centre?

The management centre provides tools to monitor your property’s performance, analyse guest feedback, and optimise your listing to attract more bookings.

“Since implementing SiteMinder, our operations have undergone a remarkable transformation. SiteMinder has revolutionised our approach to channel management and proven to be the ultimate solution for our challenges with availability, inventory, and OTA management.”

Pawarisa Hirantanes,

Corporate Director

Chatrium Hotels & Residences

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Strategies to boost your Tripadvisor business listing

Update your listing regularly

Keeping your Tripadvisor listing up-to-date ensures that potential guests receive the most accurate information about your hotel. Regular updates can include new amenities, changes in services, and any renovations or improvements. This shows that your hotel is active and engaged, which builds trust with potential guests.

Use high-quality images of your property

Photos are one of the first things that potential guests will notice. High-quality, professional images can significantly impact a guest’s decision to book. Ensure that your photos are well-lit and showcase the best features of your property, including rooms, common areas, and unique amenities. Update these images regularly to keep your listing fresh and appealing.

Adjust your rates

Dynamic pricing can help you stay competitive in the market. Regularly review and adjust your rates based on seasonality, local events, and occupancy rates. Offering competitive rates can attract more bookings and keep your property fully booked. Additionally, consider using rate management tools (like those provided by SiteMinder) to streamline this process and make informed pricing decisions.

Offer promotions or discounts to attract more bookings

Special offers and discounts can be powerful incentives for attracting new guests. Consider offering limited-time discounts, package deals, or loyalty rewards to encourage bookings. Highlight these promotions on your Tripadvisor listing to make them more visible to potential guests.

Leverage hotel management tools

Using hotel management tools like SiteMinder can significantly enhance the way you integrate and manage your Tripadvisor listing. SiteMinder allows for seamless updates to your listings and ensures that your property details are always current. It also helps manage your rates, availability, and bookings efficiently, reducing the chances of overbooking or discrepancies.

A Tripadvisor ranking is essentially your hotel’s report card in the eyes of your guests. It’s where you stand compared to other properties in your area, based on the reviews and ratings that your guests leave. The higher your ranking, the more likely it is that potential guests will notice and choose your property.

Your Tripadvisor ranking is influenced by how many reviews you get, how positive they are, and how recent they are. In simple terms, the more happy guests you have sharing their experiences, the better your ranking will be. This ranking isn’t just a number—it’s a reflection of the quality of service you provide and how well you meet your guests’ expectations.

This blog will discuss how the algorithm works and how to improve your ranking on Tripadvisor.

Why is your TripAdvisor hotel rating important?

Keeping a strong Tripadvisor ranking can make a big difference to your business, as it plays a huge role in helping new guests decide where to book. So, every positive interaction, every thoughtful detail you add to your guest experience, brings you one step closer to climbing higher on that list.

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What you need to know about the Tripadvisor ranking algorithm

Tripadvisor announced some changes to its ranking algorithm and the way it displays popular hotels – and it appears to be good news for hoteliers.

Here are eight interesting things we learned about the method for ranking popular hotels:

1. Reviews

Travellers and guests are sharing experiences faster than ever before. Back in 2006, there were six million reviews on the Tripadvisor website. Today that figure stands at more than one billion – and travellers are adding hundreds of new reviews and photos to the website every minute and the record number of reviews resulted in ‘fast-risers’. There were instances of newly-listed hotels skyrocketing to the top of rankings after securing their first few 5-bubble reviews – also known as ‘fast-risers’. Eventually, as more travellers submit reviews, the rankings would level out. 

But of course that’s less than ideal because fast-risers would temporarily enjoy higher positions, and other hotels would appear lower than they would have otherwise. Hundreds of millions of reviews were analysed to fix it

2. Popularity ranking algorithm

When designing the change of algorithm, Tripadvisor analysed hundreds of millions of reviews covering the past 15 years. They researched how the rankings of properties were impacted over time. 

The result was an enhanced popularity ranking algorithm placing more emphasis on quantity and consistency, which helps stabilise the ranking for all businesses, reduces fast-riser behaviour and creates a more accurate overall ranking for travellers.

3. Quality, Recency, and Quantity

Tripadvisor’s method for ranking properties continues to be based on quality, recency, and quantity. But how does the site define these?

Quality

If all other things between two properties are equal, then the one with the most 4- and 5-bubble ratings will rank higher than a business with lower bubble ratings.

Recency

Tripadvisor posits that recent reviews are more valuable to travellers than older ones, therefore, more consideration is given to newer reviews.

Quantity

Multiple reviews help travellers make a more balanced and informed decision. A hotel doesn’t have to have more reviews than others – just enough for your guests to make a comparison that is statistically accurate and meaningful.

4. Good experience gets rewarded

You’ll be rewarded for your consistently good guest experience. The algorithm does a better job of rewarding your great customer service – so the more you deliver outstanding guest experiences, the more you’ll benefit. 

A property that has many consistently good reviews will rank higher than one that has many reviews, some of which are good and some of which are poor. This is because there is more confidence in the ranking if a large number of travellers are reporting consistent experiences.

5. Most recent guest experience

It’s all about your current guest experience. If you’re relying on those excellent reviews circa 2010, then sadly the new algorithm isn’t going to pay off for you and your hotel. Lots of recent reviews are more highly-valued by Tripadvisor because they give the site confidence in the current experience at the property. If your reviews predate most of your hotel’s staff, then work on getting some fresh reviews posted online.

6. Smaller properties can compete

Tripadvisor indicated that smaller properties can compete with larger ones. While the website found that smaller properties tend to have fewer reviews (due to fewer customers), the more personalised guest experience and service results in more guests willing to give feedback and write positive reviews.

7. Always respond to reviews

Replying to reviews and acknowledging both positive and negative feedback is crucial to building loyalty and future bookings. Management responses are not a consideration for the popularity ranking algorithm. 

However, Tripadvisor believes responses still make a big impact on your prospective guests, with thoughtful responses to reviews set to impress guests.

8. Metasearch

Your commercial relationship with Tripadvisor doesn’t matter. If you have a commercial relationship with Tripadvisor – including hotels that use metasearch, Instant Booking, and business listings – it has no impact on your property’s ranking, which is re-calculated on a daily basis.

How to improve your hotel’s Tripadvisor ranking

Improving your hotel’s Tripadvisor ranking involves delivering exceptional guest experiences, encouraging positive reviews, and actively managing your online presence. Here are some practical steps to help you boost your ranking:

1. Deliver outstanding service

Exceed expectations by going above and beyond in your service, whether it’s remembering a guest’s name, accommodating special requests, or offering unexpected perks. These small gestures can lead to glowing reviews. The same must be true for your entire team, so ensure that every team member is trained to provide excellent service consistently, as friendly, attentive, and knowledgeable staff make a lasting impression on guests.

2. Encourage reviews

Encourage guests to leave a review when they’re most satisfied—typically at check-out or after resolving any issues during their stay. The best way to do this is to make it easy for them by providing a simple way to leave a review, such as sending a follow-up email with a direct link to your Tripadvisor page.

3. Respond to reviews

Be prompt and professional in responding to all reviews, both positive and negative. Thank guests for their feedback, and if there’s a negative review, address the issues raised sincerely and professionally. Show you’re listening by addressing concerns mentioned in reviews, which demonstrates to future guests that you care about their experience and are committed to improving.

4. Keep your information up to date

Ensure your hotel’s details—such as contact information, amenities, and photos—are current and accurate on your Tripadvisor profile, as guests appreciate transparency and knowing exactly what to expect. Regularly update your profile to reflect any renovations, new services, or significant changes.

5. Engage with guests during their stay

Resolve issues quickly if a guest raises a concern during their stay, as addressing issues on the spot can turn a potentially negative review into a positive one. You can create memorable experiences by offering unique touches or little extras that guests will remember and want to mention in their reviews, such as local tips, special amenities, or personalised services.

6. Monitor your competitors

Learn from the best by keeping an eye on what the top-ranked hotels in your area are doing. Observe what their reviews highlight and consider adopting or adapting best practices. Differentiate your offering by identifying what sets your hotel apart and ensuring it’s highlighted in your communications and services, as guests appreciate unique experiences.

“We’re getting more bookings since using SiteMinder. As an added bonus, more than half of those are coming in via our own website. The setup was super easy. Our team quickly learned to navigate the new system and today, we’re operating seamlessly.”

Jan Wichmann,

Owner and Property Manager

Hotel Graf Bentinck

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How did I fall in ranking on Tripadvisor?

Your Tripadvisor ranking may drop due to a few key factors: a decline in the number or quality of recent reviews, negative feedback that hasn’t been adequately addressed, or competitors receiving more positive reviews. If your profile information is outdated or if you’ve had any service lapses, these could also contribute to a lower ranking.

This is why it’s crucial to stay active on Tripadvisor. Generally, the closer an eye you can keep on your rankings and reviews, and the rankings/reviews of your competitors, the less likely it is that your Tripadvisor ranking will fall.

A direct booking website is like your hotel’s very own online storefront. It’s a website that’s all about your hotel and nothing else. Here, guests can check out all the cool stuff your hotel offers, like comfy rooms, tasty breakfast, or that amazing rooftop pool. And if they like what they see, they can book a room right there and then. It’s open all day, every day, so guests from all over the world can make a booking whenever it suits them.

Rewind just 15 years and it’s likely most hotels would struggle with the concept of selling their rooms via any other third party than their dedicated, local travel agent. We’ve since moved on, of course, and, with digital technology continually shrinking the world, third party sites such as Expedia.com and Booking.com have become necessary checkpoints for today’s hotels. And yet, there are definite advantages to streamlining bookings and directing people back to your own website – your digital persona.

Now, this is different from websites like Expedia or Agoda. These are like huge online shopping malls where lots of different hotels have their own little store. These sites can help get your hotel in front of more eyeballs, but they also charge you a fee for every booking made through their platform. It’s like paying rent for having your store in their mall.

But with a direct booking website, you’re the boss. You don’t have to pay any fees for bookings, which means more money stays in your pocket. And because there’s no middleman, you can chat directly with your guests. This can help you understand what they like or don’t like, so you can make their stay even better. Plus, it’s a great way to build a relationship with your guests and make them feel special. And when guests feel special, they’re more likely to come back and even recommend your hotel to their friends.

So, a direct booking website is not just a place to get more bookings, it’s also a powerful tool to build relationships with your guests and keep them coming back for more.

This blog will take you through the whole process of how a direct booking website works and how to create one for your hotel.

What are the benefits of direct booking websites?

In the competitive world of hospitality, finding the right balance between different booking channels can significantly impact your bottom line. While Online Travel Agents (OTAs) can provide valuable exposure, they often come with hefty commission fees. That’s where a direct booking website comes in. By allowing guests to book directly with you, a direct booking website can offer a host of benefits, from lowering your overall cost of distribution to building strong brand awareness and rapport with your guests. Let’s delve into these benefits in more detail.

1. You can lower your overall cost of distribution

With some OTAs charging up to 30% in commissions, finding the right balance of online channels to advertise your property on can significantly increase your revenue. Because direct bookings are commission free, you can lower your overall cost of distribution by focusing on direct bookings as well as bookings from OTA’s.

2. You build strong brand awareness

By increasing traffic to your own website, you’ll have already fulfilled one fundamental marketing objective: Building brand awareness. In order to drive potential guests away from OTAs and to your site, work on your online presence. This includes:

• Enhancing your social media channels – Develop a social media strategy to maximise your reach on relevant platforms such as Facebook, Pinterest, Instagram and Twitter. Put up links, photos, new offers and promotions. Make it easy for potential guests to find your site.
• Optimising your website – Provide visitors with a user-friendly, well-designed interface that makes it easy to book.
• Ensuring there is brand consistency across all of your outlets – See social media platforms as an extension of The Online You.
• Having either a mobile optimised website or a website that has responsive design – Ensuring your rooms are bookable on mobile devices should be at the top of your ‘to do’ list. Mobile usage accounts for more than 25% of all web traffic, while 6% of the global population own a tablet – that’s 1 in every 17 people! Boost your brand and establish credibility. Direct engagement with potential guests will follow.

3. You build rapport directly with your guests

Being in touch with your guests directly allows you to build rapport. Consider offering value-add items as a thank you for booking directly with you, so you not only attract potential guests but keep them coming back.

One example of a hotel doing this well is The Alp Art Hotel in Austria, which offers a range of value-add deals for guests who book directly. From Best Price Guarantee, Personal Advice, Rental Deals and Re-visitor Deals, The Alp Art Hotel utilises all resources to turn lookers into bookers.

4. You deliver a more personalised experience for your guest

It’s all about customer service and direct communication. Guests enjoy their experience more when they feel looked after and receive personalised treatment, especially when they’re on holiday.

So, if handled correctly, a personalised experience can instil major trust with your guests, create loyalty and boost your brand’s credibility.
Optimise your guests’ experience by understanding the rational and emotional drivers they value most, and then deliver on those drivers across their touchpoints with your brand.

5. You increase your promoters

Satisfied customers are your greatest brand ambassadors. This means revenue. Guests who return to your property are crucial assets, so use these relationships to promote your brand further.

A survey of around 40,000 people, from more than 10 global loyalty programs, showed that a positive promoter score (positive people talk) can be created by redemption for experiences and unique items.

To quote the old adage, it’s often five times more costly to win new customers than it is to retain them, so don’t just focus on winning new customers; surprise your existing guests with tailored offers and keep the conversation going.

Direct online bookings are a crucial part of successfully capturing more market share, but it’s ultimately up to you to ensure the appropriate technology is in place to allow potential guests to book directly – and easily – through your website. Get an effective booking engine set up, then look to manage your online channels to further increase your market share.

Make direct booking easy at your hotel

Use SiteMinder’s integrated platform to build a hotel website, take direct reservations, and automate your inventory management.

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How to build a direct booking website

So how do you build your direct booking website? The process is the same whether you’re looking for a hotel booking site or an airbnb direct booking website.

There are two main steps:

Step 1: Build your website

This might sound daunting but it can actually be very simple. You don’t need to be a web developer or even hire one. 

There are specific tools for hotels, like SiteMinder’s website builder, which can create a website in minutes. All you need to do is prepare your information, content, and images and the tool will do the rest.

Some essential items to tick off during this process include:

• Choosing a template and design that suits your needs
• Organise your logo and define your brand look and feel
• Customise the main pages that will be featured such as your homepage, about us, gallery, and your booking page
• Add information and high quality photos of your rooms and amenities

You should also make sure that you have language options available for overseas guests and integrations with apps like Google Maps and TripAdvisor so guests have access to all the details they need to make a booking decision.

Learn more about how this all works with SiteMinder’s website builder.

Step 2: Implement direct booking capability

To effectively take online bookings and payments, you need to integrate an online booking engine with your website. 

As a bonus, a booking engine will also enable you to promote and be booked via metasearch sites and via your social media channels where you can place a direct link to your booking website.

By using a platform like SiteMinder, integration between your website and booking engine will be seamless.

What is the best direct booking website?

A robust online presence is no longer a luxury but a necessity for hotels. It’s the digital storefront that showcases your hotel’s unique offerings, attracts potential guests, and most importantly, drives direct bookings.

Here are two well-regarded platforms that you might consider:

• SiteMinder: SiteMinder’s platform combines sophistication with simplicity, with comprehensive features and integrations for medium to large independent hotels. Easily build your website, integrate your booking engine, and connect your channel manager.
• Little Hotelier: Little Hotelier is an all-in-one solution that lets small accommodation providers like B&Bs, motels, and guesthouses control their whole business from one place. This includes creating a direct booking website.

SiteMinder’s hotel website builder is designed to empower hoteliers to create a professional, engaging, and mobile-optimised website effortlessly.

With SiteMinder, you’re not just building a website; you’re crafting an online experience that encapsulates the essence of your hotel and entices potential guests to book directly. From selecting customisable themes that reflect your hotel’s aesthetic to integrating a seamless booking engine, SiteMinder’s website builder is a comprehensive tool that puts you in control of your hotel’s online narrative.

• Effortless Website Creation: With SiteMinder, you can create a professional, mobile-optimised hotel website without the need for web developers. Choose from a range of customisable themes and make your website truly unique.
• SEO-Friendly Design: SiteMinder’s website builder is designed with search engine optimisation in mind. From HTTPS security to well-structured HTML and CSS, SiteMinder helps your hotel rank highly on search engine results pages.
• Integrated Booking Engine: Seamlessly integrate your website with SiteMinder’s Booking Engine for a smooth booking experience. Plus, display promotions and optional extras to convert last-minute bookings.

“Our previous direct booking option was very confusing and not very user-friendly. SiteMinder’s booking engine is a lot better integrated on the website and makes it easy for guests to book. So far, we have increased our direct bookings by 15%”

Mirja Wolf,

Manager

Hotel Kragemann

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Choosing a direct booking website builder

When it comes to making a purchase decision, some non-negotiables include: 

• Being able to take bookings and payments directly from guests on your site
• The ability to accept bookings via metasearch and via social media. 
• Seamless integration between your website, booking engine, and channel manager.
• The integrity and consistency of your brand must be maintained.
• Multi-language and multi-currency options available for guests.
• Mobile optimised design to cater to guests on the move or booking last minute.

It can certainly help to do thorough research by reading reviews, watching demos, and even trialling products to see if they match your requirements. 

This can also be important for understanding the level of training and support you’ll have access to with your provider.

Technology has undeniably brought a world of convenience to revenue management. And, as we look to the future, it will take on a greater and more central role as the practice undergoes a fundamental shift.

“If we talk about the future of revenue management, we should start with the very fact that it should no longer be called ‘revenue management’,” says Ira Vouk, a hospitality consultant, acclaimed author of revenue management publications and member of the HITEC Advisory Council. “We need to rename the practice to ‘revenue and profit optimisation’, and start thinking about profit-oriented metrics beyond RevPAR (Revenue Per Available Room).”

In a future that demands a greater focus on revenue and profit optimisation, technology will become increasingly pervasive, driving the convergence of data, systems and people. Indeed, this convergence is already taking place and, looking ahead, these three factors, which have traditionally operated in silos, will become more interconnected than ever before.

The role of data in revenue and profit optimisation

As hotels adopt a more profit-oriented approach to their commercial strategies, the convergence of data sources for revenue management is gaining importance. Enzo Aita, a hotelier-turned-technologist and creator of FunnelTV, an online channel dedicated to hotel technology, believes that the commercial success of hotels relies on the data they have at their disposal.

“High-quality, reliable data is critical for producing optimal outputs,” says Aita, who is also the Vice President of Business Development at HyperGuest. “If current systems are getting data that’s subpar or insufficient, they won’t be able to generate optimal results.”

Aita emphasises that having a sufficient volume of data is increasingly necessary, particularly as artificial intelligence (AI) will enhance the capabilities of revenue management systems (RMSs) and smart platforms in processing data.

“AI and machine learning will improve the quality of recommendations made by RMSs. These systems will be able to adopt open-pricing strategies where they can adjust prices based on factors like demand, competition, reputation, occupancy and historical data, depending on the data they can collect and analyse.”

For this reason, revenue managers will need to get more creative at gathering market intelligence, beyond the historical data provided by their internal systems. A richer data set will allow for a clearer picture of market conditions and improved forecasting.

Vouk emphasises, “There are so many data points available right now that we can aggregate to understand what’s actually happening in the market. Solely comparing whatever is on a property’s books to the same time last year is no longer sufficient. We need to incorporate bookings from metasearch engines, OTAs (online travel agencies), GDSs (global distribution systems), destination data, events intelligence and even data from car rentals and the TSA (Transport Security Administration).”

The need for more modern and integrated systems

If revenue and profit optimisation requires harnessing all possible data sources, it follows that a convergence of systems is likewise necessary. In this regard, Ryan Tuckerman, Group Director of Sales, Revenue and Distribution at Ovolo Hotels, describes the importance of connectivity among systems in shaping the future of revenue management.

“Not only have revenue decisions evolved drastically, but so have the systems and platforms that help us make these commercial decisions,” says Tuckerman. “For the next five years, advancements in technology will definitely influence the practice as we’re seeing a shift in the way that these systems will be connected with each other.”

Yet, despite the industry recognising the need for better connectivity, its struggles with a fragmented tech ecosystem persist. Citing the issue of integration among RMSs and property management systems (PMSs) as an example, Aita notes, “A significant hurdle faced by the industry is the sheer number of PMSs that an RMS needs to connect with in order to work effectively. We’re still seeing a number of technical and commercial barriers to integration on the part of PMSs. It’s almost like these platforms don’t want people to step into their garden and prefer to keep their clients within their perimeters.”

In light of these integration challenges, the industry must work to remove barriers that prevent revenue managers from receiving strategic, real-time insights that accelerate their shift towards profit optimisation.

More importantly, ensuring a convergence of systems will greatly empower independent accommodation properties, a vital segment that accounts for the majority of the global hotel industry but is crippled by a lack of revenue management resources and capability. With more integrated systems, these properties will be able to perform forecasting and optimisation – on par with their large hotel chain counterparts – and acquire revenue management skills in the process.

However, the systems available to these providers have to be automated and integrated into their workflows. As Vouk explains, “The brains behind this technology will need to be very smart because this segment will rely on automation quite a lot. This is where AI comes in, specifically machine learning, which will gather important data from all sources, calculate forecast and optimisation decisions and push these into the PMS.”

The revenue manager of tomorrow

As with many data-driven professions, there has been much debate within the hotel industry on the role of AI and, specifically, whether it will enable or eradicate today’s revenue managers. Diego De Ponga, the current CEO at Port Hotels and former Corporate Director of Revenue Management at Palladium Hotel Group, believes that it ultimately comes down to the ability of revenue managers to evolve at the same pace as the fast-evolving environment around them.

“Revenue managers need to understand the whole hotel, incorporate distribution and cost strategies into a property’s incomes and understand how income flows to profits. If you are able to control that, it won’t be possible for AI to change your job. But if you only measure your work through ADR, if you don’t take care of costs and if your job is only about checking competitors and increasing prices, you’re not going to have a job in two years,” says De Ponga.

Tuckerman echoes this sentiment. He notes that with the changes in today’s practice, the revenue manager of tomorrow should influence much more than just pricing and inventory management, but a hotel’s entire business strategy as well.

“Gone are the days when revenue managers were spending 80% of their time generating reports,” says Tuckerman. “Being a revenue manager now is about improving your position and changing the future. It’s about analysing the data, forming the insights and then taking action.”

Given the growing importance of adopting a comprehensive view of hotel operations, Tuckerman highlights that a successful revenue manager in the future must learn to connect with other departments, especially those which are commercially-oriented.

“A revenue manager five to ten years ago could hide behind the spreadsheet and not engage as much as required now, but with the rise of OTAs and key distribution partners that have much more of a commercial approach, the revenue manager’s mindset needs to get onboard.

“The people leading the forefront in revenue management will have a mixed skill set of revenue, distribution and sales, and they’re able to leverage these internal partners as required. The focus for a successful revenue and distribution department is having that holistic approach to driving revenue.”

Hopper is a travel booking app that uses an algorithm to predict future flight and hotel prices. It helps travellers find the best deals and save money on their trips. Hopper is known for its user-friendly interface and its ability to predict price fluctuations, making it a popular choice for savvy travellers.

This blog will explore all the ins and outs of hopper and how you can work with it at your hotel.

Hopper reviews: Is Hopper legit for hotels?

You might be wondering, is Hopper a legitimate and reliable platform for booking hotels? The answer is yes, Hopper is a reputable and growing travel booking platform. It’s gaining popularity amongst travellers and has become a leading force in the travel industry, especially in North America. In fact, it’s one of the fastest growing OTAs in the US.

However, just like any travel booking platform, Hopper has its pros and cons. It’s important to understand how it works from a hotel’s perspective before making a decision about partnering with them.

Pros:

• Reaching a new audience: Hopper has a growing user base, particularly among price-conscious travellers, giving you access to a potential new customer pool.
• Increased visibility: Listing on Hopper can boost your hotel’s visibility, especially if you offer competitive rates. This could lead to more bookings and increased revenue.
• Potential for higher occupancy: Hopper’s focus on last-minute deals and price-sensitive travellers can help fill empty rooms and increase your occupancy rates.
• Direct booking flexibility: Hopper allows hotels to offer hourly or monthly bookings, expanding your potential customer base beyond traditional overnight stays.
• Streamlined booking process: The Hopper app’s user-friendly interface and streamlined booking process can make it easy for travellers to book your hotel.

For more proof, here’s an insight from our latest edition of Hotel Booking Trends:

“As more, particularly domestic travellers, hunted down accommodation deals via Canadian-based Hopper, the online marketplace made its anticipated Top 12 debut in 2023.”

Cons:

• Commission fees: Hopper takes a commission on each booking, which can cut into your profits. Make sure to factor this into your pricing strategy.
• Potential for lower rates: Hopper’s pricing model often focuses on discounted rates, which can mean accepting lower rates than you would on other channels.
• Limited control over guest communication: Hopper may handle some guest communication, potentially limiting your direct interaction with them.
• Marketing and promotion: You’ll need to actively market and promote your hotel on Hopper to attract guests. It’s not simply a passive channel.
• Competition: You’ll be competing with other hotels on Hopper for bookings. It’s important to stand out with competitive rates, unique offerings, and strong marketing efforts.

Manage Hopper and other sites easily with SiteMinder

Simplify your hotel's distribution with SiteMinder's platform, helping you list on more than 450 channels worldwide.

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Why should your hotel be available on Hopper?

Hopper can be a valuable channel for your hotel, giving you access to a new audience of price-conscious travellers. Here’s why:

• Reach a wider audience: Hopper has a large user base, giving your hotel access to a new audience of potential guests.
• Increase visibility: By listing on Hopper, you can increase your hotel’s visibility and attract more bookings.
• Boost revenue: Hopper’s user base is known for its price sensitivity, meaning they are more likely to book hotels that offer competitive rates.

How to list on Hopper hotels

Listing your hotel on Hopper is a relatively straightforward process. Here are the steps:

1. Register your property: Create an account on the Hopper Partner Central platform and submit your hotel’s information, including photos, descriptions, and amenities.
2. Offer booking types: Specify the types of bookings you offer, such as standard rooms, suites, and different bed types, as well as hourly bookings, monthly bookings, or both.
3. Diversify your offerings: Consider adding special packages or deals to attract more guests, such as breakfast packages or stay-and-play deals.
4. Choose payment methods: Decide which payment methods you accept, such as credit cards and debit cards. You can also accept payment through Stayhopper.

“We used to have to block a few rooms in the busy season to make sure that there were no double bookings. Thanks to SiteMinder, I can sell every last room without worrying about this because it automatically rejects new bookings once the rooms are sold out.”

Tini Diekmann,

Sales and Revenue Manager

Hotel Oderberger Berlin

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Hopper extranet login for hotels

Once your hotel is listed on Hopper, you can manage your listings using the Hopper extranet. This platform allows you to update rates, availability, and other important information. The Hopper extranet also provides insights into your hotel’s performance, so you can make data-driven decisions about your pricing and marketing strategies.

While the Hopper extranet is useful, it only gives you the ability to manage your Hopper listings – not your entire inventory. This is a problem if, like most hotels, you have listings spread out across a vast number of different OTAs, as well as your own direct booking calendar. Without lining up your listing availability, prices, amenities, and so on, you can end up with inconsistent, inaccurate, and ultimately unappealing listings on not just Hopper, but all of your inventory.

That’s where channel managers like the one provided by SiteMinder come in. With SiteMinder, you can manage all your listings across your entire inventory, no matter where it is, from a single platform. This means automated pricing updates (including dynamic pricing and mobile pricing), automated availability changes (no more double bookings!), and automated changes to room descriptions and amenities (no more worries around advertising something that’s no longer available).

Rate parity, availability management, and much more, all through SiteMinder. No need for OTA extranet login juggling.

The Trip.com Extranet is an online platform that allows hotel owners and operators to manage their property listings on Trip.com. It provides tools for updating room availability, adjusting rates, adding property details, and managing bookings. By using the extranet, you can ensure that your hotel information is up-to-date and appealing to potential guests, which is crucial for increasing your bookings and revenue.

This blog will take you through everything you need to know about the Trip.com Extranet.

Why should you be listed on Trip.com hotels?

Trip.com is a global online travel agency that connects millions of travellers with hotels worldwide. Being listed on Trip.com offers several benefits:

• Increased visibility: Your hotel will be visible to a large audience of potential guests from around the world.
• Boosted bookings: By utilising Trip.com’s promotional tools, you can increase your booking rates.
• Comprehensive management: The extranet allows you to manage all aspects of your property’s online presence in one place.
• Enhanced guest relations: Efficiently manage guest reviews and improve your property’s reputation.
• Revenue growth: Optimise your listings to attract more bookings and increase your revenue.

Simplify your management with SiteMinder and Trip.com integration

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eBooking Extranet vs Ctrip Extranet: What’s the difference?

While both eBooking and Ctrip extranet platforms offer similar functionalities, they are designed to cater to different markets. eBooking’s extranet is more generic, whereas Ctrip, a subsidiary of Trip.com Group, focuses on the Chinese market. Here’s a brief comparison:

• User interface: Ctrip’s extranet has a user interface tailored to Chinese users, while eBooking offers a more universal design.
• Market focus: Ctrip focuses on Chinese travellers, whereas eBooking caters to a global audience.
• Features: Both platforms offer essential features for managing bookings and listings, but Ctrip may have additional tools specific to the Chinese market.

Trip.com Extranet: How to login

Logging into the Trip.com extranet is straightforward and can be done in a few simple steps. Whether you are a new user or an existing one, this guide will help you access your dashboard with ease.

Step 1: Visit the login page

Open your preferred web browser and navigate to the Trip.com extranet login page. You can do this by typing “Trip.com extranet login” into your search engine or directly visiting the URL ebooking.trip.com/login/index.

Step 2: Enter your credentials

• Username: Enter the username associated with your Trip.com account. This is typically the email address you used during registration.
• Password: Enter your secure password. If you’ve forgotten your password, click on the “Forgot Password?” link to reset it via your registered email.

Step 3: Access your dashboard

Once your credentials are verified, you will be directed to your property’s dashboard. Here, you can manage all aspects of your listing, including room availability, rates, and reservations.

“The system is extremely user-friendly, stable, and simple to understand, as well as has a wide range of capabilities that fully suit the needs of varied tactics. We were able to increase RevPAR by more than 30% by executing yield management on the platform swiftly and accurately.”

Atchara Nakpoom,

Revenue and Reservations Manager

Kirimaya

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Listing optimisation after Trip.com Extranet login

Optimising your property listing on Trip.com is essential for attracting more bookings and maximising your revenue. A well-optimised listing ensures that your property stands out to potential guests, provides accurate and enticing information, and enhances the overall guest experience. 

Here’s a comprehensive guide on how to optimise your listing effectively after logging into the Trip.com extranet:

• Update room availability: Use a channel manager to sync room availability across all platforms in real-time, preventing overbooking and optimising inventory. Forecast demand using historical data and set automated rules to adjust availability based on occupancy rates and booking patterns.
• Adjust rates regularly: Use a revenue management system (RMS) to adjust rates dynamically based on local events, competitor pricing, and market trends to stay competitive. Create multiple rate plans and packages, offering bundles like breakfast or spa access to attract different market segments and increase booking value.
• Enhance property descriptions: Provide detailed descriptions of each room type, including size, bed configurations, and amenities. Highlight recent renovations to keep listings fresh. Use targeted keywords in descriptions and local SEO to attract guests searching for specific neighbourhoods or nearby attractions.
• Use high-quality images: Invest in professional photography and showcase various aspects of your property, such as room interiors, dining areas, and event spaces. Use 360-degree virtual tours for an immersive experience. Regularly update images to reflect changes in decor, seasonal settings, and new amenities.
• Respond to reviews: Use a reputation management tool to monitor and respond to reviews across multiple platforms. Develop a standard procedure for prompt and professional responses. Analyse review trends to identify common issues and make improvements. Highlight these improvements in responses to show you value guest feedback and are committed to enhancing their experience.

Hotel rate shopping is the practice of tracking and monitoring hotel rates amongst your local market and competitors. It also involves tracking your own rates across your connected distribution channels.

Hoteliers use rate shopping to benchmark against other properties, optimise pricing decisions, and find opportunities to maximise revenue and profitability.

This blog will give you a full overview of hotel rate shopping and rate shopper tools, which you can use to boost revenue success at your business.

Why is hotel competitor rate shopping useful?

Hotel competitor rate shopping is important if you want to maintain a competitive advantage in the modern hotel industry. Today’s market demands the adoption of dynamic pricing and hotels now regularly change rates daily or even multiple times in a given day.

Rate shopping your hotel competitor rates gives you the opportunity to:

• Optimise pricing: Understanding competitor pricing helps you set competitive rates, maximising revenue without sacrificing occupancy.
• Identify pricing gaps: You’ll be able to spot chances to increase rates without losing market share.
• Avoid rate wars: By monitoring competitor pricing, you can prevent unnecessary and accidental destructive price competitions.
• Improve forecasting: You can analyse competitor rate changes to predict demand fluctuations and adjust your pricing accordingly.

Keeping an eye on your local market and competitors shouldn’t necessarily dictate your strategy, but it’s invaluable for ensuring you always offer the right price at the right time to optimise profit.

Hotel rate shopping made easy

With SiteMinder you can easily perform rate shopping and take advantage of opportunities in the market.

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What are the benefits of hotel rate intelligence?

Hotel rate intelligence isn’t simply about knowing competitor rates. There are a broad range of advantages that it opens up for your business including:

Benchmarking capabilities

Comparing your rates to similar hotels in your area helps you understand your position in the market.

With this knowledge you can identify strengths and weaknesses, set goals, and ultimately optimise operations.

Pricing strategy optimisation

Based on competitor rates and market demand, you can adjust your pricing strategy to optimise revenue.

This includes finding ways to differentiate yourself, targeting specific demographics, and pricing dynamically to boost your average daily rate and profit.

Better revenue management

With up-to-date market information and greater visibility, you can improve overall revenue management.

Increase occupancy and profit by tapping into known supply and demand trends – know when guests are willing to pay more to secure a room or when you need to add additional value to entice a reservation.

Data-driven decision making means you will always make the optimal move for your hotel.

Maintaining rate parity

Regular rate shopping will also allow you to see how your own rate is being displayed across all booking channels. This means you’ll be able to spot any discrepancies and make adjustments to maintain consistency. 

Rate parity is important to avoid revenue loss and guest disillusionment. It will also make sure you avoid any potential penalties from the OTAs themselves.

Enhancing guest experience

With the proper market knowledge at your disposal, you’ll be able to tailor pricing and offers that suit your target segments, resulting in a better chance of conversions to bookings. This will also boost customer satisfaction because the guest will feel like they are getting value for money.

Since pricing intelligence tools will save you time, you can also place extra focus on other tasks including guest satisfaction.

What is a hotel rate shopping tool?

A hotel rate shopping tool is software that enables the practice of hotel rate shopping in an automated, digitalised, manner. You can monitor and compare your property’s rates against those of your competitors without the need to spend a lot of time doing it manually or creating reports. 

A rate shopper provides real-time data on pricing fluctuations and can generate reports instantly, allowing you to make informed decisions about your rate strategy.

Advantages of using hotel rate shopping software

Here are the advantages you’ll gain from using hotel rate shopping software, instead of performing manual research:

• Increased efficiency: Rate shoppers can collect and display data much faster, produce graphs and dashboards for easy viewing, and generate instant reports for analysis.
• In-depth intelligence: With real-time data produced in a digestible format, you’ll be able to identify booking trends, seasonal patterns, and demand fluctuations easily.
• More confident decision making: With a rate shopper, you can be more sure the data is accurate and up-to-date, and you won’t make any mistakes in recording or displaying it.
• A single source of truth: Ideally your rate shopper will be a feature of a larger platform. So, in the case of a platform like SiteMinder, you’ll easily be able to generate the performance insights you need without other integrations.
• Stay on top: With the right data and clarity on what it means, you can always offer the most competitive price which will help you optimise both your occupancy and revenue goals.

How to use a hotel rate shopper

A hotel rate shopper will do a lot of your hard work for you but there’s still some decisions to make and some ins and outs of using one.

Here’s a good process to follow while using your chosen rate shopper:

1. Define your competitive set

Identify which hotels directly compete with yours for the same customer segment. Consider using criteria such as location, star rating, amenities, and target market.

2. Analyse competitor rates

Identify patterns in competitor pricing, such as rate changes based on day of the week, occupancy levels, or special events. You should also check the difference between your rates and competitors’ rates.

3. Track your own rates

Evaluate how your rate is advertised across all booking channels, including your own website, to ensure your rates are consistent.

4. Adjust your pricing 

Use the gathered data to optimise your rate strategy to attract the most valuable guests at maximum value.

5. Track performance and analyse reports

With channel manager integration, you’ll be able to get extremely useful reports that let you see your historical performance, your best performing channels, your pace on previous time periods, and more.

“People who have used numerous systems will find SiteMinder to be extremely user-friendly. Compared to the other complicated systems, it is just so simple to use. When we expand our hotel to other areas, SiteMinder will again be our first choice.”

Pichata Ritchie,

Cluster E-commerce Manager

VALA Hua Hin – Nu Chapter Hotels

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How to choose the best rate shopper for your hotel

Choosing the best rate shopper for your hotel will involve ticking off some of the most important criteria that you need met.

Generally you’ll want a rate shopper that makes it fast and easy to track the local market, and one that delivers powerful insights to aid your strategic decision making.

Look for a rate shopper provider that offers:

• Real-time insights on at least 10 local competitors
• Clear, digestible, data visualisation
• A single interface from which to access your insights
• Unlimited daily rate shops so you can always be in the know
• Transparency on your own rates
• Detailed performance reports
• Channel and country mix analysis
• A demo and/or trial to test suitability

Outside of this it’s important to do your research by reading some reviews and testimonials on rate shoppers you are considering. You should also ask yourself if you’re looking for a rate shopper only or a more sophisticated solution that offers additional revenue optimising features.

If you’re looking for a powerful, reliable, rate shopping tool that comes with a whole platform’s worth of features, then you’re in the right place.

Hotel profit margin is defined by the percentage of a hotel’s revenue remaining after subtracting all business expenses, including staff costs, maintenance, and marketing. It reflects a hotel’s financial health – the higher the margin, the more profitable the hotel.

Margins at hotels and other accommodation properties can be manipulated in a number of ways, from reducing expenses to increasing revenue in specific areas to contribute to better overall finances.

With the revenue of the hotel market projected to have reached US$426.40bn by this year worldwide, it’s important to know how you can maximise your share.

This blog will give you a full guide to hotel profit margins and how you can boost the profitability of your hotel or accommodation business.

Why are hotel profit margins important to measure?

There are a few reasons you should be measuring your hotel’s profit margins:

• It gives you a clear indication of the overall financial health of your business. You need to know if you’re gaining or losing money on a regular basis.
• You can use it to compare your hotel with industry benchmarks and any available data you have on competitors to assess where you stand.
• Understanding your profit margins in detail will allow you to make better, more informed, strategic business decisions such as where to invest your money to further improve.

Additionally, the healthier your profit margin the better position you’ll be in if you ever want to sell your business or if unexpected events occur, such as the COVID-19 pandemic.

Boosted profit margins, less work

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How are hotel profit margins calculated?

Hotel profit margins are calculated by determining the percentage of a hotel’s revenue that remains after taking away all the costs associated with running the business, including staffing, marketing, maintenance, utilities, catering, waste, and more.

Hotel profit margins can be calculated in two main stages:

1. Gross Operating Profit (GOP) Margin: This reflects the efficiency of core hotel operations. It’s calculated by subtracting the cost of goods sold (expenses directly tied to room sales) from total room revenue. Dividing this number by total room revenue and multiplying by 100 gives you the GOP margin as a percentage.
2. Net Profit Margin: This is the ultimate profitability metric. It takes the GOP and subtracts all other operating expenses (salaries, utilities, marketing, etc.) from it. Dividing this final number by total hotel revenue (including room revenue and other income streams) and multiplying by 100 reveals the net profit margin as a percentage.

For example, using random sample numbers, if in a given time period your:

• Total revenue equals $120,000
• Cost of goods sold equals $10,000
• Operating expenses equals $55,000
• GOP equals 120,000 – $10,000 = $110,000
• GOP Profit Margin equals (GOP / Total Room Revenue) * 100 = 110%
• Net Profit equals GOP – operating expenses. $120,000 – $55,000 = $65,000.
• Net Profit Margin equals (Net Profit / Total Revenue) * 100 = 54%

Are hotels profitable?

Is owning a hotel profitable? The answer is relative and depends on a range of variables. Some hotels are certainly profitable while others don’t survive long term.

Just like any B2C business, the profitability of a hotel relies heavily on:

• Having a solid business plan
• Implementing effective revenue management strategies
• Ensuring customer satisfaction and building a positive reputation

Of course, this just scrapes the surface and there are full guides on all the aspects of running a hotel business that you’ll need to master to achieve profitability at your hotel. The short answer is yes, hotels are profitable when they are managed successfully.

What is a good net profit margin for a hotel?

If we are talking about a good hotel net profit margin to aim for, most hotels would be happy with a margin of 15-20%.

Very healthy margins lie between 25-35% while the average might be closer to 5-10%.

Generally, luxury hotels and bigger brands can drive a higher margin while smaller properties and independent brands can expect slightly lower margins. 

Typically though, hotels have a lot of fixed costs which can cause profit margins to be lower than a lot of other industries.

What drives profit at a hotel?

How do hotels make money? Hotels can drive revenue and profit through primary and secondary sources.

The primary source of income for a hotel is room sales and the associated packages connected with these reservations. Generally a guest’s biggest expense when staying at a hotel is paying for the room itself.

Secondary sources of income might include food and beverage sales, amenity fees, health and wellbeing services, social classes, event and meeting spaces hires, or ticket sales to local attractions.

Profit comes from being able to sell these services at a high value while keeping costs low, and balancing the expectations and experiences of customers.

How to improve hotel profitability

The first step you can take in your journey towards profit is to perform a hotel profitability analysis. This means taking a deep look into the current state of your business to identify current revenue, costs, and margins. Looking into where money is coming in and going out will help you understand the most important areas to make improvements.

For example, you might find that your room revenue is very high but is being offset by equally high operating expenses. Or perhaps you aren’t generating enough revenue from secondary sources.

But if you’re looking for a general plan, here are the five best ways to boost profit at your hotel.

1. Boost hotel room income

It goes without saying that if you can drive more revenue from your most valuable asset – your rooms – you’ll be on the right track to boosting profit.

There is more to it than simply raising your rates however. Optimising room revenue requires a dynamic pricing strategy which takes into account real-time data, seasonality, competitors, guest trends, and more.

You can also increase your room revenue by adding value via packages, running promotions, and offering extras and upsells. Sometimes guests just need a small incentive to turn them from a looker to a booker and put money in your pocket.

Additionally, if you do some research and guest segmentation, you might be able to target guests who are willing to spend more on premium reservations and be more inclined to purchase more expensive packages.

2. Increase ancillary revenue

Ancillary revenue can be a huge bonus on top of your room revenue. Whether it’s a massage, the gym, transport services, dinner at your in-house restaurant, anything that is not connected to the room revenue can be considered ancillary revenue.

You could even go so far as to produce and sell some of your own products, such as acquiring soaps or linens made locally and taking a commission from their sale.

3. Reduce expenses

Besides pumping up your room revenue, perhaps the biggest impact you can have on your profit is by reducing your hotel’s costs. Since a hotel can incur so many costs, this also means there’s plenty of opportunities to make improvements.

Consider how you spend less on energy, limit your waste, reduce cleaning and maintenance expenses, lower your cost of guest acquisition, boost staff efficiency, and more. 

4. Track important metrics

To measure your progress and keep track of your profitability it’s vital that you’re aware of important performance metrics. 

Make sure you’re regularly keeping tabs on your total revenue per available room (TrevPAR), Gross Operating Profit per Available Room (GOPPAR), cost per occupied room (CPOR), and cost per acquisition (CPA) among others. 

This will help you decide if you need to generate more revenue or reduce the amount you’re spending.

5. Leverage technology

In your endeavours to achieve all of the above, nothing makes it easier than investing in the right technology.

There are tools and solutions that help in all aspects of revenue management, hotel management, and guest satisfaction.

Using technology will allow you to be more efficient, make more informed decisions, gain access to more powerful insights, and implement more effective processes and strategies.

“At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, we are also more efficient in terms of time; we can get more work done.”

Shadi Wijaya,

Corporate Director of Revenue

The Phala Group

Read more

What tools and solutions can boost hotel margins and increase hotel profit?

So what technology is the best to use to boost profit margins at your hotel?

Some of the most effective solutions that will help you sell more rooms, maximise the value of your rooms, increase guest spend, and access smart data include:

• Channel managers: A channel manager automates and optimises your inventory management. It allows you to sell your rooms on as many channels as you wan at the same time, without the risk of double bookings or the need to perform manual or individual updates.
• Booking engines: Booking engines can boost your profit by delivering direct reservations rather than you paying commission fees to third-party channels. You can also use a booking engine to create valuable packages, offer upsells, and entice guests to purchase extras. 
• Payment systems: Payment tools can make it easier and more convenient for guests to pay, and for you to receive your money. This will improve cash flow and reduce abandoned bookings, resulting in greater revenue.
• Pricing intelligence: Pricing intelligence tools provide you with accurate, real-time, market data so that you can be aware of pricing fluctuations and opportunities to maximise your rates.
• Revenue management systems: Revenue management systems are basically like your expert personal assistant, offering optimised recommendations, sending out alerts and notifications, and producing detailed reports.

Revenue optimization in hotels is a comprehensive strategy that accounts for all revenue streams and uses data to enhance the overall revenue performance of the business. It’s a holistic process that hotels can use to effectively manage pricing, inventory, distribution, customer demand, and more to promote revenue growth.

Revenue optimization recognizes and responds to opportunities to not only sell more, but sell more profitably too by using data, analytics, reports to make strategic decisions. Included in this will be key metrics, forecasting models, and trending insights.

Revenue optimization vs revenue management

In terms of definition and practice, there is a difference between revenue optimization and revenue management.

While revenue management is more focused on a hotel’s pricing and availability to maximize revenue, revenue optimization takes a broader approach to include a full range of revenue sources that includes food and beverage, spa services, events, classes, and other ancillary revenues.

Revenue management can be viewed as focusing on short-term tactics such as dynamic pricing and optimized inventory management to maximize room revenue, with revenue optimization taking a longer-term and more comprehensive approach.

In this blog, we’ll give you a full overview of revenue optimization and some ideas on how you can improve it at your hotel.

Why is hotel revenue optimization important?

Hotel revenue optimization is crucial for a hotel if it wants to sustain long-term success. Because hotel revenue optimization prioritizes holistic revenue management with long-term goals, using smart data and analytics, it can be incredibly effective in helping you to achieve profitability.

Hotel revenue optimization ensures that a property or brand is maximizing its profits from all available resources and opportunities. In addition to this, it can also help identify ways to create more efficient processes and improve the guest experience.

By prioritizing revenue optimization, your hotel will be in a stronger position to take advantage of data, trends, and market insights.

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Benefits of pricing and revenue optimization

One of the major benefits of pricing and revenue optimization is that it is based on accurate, up-to-date, data. This is thanks to the advanced technology solutions that exist today such as revenue management systems, central reservation systems, real-time business intelligence tools, channel managers, and more.

There’s a full range of advantages for hotels and hospitality businesses. Here are some of the key benefits:

• Increased profitability: By setting the right room rates and managing inventory effectively, hotels can maximize their revenue without necessarily sacrificing occupancy rates.
• Improved forecasting: Revenue optimization involves analyzing data on past booking trends, competitor pricing, and market conditions. This allows hotels to forecast future demand and adjust their pricing strategies accordingly.
• Competitive advantage: In a dynamic industry like travel, being able to adapt pricing quickly can give hotels a significant edge over competitors.
• Better resource allocation: Revenue management helps hotels predict staffing needs based on anticipated occupancy levels. This ensures they have enough staff on hand during peak periods and avoids unnecessary costs during slower times.
• Data-driven decision making: Revenue optimization relies on data analysis to inform pricing and distribution strategies. This takes the guesswork out of decision-making and allows hotels to make choices based on concrete information.
• Guest segmentation: Revenue optimization tools can help hotels identify different guest segments (e.g., business travelers, families) and tailor their pricing and promotions accordingly.
• Frees up staff time: By automating many aspects of revenue optimization, hotels can free up staff time to focus on other important areas, such as guest service and marketing.

Developing revenue optimization strategies at your hotel

Before you start brainstorming ideas and tactics for revenue optimization, you have to know exactly what you want to impact and how to approach it.

The great thing about revenue optimization strategies is that they can be used across every facet of your hotel which generates revenue. This can be divided into three categories:

1. Primary revenue streams

• Room reservations
• Online Travel Agencies
• Global Distribution System (GDS)
• Corporate/Group Booking’
• Channel Management

2. Secondary revenue streams

• Food and Beverage
• Events and meetings spaces
• Spa and wellness services
• Parking and transportation
• Retail and gift shops
• Recreational activities

3. Upselling

• Room upgrades
• Packages and promotions
• Loyalty programs
• In-Room amenities
• Tours and experiences

In terms of what you need to effectively move the needle in these areas, there are also three major things you can invest in to get the ball rolling:

• Marketing and operational automation
• Sales efficiency
• Proper data collection

Using the right technology, such as a platform like SiteMinder, can make it much easier to get your ducks in a row and understand what strategic decisions will be the right ones for you.

10 revenue optimization ideas for your hotel

When it comes to putting ideas into action and creating strategies, there’s dozens that might prove effective for your particular business. Here’s 10 to get you started:

1. Use dynamic pricing: Dynamic pricing involves adjusting room rates based on real-time demand. During peak seasons or high-demand events, you can raise prices to maximize revenue per room. Conversely, lower prices can attract bookings during slower periods.
2. Perform demand forecasting: Hotel forecasting involves using data and analytics to predict future occupancy rates. This allows you to plan pricing strategies, staffing levels, and inventory management more effectively.
3. Market segmentation: Target different guest segments with specific marketing campaigns and offerings. This caters to their unique needs and preferences, increasing the likelihood of conversions.
4. Package deals: Create bundled packages that combine your room rate with other services like spa treatments, meals, or activities. This incentivizes guests to spend more and increase your overall revenue.
5. Upselling and cross-selling: Upselling encourages guests to upgrade their room or add amenities like breakfast or parking. Cross-selling involves suggesting additional services that complement their stay, such as airport transfers or restaurant reservations.
6. Length of stay restrictions: Implement minimum or maximum stay requirements to optimize occupancy during peak and off-peak periods. For example, you might require a 3-night minimum stay during winter when you’re less likely to get a large volume of bookings if you’re normally a summer destination.
7. Channel management: Utilize a channel manager to streamline your distribution process across various online booking channels. This ensures rate consistency and prevents overbooking.
8. Mobile optimization: Ensure your hotel website and booking engine are mobile-friendly. A significant portion of travelers use smartphones to research and book hotels, so a seamless mobile experience is crucial.
9. Guest reviews and reputation management: Actively solicit guest reviews and address any negative feedback promptly. Positive online reviews significantly influence booking decisions.
10. Referral Programs: Reward loyal guests and encourage them to recommend your hotel to others through referral programs. This is a cost-effective way to attract new customers.

“At first I thought it was just a myth that using SiteMinder could boost revenue. But it turned out to be true. Revenue did increase, we are also more efficient in terms of time; we can get more work done.”

Shadi Wijaya,

Corporate Director of Revenue

The Phala Group

Read more

Taking advantage of hotel revenue optimization software and solutions

Just like there are a huge number of strategies you can adopt to optimize revenue at your hotel, there’s a long list of hotel revenue optimization solutions that will make your job easier.

Understanding the best tools to use and implementing the ones that suit your hotel’s unique needs will give you a headstart towards profitability.

Here’s a few to take note of:

• Channel managers: Channel managers make inventory management and distribution simple, while also providing key performance reports.
• Revenue management systems (RMS): RMS’ provide sophisticated, data-led, revenue management analytics and recommendations.
• Booking engines: Booking engines enable a direct relationship with guests and turn your website into a revenue generator.
• Customer relationship management systems (CMS): Specifically manage interactions and communications with guests and potential customers.
• Global distribution systems (GDS): A GDS will give you the best access to thousands of travel agents and wholesalers to help diversify your reach and potential revenue.
• Business intelligence tools: Business intelligence tools will provide accurate, real-time, market data so you can keep a keen eye on your own price as well as that of your closest competitors.
• Upsell and other guest-focused apps: Hotel apps can streamline upselling, communication, check-in, room service, and more to ensure guests are happy and also aware of their value-added purchase options.

Yet, it’s important to consider that the demands of revenue management have drastically changed. With rising costs, evolving guest behaviours and the varying types of accommodation businesses that have emerged, revenue management now means different things to different properties.

For instance, Diego De Ponga, former Corporate Director of Revenue Management at Palladium Hotel Group and now CEO at Port Hotels, believes the classic definition of revenue management is unrealistic in today’s market, where selling inventory demands more flexibility.

“I define revenue management as a way for accommodation properties to earn more,” says De Ponga. “These days, it would be impractical to use the classic definition, as I will sometimes sell at a less ideal time, at the right price. If you’re a revenue manager for a property with 100 rooms, your task is to maximise profits from all those rooms, regardless of market conditions.”

De Ponga’s nuanced perspective on how revenue management works in today’s landscape is a result of years of experience in the field. But for many of the world’s independent accommodation providers, revenue management remains unfamiliar territory, often marked by misconceptions and misguided practices.

Overwhelming demands

The lack of revenue management know-how among many accommodation providers is partly due to some only beginning to grasp the basics of managing a property – a complex undertaking in itself.

“Some owners of accommodation properties are experienced business people, but new to the day-to-day operations of a hospitality business,” says Tamie Matthews, CEO and Founder of RevenYou, a consultancy for independent hotels. “While they may be excited to be in charge of the business, everything is new. They are having to learn everything all at once.”

Revenue management is therefore considered a tedious, if not optional, exercise for these time-poor owners preoccupied with other aspects of running a hotel. In fact, many owners of small independent properties we spoke with confirmed that they were ‘too busy’ to pursue learning about revenue management, given the overwhelming demands of their businesses.

It goes without saying, however, that many thousands of properties around the world, particularly smaller independents, are already implementing measures to drive revenue – without even knowing it.

According to De Ponga, hotel software solutions such as channel managers and revenue management systems (RMSs) have democratised the practice, owing to the rise of online travel agencies (OTAs).

“I can’t imagine our job without a channel manager given all the OTAs out there. This tool gave revenue managers the opportunity to develop distribution strategies. RMSs allowed us to go deeper in analysis,” De Ponga shares.

The shift to a profit-oriented paradigm

Despite the availability of technology, the lack of a deeper, more strategic understanding of revenue management among property owners has often led to counterproductive practices that leave money on the table and hamper the growth of their businesses.

Speaking from her experience, Matthews notes the outdated approaches that some owners would take when it comes to their commercial strategies. “Prior to working with RevenYou, we found that many owners used one price for 365 days. They would sell the same price to everyone and assume that 100% occupancy was the ultimate goal. They didn’t know who they were competing against nor did they have a list of events that could drive demand and ultimately increase profit. They were selling their own accommodation within the silo of their own making.”

This perilous, misguided approach comes at a time when revenue management is moving towards a focus on profitability. With rising prices, accommodation providers across all segments are compelled more than ever to consider all costs and opportunities associated with their services and amenities.

“Revenue management is about optimising all available spaces,” says Annemarie Gubanski, CEO and Founder of Taktikon, a revenue and distribution consultancy. “It can be rooms, it can be chairs, it can be treatment rooms or meeting rooms … Not only do we need to optimise every square metre, but we also need to make sure that the whole property remains profitable. That, for me, is the optimum goal of revenue management.”

As revenue management transcends room occupancy and pivots to a profit-oriented paradigm, it’s clear that accommodation owners can no longer afford to ignore the critical role of the practice in the current landscape.

“The primary objective of revenue management should be profits, not just income, especially now that you have to factor the costs of distribution. Profit is the DNA of the business and needs to be led by both the general manager and the revenue manager,” says De Ponga.

‘

A change in mindset

The road to adopting revenue management may seem long and winding for accommodation owners and their teams, already encumbered by the day-to-day tasks of hotel operations. There are, however, practical ways to gradually embrace this practice as it moves towards a profit-oriented paradigm, apart from relying on technology.

It all starts with a change in perspective. For Gubanski, accommodation providers need to leave behind the old mindset that revenue management is an exclusive club for large brands if they are to fully realise the profitability of their businesses.

“One of the misconceptions surrounding revenue management is that it’s not for small properties, that they don’t really need revenue management, more so if their property is not in a dynamic market, but that certainly doesn’t matter. You can apply revenue management to any type of property. And, it’s the smaller properties that actually do need it more because they have to make sure that every space is optimised.”

Other teams at a property would also do well to understand the fundamentals of revenue management. If the practice now entails maximising all available spaces and services that hotels can offer, a concerted effort among departments to understand the ‘whys’ and ‘hows’ of revenue management is increasingly vital.

For property owners and revenue managers, this means reaching out and engaging with teams such as the front desk and F&B, who are pivotal in bringing more revenue and boosting the hotel’s profitability.

De Ponga says, “We need to open ourselves up to the hotel and explain revenue management in an easy way. Speak with other departments, including the front office, because they manage the upselling and cross-selling strategies that can give you two to three percent of your RevPAR. You need to teach them how to control pricing when upselling or cross-selling, or even ask them: ‘Why does our spa have the same price during the whole season?’”

A booking engine comparison is the process of evaluating different platforms to understand their features, functionalities, and suitability for a specific hotel. It’s essential because the right booking engine can help you:

• Increase direct bookings by providing a seamless and user-friendly experience for guests to book directly on your website.
• Boost revenue by reducing reliance on third-party channels and their associated commissions.
• Enhance guest experience by offering a smooth and efficient booking process.
• Streamline operations by integrating with your existing systems and automating tasks.

Comparing booking engines is important because hotels can determine the best system that not only improves the guest booking experience through an intuitive user interface, but also provides reliable support and integration capabilities, ensuring smooth operations and maximising direct revenue opportunities in a competitive market.

Main considerations when comparing booking engines

Choosing the right booking engine is a pivotal decision for any hotel. The best booking engines help generate bookings, true, but they should also enable a seamless guest experience, optimising revenue, and streamlining operations.

To make an informed choice, it’s essential to dig deeper into the key factors that differentiate booking engines and determine their suitability for your unique needs.

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Booking engine comparison element 1: Free trial

A free trial is an excellent way for you to understand the functionality and fit of a booking engine with your hotel’s operations without any upfront investment.

This period allows you to evaluate how intuitive the system is for your staff and guests, how well it integrates with your existing software, and whether it improves your booking process and overall efficiency.

Always opt for a trial that gives you full access to the features most important to your success—this way, you can make a comprehensive assessment.

Booking engine comparison element 2: Reviews from other hoteliers

Reading reviews from other hoteliers who have already implemented the booking engines you’re considering can provide invaluable insights.

These reviews can highlight the strengths and potential drawbacks of each system, offering perspectives from real-world use that you might not have considered.

Look for feedback on aspects like customer support, ease of use, system reliability, and how well the features align with the claims made by the provider.

Booking engine comparison element 3: Clear results from case studies

Case studies are a robust source of detailed information on the effectiveness of different booking engines. They provide narrative evidence of how various systems have been implemented in settings similar to yours, the challenges faced, and the outcomes achieved.

Look for case studies that address properties similar in size or style to your own to understand how the booking engine performs under similar circumstances. Pay special attention to metrics like changes in direct booking rates, operational efficiency improvements, and any financial metrics like return on investment.

Booking engine comparison element 4: Pricing and fees

Consider whether your chosen booking engine requires monthly or annual fees and what these unlock in terms of features.

Assess whether the engine charges a percentage of each booking or a fixed fee per transaction, as this will influence your cost per acquisition and overall profitability, particularly during peak seasons. Be aware of any one-time setup costs associated with initial configuration, as these can significantly affect your budget.

Research any additional charges for extra features or services, such as channel management, custom integrations, or advanced reporting capabilities, which might be necessary for your operations – and if they’ll cost you more to enable.

Booking engine comparison element 5: Support and training

Effective booking engines include multiple support channels like phone, email, live chat, and/or a dedicated helpdesk to resolve any issues swiftly.

Reputable vendors provide ample training resources such as FAQs, tutorials, and user guides should be available to help your staff quickly learn to navigate the system efficiently, reducing the learning curve and accelerating operational effectiveness.

Ongoing assistance and regular updates are important to keep the software in line with the latest features and security standards, ensuring your technology stays current with industry trends and guest expectations.

Hotel booking engine comparison chart

There’s a broad swathe of booking engines available in today’s market. To help you find the right one for you, we’ve summarised some of the best and most popular options below.

Booking engine comparison: 5 must-have features

The sign of an excellent booking system for your hotel is built on the cornerstones of these five crucial elements:

Property management system integration

A good booking engine fits perfectly with your property management system. This means all your bookings and room availability updates automatically and in real-time. No mix-ups, no extra hassle.

Customisable style

Your booking engine should feel like an extension of your hotel’s style. It should be easy to adjust so it looks consistent on your website. This helps build trust with your guests and keeps them from leaving the site without booking.

Multi-language and multi-currency support

Your guests come from everywhere, and your booking engine must be able to cater to that. Make sure it lets guests book in their own language and pay in their currency. It’s all about making them feel welcome and making booking easy, no matter where they’re from.

Safe and simple payments

Taking payments online needs to be safe. Your booking engine should protect your guests’ payment info with top-notch security. Plus, it should let guests pay their way, whether it’s with a credit card, PayPal, or something else. This keeps things smooth and safe for everyone.

This is so crucial, in fact, that SiteMinder has its own dedicated SiteMinder Pay process to keep everything secure.

Approachable analytics and reports

You must know what’s working and what isn’t to keep ahead of the competition. Choose a booking engine that gives you detailed but straightforward reports about how guests use your booking site. Use this information to make things even better, attract more guests, and boost your sales. Knowledge is power.

Booking engine comparison points

No two hotels are the same, and a booking engine suitable for one may not be suitable for another – particularly if they’re appealing to and trying to attract the bookings of distinctly different audiences. Here’s what to look out for based on your hotel type:

Luxury hotel

For luxury hotels, the booking engine should provide an exceptional and seamless user experience that reflects the opulence and high standard of service offered at the hotel. Key features include:

• Customisable upselling options: Enable personalised room upgrades, special services, and exclusive packages right at the point of booking.
• High-end security: Ensure top-tier data security to protect high-net-worth guest information.
• Concierge service integration: Offer guests the ability to book spa appointments, dining reservations, and other amenities directly through the booking engine.

Resort

Resorts, often offering a wide range of activities and amenities, need a booking engine that can handle complex offerings simply. Important features include:

• Package customisation: Guests should be able to tailor their stay by selecting room types, meals, activities, and spa services in one seamless booking experience.
• Visual appeal: High-quality images and videos showcasing the property and its amenities are crucial to entice bookings.
• Extended stay discounts: Encourage longer stays with automated discounts or special package rates for extended periods.

Motel

Motels need straightforward and efficient booking engines, considering the often short-term and last-minute nature of bookings. They should look for:

• Mobile optimisation: Ensure the booking engine is highly functional on mobile devices, catering to travellers on the go.
• Speed and simplicity: A quick, hassle-free booking process with minimal steps is essential.
• Location features: Easy access to maps and location-based services to assist travellers in finding the motel easily.

Boutique hotel

Boutique hotels, known for their unique character and personalised service, should choose a booking engine that allows them to showcase their individuality:

• Brand storytelling: Ability to incorporate the hotel’s theme, story, and style into the booking experience.
• Tailored experiences: Options for guests to customise their stay based on interests or themes specific to the hotel.
• Visual and media integration: High-quality visuals and media that highlight the unique décor and ambience.

Small hotel

Small hotels need a booking engine that is cost-effective yet powerful enough to handle all operational scales. For example, Little Hotelier’s booking engine focuses on:

• Ease of use: Simple and intuitive interface for both guests and staff.
• Direct booking incentives: Features that encourage guests to book directly, such as special rates or freebies.
• Integration capabilities: Easily integrates with other systems like small-scale PMS or channel managers to streamline operations.

Compare booking engines: Which is best?

Every hotel is different, with a unique appeal to unique audiences. Your choice of booking engine must reflect your own independent, individual place in the wider industry.

In comparing booking engines, consider how each option enhances your hotel’s unique brand and operational efficiency.

Remember, the best choice is one that not only integrates seamlessly with your existing systems but also improves the guest experience from browsing to booking. As you assess crucial features, think about how they align with your hotel’s vision and growth objectives.

Particularly in recent years, when hotels have at times been forced to confront a reality without cash flow, revenue management has been thrust to the forefront of every hotelier’s mind. Revenue managers, as a result, have been tasked with the critical role of delivering effective pricing and distribution strategies amid evolving trends and market demands, no matter the economic climate.

But while revenue management as a discipline has transformed since it found its way into hotels, there appears to be a widening gap between the heightened demands of the practice and the shrunken pool of talent within the industry. Below is a chart that illustrates this trend.

The gap, observed and experienced by many, suggests that the industry has far from realised the full potential that the practice holds for today’s accommodation businesses.

For us to understand the current state of hotel revenue management, we spoke with three prominent hotel industry professionals to share how the practice has transformed over time, as well as the challenges and opportunities that have emerged from this transformation.

A brief history of hotel revenue management

Trevor Stuart-Hill, the co-author of the first college textbook on revenue management for hotels, and founder and president of global revenue strategy firm Revenue Matters, explains that the hotel industry’s adoption of revenue management began with the introduction of computer systems for demand forecasting, following the airline industry’s successful implementation of the practice.

“The exact genesis of yield management (now revenue management) in the hospitality sector is hotly debated,” says Stuart-Hill. “However, Marriott was one of the pioneers in the hospitality industry to develop computer models designed to support revenue decision-making, so it is primarily cited as the first.”

Stuart-Hill points out that revenue management initially fell into the hands of the reservation manager, particularly in the early 1990s, when reservation managers took on the special task of explaining the emerging idea of dynamic pricing to consumers.

It was then that reservation-turned-revenue managers began assuming the responsibility of distribution, as the arrival of online travel agencies (OTAs like Booking.com) ushered in a transformative approach to hotel distribution. Eventually, revenue management transformed into a more proactive discipline in the 2000s, prompted by the global economic crises that defined the decade.

“The dot.com bubble burst in 2000, the housing bubble burst in 2007 and companies like Lehman Brothers collapsed. These events are important to the evolutionary history of revenue management, as revenue managers were tasked with helping find additional revenue sources for their properties,” explains Stuart-Hill.

Yet, despite the importance of their role, it wasn’t until the mid-2010s that revenue managers began stepping into executive leadership positions at hotels. In 2016, a study by Dr. Laila Rach titled Portrait of Revenue Management Leadership found 65% of revenue practitioners had titles such as ‘vice president’ or ‘senior vice president’.

Fast forward to 2020, the “Great Reset” prompted by the pandemic rapidly changed how consumers and businesses embraced technology. As the pandemic brought travel to a standstill and gave rise to “quarantine hotels”, revenue managers had to rethink their strategies, starting with technology, in order to sustain their businesses.

Holistic revenue management

Today, hotel revenue management has transformed into a holistic discipline, no longer confined to achieving rate parity or adjusting room rates. Derek Martin, CEO and Founder of data analytics company TrevPAR World Group, considers revenue management as integral to a hotel’s commercial success today.

“Revenue management has actually become the lifeline and the heartbeat of a hotel,” says Martin. “When you look at revenue management holistically, it’s no longer just about the rooms. It is about the entire business; its costs, performance and profitability. It’s become much more of a commercial function than just a revenue management function.”

Martin attributes this change not only to the widespread adoption of the Internet, which has turned hotel commerce into a 24/7 operation, but also to the rise of big data. He adds that with advancements in hotel technology, revenue managers now have the opportunity to be even more strategic with their practice.

“We’ve got so many data touchpoints when it comes to hotel technology and systems that a single reservation can be accessed, processed and leveraged on up to ten occasions before the guest even checks in. But we also need to remember that while technology is great, we must make sure the right technologies align for the right property. The alignment of the operational and the strategic elements is what I call modern-day revenue management.”

The struggle for talent

Despite the abundant need and desire for revenue management expertise, the hotel industry currently faces several challenges when it comes to building the talent required for today’s practice.

“I am rather concerned about the standard of experience currently on display in the industry,” says Tamie Matthews, CEO and Founder of RevenYou, a consultancy for independent hotels. She points to the scarcity in holistic experience among revenue managers at a time when the practice has taken an equally holistic approach.

“While we now have people who can move a price up or down, use a revenue management system and analyse data, they lack the experience in driving production, creating a profitable distribution strategy and operating the multitude of systems we use daily to create revenue,” Matthews explains.

The ongoing shortage of revenue managers in hotels, exacerbated by the recent pandemic which prompted a brain drain of revenue practitioners, also remains a pressing concern. With their transferable skills in data analytics, hotel revenue managers have been drawn to pursue opportunities outside the accommodation industry where they feel more fairly compensated for their high-in-demand skills.

Furthermore, a lack of executive support has often led to innovative revenue ideas being overlooked, particularly those from the younger revenue managers. Martin attributes this dynamic to the disparities existing between senior hotel leadership and the nature of today’s practice.

“Old-school leaders may not fully understand revenue management, but it’s not their fault. Many have been general managers for decades, while today’s approach to revenue management is relatively new,” Martin explains. “As revenue management gets explored more, the talent shortfall will get worse. We will not be able to generate talent quick enough.”

Bridging the gap towards a true revenue culture

Amid these challenges that hamper revenue management’s potential, both revenue managers and the hotel industry at large must be proactive in order to drive the practice forward.

For Matthews, a revenue manager’s openness and inquisitive mindset are necessary to raise the level of revenue experience in the industry.

“A revenue manager who thinks they are indispensable because they can change pricing daily is a revenue manager living in the past. To ensure revenue management continues to grow and evolve, revenue managers need to expand their knowledge base. They must adopt a growth mindset and a desire to learn,” she explains.

This need to broaden a revenue manager’s role beyond pricing is echoed by Martin, who sees distribution as an important skill for any revenue practitioner.

“We’re looking for a revenue manager that has a full understanding of operations, cost control and, more importantly, the distribution landscape. Distribution is 80% of revenue management right now. We can come up with brilliant ideas, but if we don’t know how to distribute those ideas to the greater world or the Internet, no one’s going to book and find us,” he explains.

In addition to the technical skills required to keep pace with today’s revenue management, soft skills are equally important. Stuart-Hill emphasises that communication and collaboration are essential for revenue managers to achieve their revenue goals.

“Those with a strong foundation in revenue management, who also excel in active listening, communication and persuasion, find themselves defining and driving commercial strategy within their organisations,” he shares.

From a broader lens, structural and cultural changes within the industry are also vital in driving revenue management forward. For one, Martin suggests establishing a dedicated role for a revenue manager rather than diluting their responsibilities across different functions.

“A data geek that can speak is the ultimate revenue manager because they can tell the story about your data. If you’re crossing over their responsibilities with sales, marketing or front office reservations, where 20% goes to revenue and 80% goes to the operational side of the business, the hotel falls over. You need to have specialists. Revenue management is not a ‘ten-minutes-a-day’ job,” he explains.

He also advocates for fair compensation, highlighting the current discrepancy between the valuable contribution of revenue managers and their relatively low salaries.

“Revenue managers have one of the lowest payrolls in the hospitality space. The way that we think about the salaries of revenue managers is actually an insult to smart people. We need intelligent geeks that can speak and know their worth,” he adds.

In the end, Martin believes that fostering a culture that rallies behind revenue managers and their ideas is key to further advancing the current practice of revenue management.

“A true revenue culture is achieved when you have buy-in from the top to the bottom, with everyone sharing a common goal to achieve targets and meet stakeholder expectations. So, if we truly want to make revenue management the forefront of our industry, we need to give our revenue managers an opportunity. Let them speak, listen to them and buy into their ideas. Just because we’ve been doing things the same way doesn’t mean we have to continue doing so. Why can’t we adopt another ‘Great Reset’ mentality?”

The Getaroom Extranet is a dedicated online platform designed specifically for accommodation providers to manage their property listings on the Getaroom distribution channel. This tool allows you (hotel managers and owners) to update your inventory, set room rates, manage bookings, and access valuable insights about your property’s performance.

In this blog we’ll provide a full guide to Getaroom and how your hotel can succeed with the platform.

Why should you use Getaroom hotel extranet?

As the hospitality industry evolves, leveraging online platforms like the Getaroom hotel extranet becomes indispensable for staying competitive. While there are hundreds of OTAs and hotel search engines to list your rooms on, Getaroom offers many of the same benefits – with one or two unique extras that others can’t always compete with:

1. Increased exposure: Accessing the Getaroom extranet expands your hotel’s visibility to a broader audience, potentially leading to more bookings in addition to those you can secure through your direct booking engine.
2. Real-time inventory management: The platform allows for immediate updates to room availability and rates, enabling better occupancy and revenue management.
3. Direct control over listings: You can directly manage the details of your property’s listing, including images and amenities, ensuring guests see the most accurate representation of your hotel.
4. Insights and analytics: Getaroom offers valuable data on your hotel’s performance, aiding in informed decision-making for pricing and marketing strategies.
5. Efficiency and time savings: Centralising booking management saves time and reduces administrative tasks, allowing you to focus on enhancing guest experiences.
6. Access the value-conscious audience: Getaroom is built around being able to offer discounts to potential guests who book rooms at the last minute that otherwise would remain empty.
7. Reach out to the business audience: While Getaroom started as a consumer travel website, its primary focus these days is business-to-business partnerships. Working with Getaroom means being able to secure the valuable business travel market that much more easily.

In short, Getaroom offers another avenue for your hotel to grow its revenue and boost its booking numbers, increasing your visibility where it counts and providing you with the opportunity to reach guests who are seeking out a great deal and are happy to fill otherwise non-productive rooms.

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Who owns Getaroom?

Getaroom was founded by Bob Diener and Dave Litman, who are also the founders of Hotels.com. Over the years, Getaroom has become known for providing hotel booking services primarily to consumers and travel agencies.

Getaroom was acquired by Court Square Capital Partners, a private equity firm, in 2018. Then, in 2021, it was bought from Court Square Capital Partners for about $1.2 billion by Booking Holdings, who owns the Priceline brand.

As a result, it is now part of a Priceline Strategic Partnership, and under the Priceline brand.

Getaroom Extranet Login: How it works for hotels

The Getaroom Extranet login is similar to many other hotel booking site extranets, such as Expedia or booking.com. You must create a unique hotel account. Your Getaroom hotel login should not be confused with the standard guest account login that can be accessed via the website.

Use your Getaroom hotel credentials and then sign in at the dedicated extranet login page.

Once you’ve logged in, you can manage your Getaroom-specific listings through your dashboard, check on recent bookings and guest analytics, and make updates to your availability calendar as necessary.

“SiteMinder’s data shows me how demand evolves, and which offers or channels are doing especially well. Having these insights makes it easier to double down on what’s working and adjust our approach on slower days.”

Jon Murphy,

Consultant Revenue Director

Kaleidoscope Collection

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Getaroom reviews: Is Getaroom legit?

Yes, Getaroom is a legitimate and established entity in the travel and hospitality sector, for both those booking rooms and those listing them. It was co-founded by Bob Diener and Dave Litman, the founder of Hotels.com – it’s hard to argue with that in terms of legitimacy.

As Getaroom is built on providing competitive rates and special deals, focusing on value offers for last-minute bookings, potential guests can sometimes ask if the prices are too good to be true. However, this concern is usually short lived, and Getaroom has gained a reputation for being a reliable service for booking a variety of accommodations, from budget-friendly hotels to luxury stays.

Airbnb advertising primarily involves promoting individual accommodation listings and experiences hosted on the Airbnb platform to potential guests through various marketing channels. This can include both efforts by Airbnb itself to attract users to its platform, and individual hosts promoting their own Airbnb properties.

Can you advertise on Airbnb?

Yes, hotels can advertise on Airbnb by listing their rooms or properties on the platform, much like individual hosts do with their accommodations. Airbnb is not just for small bed and breakfasts anymore. Medium sized hotel brands can grow a significant revenue stream by promoting their Airbnb listings, considering how popular the platform is among travellers.

Here are just a few of the benefits of advertising listings on Airbnb:

• Global visibility. With millions of users worldwide, listing on Airbnb increases a hotel’s international exposure, making it visible to a global audience looking for unique and localised travel experiences.
• Diverse demographics. Airbnb attracts a wide range of users, from budget solo travellers to luxury holiday seekers, offering hotels the opportunity to tap into markets they might not reach through other channels.
• Reviews and recommendations. Airbnb’s built-in guest reviewing systems offer a powerful opportunity for hotels to stand out from competitors with strong social proof points that are unique to Airbnb.
• Unique selling propositions. Hotels can highlight their unique offerings, such as themed rooms, historical significance, or special amenities, to stand out on Airbnb where other platforms may not place the same emphasis or allow guests to search for such specific elements.
• Cost-effective marketing. Listing on Airbnb can be a more cost-effective marketing strategy compared to traditional advertising, with fees primarily commission-based, aligning costs directly with bookings.
• Meeting expectations. Airbnb is such a popular platform that some travellers never step outside of it, even to Airbnb competitors. Failing to advertise on Airbnb can mean never being found at all.

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How much does it cost to advertise on Airbnb?

Advertising on Airbnb for hotels involves listing fees and commission structures rather than traditional advertising costs. Typically, Airbnb charges hosts (which would include hotels) a 3% fee per booking. This fee is calculated from the booking subtotal (the nightly rate plus cleaning fee and additional guest fee, if applicable, but excluding Airbnb fees and taxes) and is automatically deducted from the host’s payout.

Is Airbnb free to advertise?

Technically, Airbnb could be considered free to advertise on, as there are no upfront fees charged for your listings. However, getting a booking through Airbnb still means that you must pay the aforementioned commission – something that is avoided when you get a direct booking through a dedicated booking engine.

How to advertise your Airbnb listings

Advertising Airbnb listings, especially for hotel owners and operators with multiple properties or those managing medium-sized groups and chains, requires a strategic and organised approach.

Step 1: Create a cohesive Airbnb brand presence

Establishing a cohesive brand presence on Airbnb is vital for hotel chains and property managers. This involves unifying your listings under a single brand identity that resonates with your target audience, stands out in a crowded marketplace, and promises consistency of experience no matter when, where or how a guest books.

• Brand story and values: Start by defining your brand’s story, values, and what makes your properties unique. This could include your commitment to sustainability, luxury, heritage, or providing local experiences. 
• Visual identity: Ensure all your listings feature high-quality, consistent photography that reflects your brand’s style and aesthetic. Use a similar layout, filters, and angles to create a visually cohesive look.
• Consistent messaging: Develop a template for property descriptions that aligns with your brand voice. Highlight unique selling points while maintaining a consistent tone and style that echoes your brand’s personality.
• Brand touchpoints: Customise every guest touchpoint, from the booking confirmation message to the check-out instructions, to reinforce your brand identity and create a memorable experience.

Step 2: Audit and optimise new and existing listings

Optimising your Airbnb listings is an ongoing process that can significantly impact visibility and booking rates. Regular audits ensure your listings remain competitive and appealing to potential guests.

• Listing audit: Regularly review your listings to ensure accuracy and completeness. Check for any outdated information, missing amenities, and ensure high-quality visuals are used.
• SEO optimisation: Incorporate relevant keywords into your titles and descriptions to improve search visibility on Airbnb and search engines. Research popular search terms related to your location and property type.
• Pricing strategy: Use competitive pricing strategies that reflect market demand, seasonality, and local events. Consider implementing dynamic pricing tools for real-time adjustments.
• Guest feedback: Actively solicit and review guest feedback to identify areas for improvement. Update your listings to address common concerns and highlight enhancements.

Step 3: Implement targeted marketing campaigns to reach specific audiences

Developing targeted marketing campaigns allows you to connect with specific segments of your potential guest base, tailoring your message to their unique preferences and needs.

• Audience segmentation: Identify key guest segments based on demographics, interests, and travel behaviours. This could include families, business travellers, adventure seekers, or cultural enthusiasts.
• Personalised campaigns: Create marketing campaigns tailored to each segment, highlighting aspects of your properties that resonate most with them. Use storytelling to showcase the experiences and amenities that set your properties apart.
• Multi-channel approach: Leverage various marketing channels, including social media, email marketing, content marketing, and partnerships, to reach your audience where they are most active.
• Special offers and promotions: Run targeted promotions, such as seasonal discounts, last-minute deals, or packages that include local experiences, to incentivise bookings and attract attention.

Step 4: Review and improve using data and analytics

Utilising data and analytics is crucial for understanding performance, making informed decisions, and continuously improving your Airbnb strategy.

• Performance metrics: Regularly monitor key performance indicators (KPIs) for your listings, such as occupancy rates, average daily rates (ADR), booking lead times, and guest satisfaction scores.
• Analytical tools: Use Airbnb’s built-in analytics tools and consider third-party analytics software for deeper insights into your listing performance and market trends.
• A/B testing: Experiment with different aspects of your listings, such as titles, descriptions, photos, and pricing, to see what resonates best with your target audience and leads to higher conversion rates.
• Continuous learning: Stay informed about changes in the short-term rental market, guest preferences, and Airbnb platform updates. Use these insights to adapt and refine your strategy over time.

What works for advertising your Airbnb?

Every hotel is unique. What works for one hotels’ Airbnb advertising strategy may not work for yours. The key is to be willing to experiment to find the sweet spot for your individual audience. This is why taking an analytical, scientific approach to Airbnb advertising is so crucial for success. If you don’t measure, you won’t be able to manage.

“We now save up to 100 hours of work per month, and our bookings increased by 60% in the first 12 months of using SiteMinder. As a result, we have been able to increase both our ADR and occupancy rates.”

Sun Tseng,

Reservation Assistant Manager

Fuli Hot Spring Resort

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Airbnb advertising examples

Advertising Airbnb listings for hotels involves highlighting the unique features and experiences that differentiate them from traditional Airbnb homes. Here are a few examples tailored for hotels:

Example 1: Boutique Urban Hotel with Rooftop Lounge

Chic Boutique Hotel in the City’s Heart – Exclusive Rooftop Lounge Access

Experience the pulse of the city from our boutique hotel, where contemporary design meets unparalleled service. Each room artfully combines luxury with comfort, offering a sanctuary amidst the urban hustle. Ascend to our exclusive rooftop lounge for panoramic city views, signature cocktails, and a vibrant atmosphere. Situated in the cultural epicentre, our hotel is the gateway to exploring the city’s finest galleries, eateries, and nightlife.

Photos: Showcase the hotel’s unique design elements, luxurious rooms, and the bustling rooftop lounge with cityscape views. Include images of the personalised guest services and amenities.

Special Features: Emphasise the rooftop lounge, central location, bespoke concierge services, and curated local experiences available to guests.

Example 2: Historic Hotel with Modern Luxuries by the Sea

Iconic Seaside Hotel – Where History Meets Modern Elegance

Step back in time with a stay at our iconic hotel, gracefully standing by the sea for over a century. Merging historic charm with modern luxury, our rooms offer a timeless escape with breathtaking sea views. Indulge in gourmet dining at our oceanfront restaurant, or unwind at our state-of-the-art spa. Located on the pristine coastline, our hotel is a haven for those seeking tranquillity and rejuvenation.

Photos: Highlight the hotel’s historic facade, elegant rooms with sea views, gourmet dining experiences, and luxurious spa facilities. Capture the essence of the serene location.

Special Features: Focus on the hotel’s historical significance, modern amenities, gourmet dining options, spa and wellness facilities, and direct beach access.

Example 3: Eco-Friendly Resort in a Tropical Paradise

Sustainable Luxury Resort – Your Eco-conscious Escape in Paradise

Embrace sustainability without compromising on luxury at our eco-friendly resort, nestled in a lush tropical paradise. Our commitment to the environment is reflected in every aspect, from eco-designed rooms to farm-to-table dining experiences. Explore the natural beauty of our surroundings with guided eco-tours, or relax at our organic spa. Our resort offers a harmonious blend of luxury, sustainability, and authentic local experiences.

Photos: Display the eco-friendly design elements, luxurious yet sustainable rooms, organic dining options, and natural surroundings. Include visuals of eco-tours and spa treatments.

Special Features: Highlight the resort’s sustainability initiatives, organic spa, farm-to-table dining, eco-tours, and activities promoting local culture and conservation.

Despegar is an online travel company based in Latin America. It operates a platform that allows users, primarily speakers of Spanish and Portuguese, to search, book, and manage flights, hotels, and other travel-related services. It also offers listings in English, used by Despegar USA users. Founded in 1999, Despegar has grown to become one of the largest travel agencies in the region, serving customers through its website and mobile app.

In English, the meaning of ‘despegar’ is to “take off” or “lift off” – very appropriate for an online travel agency.

Is there a Despegar app for hotels?

Despegar offers a mobile application that encompasses a wide range of travel services, including hotel bookings and Despegar check-ins. This app allows users to search for and book hotels, alongside other travel-related services such as flights and vacation packages. 

It’s designed to provide a convenient and accessible platform for travellers to manage their accommodations and other travel needs directly from their mobile devices. The app is aimed at enhancing the user experience by offering features like detailed hotel descriptions, customer reviews, and the ability to compare prices and amenities, making it easier for travellers to make informed decisions about their stay.

Currently, there isn’t an app specifically for hoteliers from Despegar, but it’s possible to manage listings on the platform via the Despegar website or through your channel manager (such as Siteminder).

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Why should you use Despegar?

Hoteliers should consider using Despegar for several compelling reasons, each aimed at enhancing their visibility and boosting their business in the competitive Latin American travel market:

Boost your visibility

Think of Despegar as a prime billboard space in the digital travel landscape. Listing your hotel here puts you in front of a vast audience eager for travel experiences. It’s an effective way to enhance your hotel’s visibility and appeal to the Latin American market.

Targeted exposure

Despegar offers tools that help you showcase your hotel to the travellers most likely to book with you. Whether it’s catering to families in search of holiday destinations or professionals looking for convenient city accommodations, Despegar helps you connect with your ideal guests in Latin America.

Simplified management

The platform is designed for ease of use, allowing you to manage your hotel’s details, from availability to pricing, effortlessly. This user-friendly approach ensures you can keep your listing up-to-date with minimal hassle.

Valuable insights

Despegar provides access to insights into traveller preferences and behaviours, enabling you to tailor your offerings more effectively. These data-driven insights can be instrumental in refining your services and staying ahead in the competitive hospitality market.

Secure transactions

With Despegar, the booking and payment process is streamlined and secure, offering peace of mind to both you and your guests. This reliability enhances the overall booking experience, contributing to guest satisfaction and loyalty.

Partnering with Despegar offers a blend of visibility, targeted marketing, operational ease, and valuable market insights, making it a smart choice for hoteliers looking to expand their reach and streamline their operations in the vibrant Latin American travel market.

Despegar review: Is Despegar legit?

Despegar is a legitimate and well-established online travel agency that operates primarily in Latin America. Since its founding in 1999, Despegar has grown to become one of the leading travel platforms in the region, offering a wide range of travel services including hotel bookings, flight reservations, and vacation packages. 

The company is known for its reliable service, user-friendly website and app, and a broad selection of travel options, catering to the needs of various travellers. Despegar is publicly traded and has built a strong reputation over the years for its commitment to customer satisfaction and security, making it a trusted choice for travellers and hoteliers alike.

How to use the Despegar login extranet

Despegar login step 1: Set up a Despegar hotelier account

To use the Despegar extranet, you’ll first need to set up a hotel-side account with them. Head to the Despegar website to create an account, or if you already have one set up, ensure you can login in at their extranet login portal.

Despegar login step 2: Set up your property listings

Much like other OTAs, Despegar allows you to enter detailed information about your property and its listings, including name, address, amenities, available rooms, rates, services, and photos. Notably, it’s a good idea to provide listing descriptions in Spanish, Portuguese, and English to ensure that travellers interested in your hotel are serviced in their preferred language.

Despegar login step 3: Set availability and rates

Enter your room availability calendar and rates, ensuring that these match the availability of these listings on other platforms. These should be updated regularly based on the season and demand. Again, ensure that you have rates available in South American currencies wherever possible.

Despegar login step 4: Respond to bookings and inquiries

Despegar allows hoteliers to respond to inquiries within their extranet. You will receive notifications when bookings occur.

From there, you can use the reporting tools in Despegar to optimise your listings and ensure that you are getting the best possible exposure and conversion for your hotel. Many hoteliers prefer to update their listings across all OTAs from a single channel manager, to ensure that availability, rates, photos, details, special promotions and more are consistent across all their platforms – rather than having to update every single one manually.

“With SiteMinder’s platform, we can reach more points of sale and boost our presence in key markets. We are more efficient and we can now reach more locations while taking the same steps.”

Javier Aranda,

E-commerce Senior Manager

Palladium Hotel Group

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Benefits of integrating your hotel with Despegar

Despegar is a powerful online travel agent that offers a strongly targeted channel to the valuable South American market. There are plenty of benefits of using Despegar that were described earlier – greater visibility, simplified management, secure transactions – but there are even more to be uncovered by integrating your hotel with Despegar through your channel manager.

SiteMinder’s channel manager integrates seamlessly with Despegar (along with hundreds of other OTAs), allowing you to make listing updates quickly and painlessly once your listings have been mapped. Rate parity guaranteed, risk of double bookings eliminated.

It doesn’t stop at simple admin, however. SiteMinder also provides in-depth insights into customers and competitor pricing, analysis of guest preferences and staff scheduling, not to mention an integrated online booking portal and website builder that helps you generate more direct bookings and avoid OTA fees and commission.

Integrating your hotel with Despegar is a smart choice to access the South American market. Doing so through SiteMinder is even smarter – easier and more effective too.

HotelsCombined is a hotel metasearch engine that aggregates hotel prices and availability from numerous online travel agencies (OTAs), hotel chains, and independent hotels, presenting users with a comprehensive overview of their options. It allows users to compare prices for the same hotel room across different platforms to ensure they are getting the best deal. 

This tool is particularly useful for hoteliers to understand their competitive landscape and ensure they are listed across as broad an audience as possible.

Why should your hotel be on HotelsCombined?

By listing your hotel on HotelsCombined, you’re placing your hotel in front of a global audience. This platform aggregates data from various booking sites, ensuring your hotel is seen by a wide range of potential guests, forming a core component of your audience visibility strategy when combined with being listed on other metasearch engines. But it’s not just about being seen. HotelsCombined offers deep insights into how your hotel’s pricing and availability stack up against competitors, providing you with the information needed to make strategic adjustments and stay ahead in the market.

Moreover, HotelsCombined caters to a diverse demographic of travellers, from leisure seekers to business professionals. This broadens your potential customer base, opening up more opportunities for bookings. What makes this platform even more appealing is its cost-effectiveness. With a pay-per-click or commission model, your investment is tied directly to tangible results, be it through increased traffic to your website or through confirmed bookings.

Being featured on a reputable and trusted platform like HotelsCombined also lends an added layer of credibility to your hotel. Travellers often rely on metasearch engines to find reliable and well-reviewed accommodations, so a presence on such platforms can significantly influence their booking decisions. Furthermore, the analytics and insights provided by HotelsCombined empower you to make data-driven decisions, allowing you to tailor your offerings to meet market demands effectively and improve your hotel’s overall performance.

In essence, incorporating your hotel into the HotelsCombined network not only broadens your exposure but also equips you with the tools and insights necessary to navigate the competitive landscape of the hospitality industry efficiently.

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HotelsCombined reviews: Is it legit?

HotelsCombined is widely recognised as a legitimate and reliable hotel metasearch engine. It aggregates data from multiple booking sites, allowing users to compare prices and availability for hotels worldwide. 

Here are several reasons why HotelsCombined is considered trustworthy:

• Reputable partnerships: HotelsCombined collaborates with a broad range of well-established online travel agencies (OTAs), hotel chains, and independent hotels. This wide network of partners ensures that users have access to a comprehensive selection of accommodation options.
• User-friendly experience: With a focus on providing a seamless user experience, HotelsCombined offers an intuitive interface that simplifies the comparison process. This user-centric approach contributes to its legitimacy, as it prioritises helping travellers make informed decisions.
• Transparent pricing: One of the key features of HotelsCombined is its commitment to transparency in pricing. Users can see a breakdown of costs, including any additional fees, ensuring there are no surprises when it comes to booking.
• Customer support: Despite primarily being a comparison site, HotelsCombined offers support for users who have queries or need assistance with booking, enhancing its credibility and reliability.
• Awards and recognition: HotelsCombined has received several awards and recognitions in the travel industry, further solidifying its status as a legitimate platform. These accolades are based on its effectiveness, user satisfaction, and innovation in the travel technology sector.
• User reviews and ratings: The platform often includes user reviews and ratings, providing prospective guests with insights from previous travellers. This feature aids in building trust and legitimacy among its user base.

How to use the HotelsCombined extranet and login

Using the HotelsCombined extranet is a straightforward process designed to give hoteliers control over their listings, rates, and availability on the platform. Once logged in, you can easily manage your hotel’s presence, ensuring that potential guests see the most accurate and enticing information about your property. 

This extranet is a powerful tool in your hotel management arsenal, allowing for real-time updates and insights into how your property is performing in terms of visibility and bookings.

4-step guide to using the HotelsCombined extranet

1. Access the login page

Begin by navigating to the HotelsCombined extranet login page. This can typically be found on the HotelsCombined website, often in the footer under a section for partners or suppliers.

2. Enter your credentials

On the login page, enter your username and password. These credentials are usually provided when you initially register your property with HotelsCombined or after you’ve completed the onboarding process with their team.

3. Navigate the dashboard

Once logged in, you’ll be directed to your hotel’s dashboard. Here, you can view a summary of your property’s performance, access booking data, and see any notifications or updates from HotelsCombined.

4. Manage your listings

Use the navigation menu to access different sections of the extranet, where you can update your hotel’s information, adjust room rates, manage availability, and respond to guest reviews. Make sure to regularly check and update these sections to keep your listing competitive and appealing to potential guests.

“Our previous direct booking option was very confusing and not very user-friendly. SiteMinder’s booking engine is a lot better integrated on the website and makes it easy for guests to book. So far, we have increased our direct bookings by 15%”

Mirja Wolf,

Manager

Hotel Kragemann

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Benefits of integrating your hotel with HotelsCombined

Integrating your hotel with HotelsCombined offers a multitude of benefits that can enhance your property’s visibility, streamline operations, and ultimately drive more bookings:

Wider audience reach

HotelsCombined, being a leading hotel metasearch engine, aggregates hotel data from various sources, presenting it to a vast audience. Integration means your hotel appears in searches by a diverse global audience, significantly expanding your reach beyond traditional channels.

Competitive advantage

Your presence on HotelsCombined allows potential guests to compare your offerings directly with competitors. With strategic pricing and quality service, your hotel can stand out, attracting more bookings by offering the best value.

Real-time availability and rates

The integration ensures that your hotel’s availability and rates are updated in real-time, providing potential guests with accurate information. This reduces the chance of overbookings and ensures guests can book your rooms at the best available rates.

Insightful analytics

HotelsCombined provides valuable analytics and market insights, allowing you to understand your hotel’s performance on the platform. These insights can guide your pricing strategy, promotional efforts, and overall online presence.

Enhanced guest trust and confidence

Being listed on a reputable platform like HotelsCombined enhances guests’ confidence in booking your hotel. The transparency in pricing and availability, along with reviews from past guests, builds trust even before they step through your door.

Efficiency in management

The integration streamlines the management of your online presence. With automatic updates and centralised control, you can efficiently manage your listings, freeing up time to focus on delivering exceptional guest experiences.

Cost-effective marketing

Leveraging HotelsCombined’s platform as a marketing channel can be more cost-effective compared to traditional advertising. You gain access to a large audience without the hefty upfront costs, paying only for actual clicks or bookings.

Increased direct bookings

While HotelsCombined is a comparison platform, a well-managed presence can lead to an increase in direct bookings. By offering the best deals or exclusive perks on your website, you can encourage guests to book directly.

A hotel booking plugin is an online system that allows the capture and processing of direct reservations. It will further reduce your reliance on OTAs (online travel agencies like Booking.com) by bringing more features and greater functionality to your existing booking engine.

These apps, similar to those offered on SiteMinder’s Hotel App Store, are designed to complement and enhance the way you attract, serve, and gain value from your guests.

There are hotel booking plugins to suit whatever goals you have, including to:

• Aid in the way you meet guest expectations (who are now losing trust in OTAs)
• Increase conversion rates and tracking
• Enable greater efficiency
• Allow additional tech integration easily
• Improve insights with price comparison
• Streamline communications with chatbots
• Create strong loyalty programs

Hotel booking plug-in apps can be visible apps or non-visible apps. Visible apps are those the guest will directly interact with, such as a chatbot or price comparison tool.

On the other hand, non-visible apps won’t be seen by guests and will focus more on your own performance, such as conversion tracking and marketing programs.

Why are hotel booking plugins so powerful?

Hotel booking plugins, or online booking engines, are one of the best tools owners can adopt at their hotels, alongside channel managers.

A hotel booking plugin will allow you to take commission-free bookings from guests via your website and social media accounts such as Facebook. You’ll also be able to increase bookings by connecting your booking engine to Google Hotel Ads and other metasearch channels if you choose to.

Booking plugins serve to increase the effectiveness and power of your booking engine.

Most importantly, you’ll be able to offer travellers exclusive incentives, extras, upsells, and packages to win them over and take charge of their experience. Being able to control how the relationship with your guests progresses is crucial for delivering quality experiences, enjoying long term revenue and achieving business success.

With an online booking plugin, you can stay in touch with your guests from start to finish, using personalised communications enabled via pre-stay emails, as well as post-stay emails and TripAdvisor review auto-triggers for completed stays.

Plugin to success with SiteMinder

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Features of hotel booking plugins

There are dozens (if not hundreds) of hotel booking plugins available on the market today.

This means they can serve many different purposes. Here are a few of the ways they can help your hotel.

Streamlined user experience

There’s nothing that can outperform an excellent guest experience during booking. Many hotel booking plugins help with:

• Easy mobile bookings. The travel world is mobile – literally. More people than ever are booking their next stay through their mobile phones or tablets. Some booking plugins can help smooth out the guest experience on mobile.
• Advanced booking calendars. Flexible booking calendars that enable guests to book as many rooms as they need in a single reservation can make all the difference in whether a guest finishes their booking – or drops off in frustration.
• Automated guest notifications and communications. The best booking experiences are those where the guests know what they need to know when they need to know it, and feel catered to at all touch points – whether that’s before, during, or after their stay.

Maximised revenue opportunities

Opportunities for upsells and cross-sells don’t stop at the “book” button – or at least, they shouldn’t. Booking plugins can help ensure that you’re not leaving money on the table:

• Social media integration. Social media is a powerful tool in driving revenue from hotel room bookings. Whether it’s helping with communication or make the booking process simpler, direct bookings can be gained from social media via your booking engine and plugins.

• Optional extras and special offers. Choosing where to stay is a big decision for guests, and entering the booking process doesn’t mean they’re fully sold. The best booking engine plugins enable hotels to sweeten the deal with customised special offers and optional extras, generating more revenue as well as helping to secure that final booking.

• Simple payment processing. Too often, a booking falls at the final hurdle: payment. Without safe, simple and secure payment processing at the end of booking, a guest may change their mind and stay elsewhere.

Actionable market intelligence

Data is gold in the modern digital age, and the best booking plugins ensure that you get it in spades. It’s not just about having a tool that lets guests reserve a room, it’s about knowing how they came to reserve that room and the steps they went through during the booking process.

One of the best insights that a booking plugin can provide is simply where people drop off in the process. If your booking engine doesn’t tell you how long someone takes to book a room, what pages make them click away (or close the process altogether), and split this information per device, then you may be missing out on valuable, actionable insights.

Top hotel booking plugin apps and providers

Not sure where to start your search for the plugin that’s right for you? Here are the 10 best hotel booking plugins available right now.

1. SiteMinder’s hotel booking engine

That’s us. SiteMinder’s booking engine maximises direct bookings with its seamless interface and comprehensive analytics, helping hotel owners enhance operational efficiency and guest satisfaction.

It includes features like multi-currency and multi-language support, alongside extensive customisation options, making it a versatile choice for global hospitality businesses seeking to maintain brand consistency and maximise revenue through direct channels.

On top of that, it can integrate with countless direct booking plugin apps that ensure you are making the most of your features.

2. Little Hotelier booking engine

Specially designed for small accommodation providers, Little Hotelier offers an intuitive and straightforward booking engine that simplifies the reservation process, aiming to boost direct bookings while minimising administrative burdens.

The platform also includes mobile optimisation, ensuring a smooth booking experience across all devices, and integrates with property management systems to streamline operations, although it may lack some of the advanced features found in more comprehensive systems.

3. Triptease booking plugin

Triptease offers a direct booking plugin that integrates with hotels’ websites to enhance direct bookings through transparent price comparisons with OTAs, targeted messaging, and actionable data insights. A significant advantage of Triptease is its ability to improve direct booking rates by offering guests clear price comparisons, thereby instilling confidence in the value they’re receiving.

However, the complexity of setting up and integrating Triptease with a hotel’s existing systems can be a drawback, as it requires significant technical effort and customisation.

4. HiJiffy booking plugin

HiJiffy streamlines the hotel booking process with a focus on speed and simplicity, aiming to minimise the steps and time required for guests to make a reservation. This streamlined process can significantly reduce booking abandonment rates, making it a strong choice for hotels looking to capture more direct bookings efficiently.

On the downside, Jiffy’s simplified approach may lack the depth of features or customisation options that larger hotels or those seeking more sophisticated functionality might require.

5. The Hotels Network booking plugin

The Hotels Network Booking Plugin stands out for its ability to provide personalised experiences and predictive analytics, tailoring offers and content to individual users. This personalisation can lead to higher conversion rates by making potential guests feel understood and valued.

However, the emphasis on personal data analysis and customisation could raise privacy concerns among users wary of how their information is being used.

6. Laasie booking plugin

Laasie focuses on fostering guest loyalty by offering rewards and incentives for direct bookings, thereby encouraging repeat business and building a loyal customer base. This approach is particularly beneficial for hotels looking to increase customer lifetime value.

The main challenge with Laasie is ensuring that the rewards system is managed effectively to maintain profitability while still providing meaningful value to guests.

7. Sojern booking plugin

Sojern specialises in data-driven digital marketing and real-time bidding, helping hotels target potential guests more accurately and increase their online visibility. The advantage of using Sojern is its ability to reach potential guests at the right time with the right message, thereby increasing the chances of conversion.

However, the dependency on digital advertising means that hotels will incur ongoing costs, which can accumulate and impact the overall budget.

8. Flip.to booking plugin

Flip.to is an advocacy platform that converts guests into brand ambassadors, encouraging them to share their positive experiences on social media and with their networks. This organic marketing approach leverages word-of-mouth and social proof, potentially attracting a broader audience.

The effectiveness of Flip.to, however, hinges on guests’ engagement and willingness to share their experiences, which can vary widely.

9. Ada Tray booking plugin

Ada Tray enhances the guest experience by incorporating AI-powered chatbots into hotel websites, providing instant assistance with bookings, customer service, and enquiries. This 24/7 automated support can significantly improve customer satisfaction and engagement.

The limitation of Ada Tray lies in its ability to handle complex customer service queries, which may still require human intervention for resolution.

10. 123Compare.me booking plugin

123Compare.me offers a price comparison and analytics tool that allows hotels to display live price comparisons directly on their websites, fostering transparency and trust. This approach can reassure potential guests that they are getting the best deal, potentially increasing direct bookings.

However, a focus on price comparisons can inadvertently lead hotels into a competitive pricing war, which could erode profit margins over time.

“We’re getting more bookings since using SiteMinder. As an added bonus, more than half of those are coming in via our own website. The setup was super easy. Our team quickly learned to navigate the new system and today, we’re operating seamlessly.”

Jan Wichmann,

Owner and Property Manager

Hotel Graf Bentinck

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Alternative hotel booking plugins

There are also other popular hotel plugins available on the market, which may be of interest to your hotel.

They include:

WooCommerce hotel booking plugin

WooCommerce is a WordPress booking plugin for small to large operators.

It allows customers to make reservations, book appointments, or hire equipment easily. You can also use it to enable price customisation.

Amelia booking plugin

Amelia is another booking plugin for WordPress that serves more than 60,000 sites.

It’s a versatile service that can be used by many different businesses, including private accommodations.

Gravity Forms booking plugin

While it isn’t noted for serving accommodations, Gravity Forms is another popular WordPress plugin that has the versatility to manage many different bookings and appointments.

MotoPress hotel booking

MotoPress is a hospitality-specific plugin suitable for rental property websites.

It makes it easy to accept direct reservations and also sync reservations to OTAs.

Divi booking plugin

Divi is more of a theme, than an actual plugin. It works on WordPress as a design theme and website builder.

However it integrates seamlessly with many booking plugins to create a full booking experience for website visitors.

HotelTonight is an online travel agency (OTA) and metasearch engine that specialises in helping travellers find last minute accommodation at a great price. Established in 2010, and acquired by Airbnb in 2019, it has become a popular channel for hotels looking to top up their occupancy with same day or same week reservations.

As a mobile only app, HotelTonight isn’t bound by rate parity agreements, which means a hotel can offer cheaper rates through this channel than it can through more established OTAs.

The HotelTonight Extranet is the platform through which a hotel controls their HotelTonight listing. It works much the same as the Booking.com Extranet and Expedia Partner Central, allowing you to adjust price, availability and the info on your listing.

To gain access to HotelTonight Partner Central/Extranet you first need to be approved as a HotelTonight Partner. You can sign up here, though be aware that HotelTonight is not yet a truly global platform – once you give them your address you’ll be advised whether HotelTonight currently has a presence in your area or are looking to expand into it.

If the answer is yes, you can sign up, log in and get started.

Why is the HotelTonight hotel login important?

Your HotelTonight login grants you access to the HotelTonight Extranet – a tool that allows you to control every aspect of your listing: pricing, availability, promotions, info and pictures.

It should be said that while you’ll need to log into the HotelTonight Extranet in order to control your listing, once you log in you don’t necessarily have to use that tool. You can instead connect to HotelTonight, and a wealth of other OTAs, through SiteMinder’s channel manager, which lets you update pricing, availability and info across your different OTA listings all at once.

Features of HotelTonight Partner Central

When logging into the HotelTonight Extranet you’ll be met by a number of tabs that allow you to control your presence on the platform. These include:

• Inventory: This is where you list the rooms you would like to offer, and the prices you would like to offer them at.
• Bookings: This tab allows you to track all your HotelTonight bookings easily.
• Reviews: You can check and respond to HotelTonight reviews and customer ratings through the Extranet.
• Rank Boost: This paid feature helps you to get to the top of the HotelTonight rankings for relevant searches.

Trade endless OTA dashboards for a single login

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How to log in to the HotelTonight Extranet

The HotelTonight login process is quite simple, and can be summarised in the following five steps

Step 1: Sign up

Head to the Sign Up page and check whether your hotel is eligible to become a HotelTonight partner.

Step 2: Sign in

Once you’ve been approved as a HotelTonight partner, navigate to the Sign In page and key in your HotelTonight Extranet login details.

Step 3: Update your profile

Once you’ve logged into the HotelTonight Extranet you can add details, fill out your inventory, and set your pricing.

Step 4: Connect to SiteMinder

As a SiteMinder user you can connect to the Extranet via our channel manager, and control every aspect of HotelTonight – and all your other booking channels – through a single screen!

“Since implementing SiteMinder, our operations have undergone a remarkable transformation. SiteMinder has revolutionised our approach to channel management and proven to be the ultimate solution for our challenges with availability, inventory, and OTA management.”

Pawarisa Hirantanes,

Corporate Director

Chatrium Hotels & Residences

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HotelTonight reviews: Is HotelTonight legit?

Is HotelTonight reliable and trustworthy? As a platform that has been in business since 2010, and that was acquired by Airbnb in 2019, HotelTonight is most certainly legitimate.

That said, there are some areas in which HotelTonight can prove a struggle for accommodation providers. The search algorithm is a closely guarded secret, and as a hotel you have little control over whether you are served up as a high-ranking option for relevant guests, unless you’re willing to pay for a Rank Boost. You also receive minimal guest information when a booking is made.

In relation to the Extranet, functionality is somewhat limited and is mostly focused on deals and promotions.

But perhaps most importantly, the HotelTonight Extranet is simply another dashboard that you have to navigate to and use. And because HotelTonight is a smaller player, and will never deliver the quantity of reservations that Booking.com or Expedia will, as a hotel it can be hard to justify spending your valuable time on the platform.

But there is a solution to this issue. HotelTonight is a SiteMinder partner integration, which means a SiteMinder user can directly connect to HotelTonight and enjoy complete control and functionality over this booking channel.

This system places HotelTonight alongside all your other booking channels, from other OTAs like Booking.com and Expedia, to GDSs, to direct website bookings, and allows you to adjust pricing, availability and listing information in a matter of clicks.

Hotel rate management is the process of strategically pricing rooms to attract guests while also maximising revenue. This process requires continuous analysis of market trends, booking patterns, and competitor strategies. It’s not just about setting the right price, but also about adjusting it in response to market changes.

This strategy is crucial for enhancing both occupancy rates and the average daily rate (ADR), directly influencing the hotel’s financial performance. 

Why does hotel rate management matter?

Mastering the art of rate management is crucial for thriving (not just surviving) in an ever-competitive hotel landscape. But why does it matter so much? Here’s what hotels who keep a tight rein on their rate management can expect:

• Maximised revenue: The most direct impact of effective rate management is on your bottom line. By dynamically adjusting room prices based on demand, seasonality, and market trends, you ensure you’re not leaving money on the table during peak times, and equally, not pricing yourself out of the market when demand wanes.
• Higher occupancy rates: Pricing rooms correctly plays a pivotal role in driving occupancy. Overpriced rooms deter potential guests, while underpricing leads to revenue loss. Finding that pricing sweet spot is key to keeping rooms filled throughout the year.
• Adaptability to market conditions: The hospitality market is fluid, influenced by various external factors like local events, economic shifts, and even weather patterns. Effective rate management means being agile – quickly adjusting prices in response to these changing conditions.
• Guest perception and value: The price of a hotel room isn’t just dollar signs. It’s a signal of value to guests. Smart rate management helps in positioning your hotel appropriately in the market, ensuring guests feel they’re getting the right value for their money.
• Better data for strategic decisions: With advancements in hotel management software, rate management is no longer a guessing game. Utilising data analytics, you can make informed decisions that align with your hotel’s strategic goals.
• Staying ahead of the competition: In a market where guests have countless options at their fingertips, staying competitive is key. Effective rate management ensures your pricing is always aligned with or ahead of your competitors, helping you stand out in a crowded market.

Basically, hotel rate management is about understanding the market, knowing your guests, and using this knowledge to drive profitability while maintaining guest satisfaction.

Hotel rate management strategy

As we’ve seen so far, there are countless factors that will influence and help you determine your rates.

• Internal factors such as expenses like taxes, wages, supplies, cleaning, and refurbishment mean there’ll be a minimum rate you have to set to break even on your business each month, quarter, or year.
• External factors such as the season, competitors, and events mean you’ll have constant work to do adjusting your rates.

However, even larger industry trends may supersede any of these factors. Google produces 500 million results when asked ‘Is travel getting more expensive?’

Unsurprisingly, the first 10 results are solely dedicated to the price of flights. Panicked headlines from global news organisations warn travellers about the rising costs associated with travelling by plane, thanks to increased fuel costs and the subsequent pressure on airline profits.

One of the difficulties for airlines is knowing how to factor in the increasing fuel costs. Passing the increases onto travellers by raising ticket prices is one of the few options available to them.

What causes hotel rates to fluctuate?

Although hotel rate management has less to do with barrels of crude oil, airline prices could still impact supply and demand for hotels, the most common reasons for the fluctuation of hotel rates. 

As we all know, supply is how much of a service the market provides and demand is how much of the market wants to pay for it.

While it would be too simplistic to say fluctuations in hotel room rates can be solely down to this theory, it’s a great place for hoteliers to start because economists have long believed the best way to allocate resources – in this case hotel room rates – is to let supply and demand decide.

Beyond your location and online reputation, your hotel rates will mostly be affected by these 3 factors:

1. The time of year

Is it peak or off-peak season? If it’s a quiet time you can lower your rates to coax more guests in. If it’s the height of your busy season and hotels locally are becoming booked up, you can afford to charge your guests more. It pays to obsess over long-range weather forecasts too.

2. Your types of available rooms

Different rooms will require different rates and this is where you can get creative with your packages and offers.

A good channel manager will allow you to sell the same room in different ways across all your connected online channels – for example, a ‘deluxe suite including breakfast & local walking tour’ vs. ‘deluxe suite room only’. The possibilities are endless – almost.

3. Any major events in the local vicinity

Knowing what’s happening in and around your hotel is crucial to setting room rates accurately. If you’re a hotel in Melbourne and you know the Australian Open tennis tournament comes to town every January, start looking at your competitors’ rates early.

Track the hotel rate management trends and be strategic – you could be winning the business of the world’s biggest sports fans or leaving valuable revenue on the table.

Master rate management with SiteMinder

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Hotel rate management best practices

Every hotel is unique, with unique selling points and a unique audience. The perfect rate management strategy for one hotel won’t necessarily be the right fit for yours. However, there are some best practices that can help you along your own unique rate management journey.

What is the hotel industry standard for measuring the effective management of room rates?

There’s no single KPI that perfectly describes how effective your rate management is. Rather, there are a handful of metrics that describe different facets of the success of your strategy:

• Average daily rate (ADR): This metric measures the average rental income per occupied room in a given period. It’s calculated by dividing the total room revenue by the number of rooms sold. ADR is a crucial indicator of how effectively a hotel is pricing its rooms.
• Occupancy rate: This is the percentage of available rooms that are occupied over a specific period. It’s calculated by dividing the number of occupied rooms by the total number of available rooms. While not a direct measure of rate management, occupancy rates can indicate the effectiveness of pricing strategies in attracting guests.
• Revenue per available room (RevPAR): RevPAR combines elements of both occupancy and ADR to provide a comprehensive picture of a hotel’s performance. It’s calculated by multiplying the ADR by the occupancy rate, or dividing total room revenue by the total number of available rooms. RevPAR helps hoteliers understand how well they are filling their rooms and how much they are earning from each room.
• Length of stay (LOS): This metric measures the average number of nights that guests stay at the hotel. A longer LOS can be an indicator of effective rate management strategies, such as offering discounts for extended stays.
• Market penetration index (MPI), average rate index (ARI), and revenue generation index (RGI): These are comparative metrics used to assess a hotel’s performance against its competitive set or the broader market. MPI compares a hotel’s occupancy rate to the market average, ARI compares the ADR, and RGI compares the RevPAR.
• Distribution channel analysis: Understanding which distribution channels (like OTAs, direct bookings, travel agents) are bringing in the most revenue and at what cost is essential for rate management. This analysis helps in optimising channel mix for better profitability.

What are rate fences in the hotel industry?

Fences are rules that apply to room rates. It means that to secure a certain rate the guest will have specific conditions applied to them.

One such example might be a minimum stay length. If the guest wants a discounted rate they might be required to stay at least two nights. By that example, the cheaper rate is ‘fenced’ off from those guests who only want to stay one night.

Potential guests need to feel that they are buying different products when they pay different rates. Rate fences are the elements that can help create this differentiation. Rate fences are commonly used to prevent customers who are willing to pay a higher amount, to have access to a discount.

The most common types of fences include:

• Physical fences – These include features such as the location of the room, the view, furniture, amenities, size, etc. Some segments will be willing and able to pay more for rooms with a great view, while other segments will prefer to forgo that view in return for a lower rate
• Transactional fences – These involve time, place, quantity of purchase and flexibility of use. An example can be non-refundable rates. It’s likely that non-refundable rates will not be attractive to a corporate guest but a more rate-sensitive leisure guest might prefer a non-refundable product if the rate is lower.
• Buyer characteristics – These regard attributes such as age, affiliation to an institution or group and frequency or volume of consumption. 
• Controlled availability fences – In this case, availability and rates are assigned based on geographical criteria or distribution channels. For example, charging different rates according to the customer’s place of residence. 

Applying fences the right way can make your business more successful and give you a competitive edge.

Why use refundable rates?

A refundable rate gives travellers who are interested in your hotel more confidence to make a booking. Given that over a half of travellers who responded to a recent Expedia Group survey said they would not book non-refundable accommodation, even if it was discounted, a refundable rate can go a long way to boosting your occupancy. It will also help you stand out on sites like Expedia where a large volume of travellers are researching accommodation. It’s easy to set up a refundable rate on a channel like Expedia with SiteMinder’s channel manager and once you do so, your property will show ‘Fully refundable’ or ‘Free cancellation’ in traveller search results.

How software helps improve hotel rate management

Set up base rates

Software assists in setting initial rates based on a comprehensive analysis of factors like historical data, room types, and standard market rates. This foundational pricing provides a consistent benchmark, ensuring that all subsequent dynamic pricing adjustments are rooted in a sound, data-driven starting point. It lays the groundwork for effective rate management, allowing for strategic adjustments while maintaining a level of predictability and stability in pricing.

Create flexible restrictions

Implementing flexible restrictions on bookings, such as minimum stay requirements, advance booking limitations, or closed-to-arrival (CTA) days, is simplified through software. These restrictions help in managing room availability more effectively, especially during peak periods or special events. 

For instance, requiring longer stays during high-demand periods ensures maximum revenue generation from each booking, while advance booking limitations can be used to encourage early reservations, aiding in better inventory management.

Use dynamic pricing algorithms

Dynamic pricing algorithms in software automatically adjust room rates in real-time based on market demand, competition, and other external factors. This responsive approach ensures that rates are always optimised for current market conditions, enhancing revenue opportunities during peak demand and maintaining occupancy during slower periods.

Analyse market trends and data

Software tools offer in-depth analysis of market trends, booking patterns, and guest behaviour. This analysis helps in understanding the best times to adjust rates, either upwards or downwards. Using this data-driven insight aids in making informed pricing decisions, aligning rates with market expectations and maximising revenue potential.

Unify distribution channels

Integration with various distribution channels ensures consistent and updated room rates across all platforms. Software automates the distribution of rate changes to OTAs, GDS, and direct booking channels. This consistent rate presence helps in avoiding disparities, ensuring a unified booking experience for guests and reducing the risk of overbookings or rate conflicts.

Airbnb occupancy rate is defined by the platform as “the number of nights booked divided by total nights available to be booked across all relevant listings.” 

Occupancy rate is a metric that is used to describe the percentage of hotel rooms that are occupied. This can be measured on an individual room basis or by total rooms, over a single night or an extended period. Calculate your occupancy rate with this simple hotel occupancy calculator.

Why Airbnb occupancy rate data is important for hotels

Occupancy rate is one of the most important metrics available to any hotel business, as it is one of the simplest and most tangible measures of success, and offers almost unmatched  power to improve hotel revenue management.

The simple fact is that every empty hotel room will make a loss. By closely tracking and analysing your Airbnb occupancy rate data, you can see how effectively you are filling your hotel, you can identify occupancy issues and opportunities, and you can measure the impact of strategies designed to increase occupancy.

One dashboard to rule them all

Streamline and enhance your operations with Siteminder which brings all your booking channels together in one place. Seamlessly connect with 450+ channels, including Airbnb, to control pricing, availability and listing info from the one portal.

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How to check Airbnb occupancy rate

You won’t find ‘occupancy rate’ on the standard Airbnb host dashboard. Here’s how to access and analyse this important data.

Step 1

To gain access to occupancy rate data you need to activate the ‘Professional hosting tools’ feature (if you aren’t using it already). On your hosting dashboard, click your profile picture in the top right corner, then click ‘Account’.

On the account page there will be a grid of setting options. Click ‘Professional hosting tools’ > ‘Manage’ > ‘Use professional tools’ to turn this feature on.

Step 2

Once you’ve turned the feature on, go to the top menu and click ‘Host’ > ‘Performance’. This will send you to a dashboard full of insights. On the side menu of this dashboard click on ‘Opportunities’ > ‘Occupancy & rates’ > ‘Occupancy rate’ to bring up occupancy data.

Step 3

In this screen you can play with occupancy rate data by changing room and date variables, and by filtering the results by region, room type and amenities. This screen doesn’t just serve up occupancy rate data, but shows you booked nights, unbooked nights, blocked nights and check-in numbers too.

What is a good Airbnb occupancy rate?

Now that we know how to check your occupancy rate on Airbnb, what is a good Airbnb occupancy rate?

This question can be quite a tricky one to answer for hotel businesses, as private Airbnb hosts (of which there are many) use the platform very differently to professional Airbnb hosts. 

Airbnb will also usually form one of many booking channels used by a hotel. If you block a night on Airbnb because it has been reserved through another booking channel, Airbnb will treat it as unbooked, which will artificially lower your occupancy rate.

This means that Airbnb occupancy rate data may be of limited use. A booking channel management tool like SiteMinder gives you a more complete and accurate view of occupancy rates than Airbnb will.

All that aside, the following numbers offer a basic guide to typical Airbnb occupancy rates.

Typical Airbnb occupancy rate

As noted above, average Airbnb occupancy rate data will be of limited value to a professional hotelier, but the typical Airbnb occupancy rate is generally around 55%-60%.

Highest Airbnb occupancy rate

In terms of the highest occupancy rate on Airbnb, no host is ever likely to achieve 100% over a year. The very top performers generally sit around 80% occupancy, though some go as high as 90%.

Airbnb occupancy rate by city

Cities with high demand and low supply will naturally have a higher occupancy rate. The high performers might surprise you – in the US cities like Joshua Tree, California and Chattanooga, Tennessee have far higher occupancy rates than sprawling, saturated Airbnb markets like Los Angeles and Miami.

Airbnb occupancy rate by zip code

By zooming in on specific zip codes, we can see that certain suburbs can do far better than their neighbours. Airbtics offers a fascinating rundown, showing a place like Kissimmee, Florida, whose only claim to fame is that it’s near Disney World, has a far higher occupancy rate than nearby Orlando, and one of the highest in the US.

Top strategies to increase Airbnb occupancy rate data

Strategies to increase your occupancy rate are applicable across all booking channels, not just Airbnb. Here are a few of the most effective:

• Competitive pricing: Constantly compare your room rates with direct competitors to ensure you can win the business of price-focused guests.

• Promotions and discounts: Everyone loves feeling like they’re getting a deal. Craft enticing promotions and discounts, such as mobile-only rates, for rooms and dates that prove hard to move.

• Flexible booking options: By giving guests more freedom to change or amend their booking, they’ll be less hesitant to book in the first place, which will help you win business.

• Responsive communication: A guest will often ask a question when they’re deciding between you or another property. Airbnb offers response rate data, and the best hosts keep their average to less than an hour.

• Loyalty programs: Customer retention is far easier and cheaper than customer acquisition, and a tempting loyalty program can prove incredibly effective at encouraging return visits.

• Utilise Airbnb tools and features: Amongst Airbnb’s professional tools you’ll find a wealth of insights and opportunities that can greatly enhance your use of the platform.
• Monitoring and analysis: Why limit yourself to Airbnb data? With the help of a tool like SiteMinder Insights you can enjoy a comprehensive view of your performance against your major competitors and across all booking channels.

Airbnb fees are the charges that Airbnb imposes on guests and hosts when a booking is made. The platform works in a similar way to OTAs like Booking.com and Expedia, making money by charging an Airbnb commission on the reservations it facilitates.

Airbnb fees are becoming increasingly complicated. The platform is becoming more regulated across the globe, so fee types and rates can change drastically from country to country, state to state, even suburb to suburb.

How much are Airbnb fees? In this guide we’ll attempt to bring a bit of clarity to what a hotel might face in terms of Airbnb taxes and fees.

How much does Airbnb charge hosts?

Airbnb host fees come in two forms:

• Host-only fee: This fee structure is mandatory for what Airbnb calls ‘traditional hospitality listings’, such as hotels, hostels, serviced apartments, etc, and for any other owners that publish and manage listings through a PMS like SiteMinder.
• Split fee: This Airbnb host fee is usually applied to private Airbnb listings. It sees the Airbnb service fee split between the host and the guest.

What percentage does Airbnb take?

Airbnb hosting fees are always represented as a percentage of the booking price:

• Host-only fee: Usually 14%-16% (excluding Airbnb fees and taxes), automatically deducted from the host payout, though the specific rate will depend on a variety of factors, such as location and accommodation type.
• Split fee: Usually 3% of every booking, though the fee may be slightly higher for hosts with listings in certain areas of Italy, for Airbnb Plus hosts, or for those who opt for a ‘super strict’ cancellation policy. The guest then pays a fee of approximately 14%.

Stop paying OTA fees, start earning more

Airbnb and other booking channels charge commission fees of 15%-25% which seriously eat into your bottom line. But with SiteMinder’s direct booking capabilities, your hotel gains greater control over bookings and keeps more money.

Learn more

Airbnb hosting fees for hotels

As stated above, Airbnb will usually charge professional accommodation providers like hotels a hosting fee of 14%-16% of the booking total – but that’s not the whole story. Airbnb has a number of other fees that can increase the divide between what the guest pays and what you earn, eating into your bookings and revenue.

Airbnb service fee

‘Airbnb service fee’ is a catch-all term for the Airbnb owner fees (split or host-only) mentioned above. On the guest side it is known as the Airbnb booking fee.

Airbnb cleaning fee

Airbnb cleaning fees are flat fees that are set by the host and paid by the guest. Airbnb will take a cut of the cleaning fee based on the Airbnb service fee. 

Currency conversion fee

If a guest chooses to pay for an international stay in their local currency they may be charged a conversion fee by Airbnb. This used to be a flat 3% of the total, but in recent years Airbnb has become more opaque on the exact rate. Hosts are unaffected by currency conversion fees.

Airbnb listing fee

Airbnb does not charge a fee to list on the platform, though a hotel may choose to invest in software like SiteMinder to simplify the task of managing listings on Airbnb and beyond.

Airbnb property management fees

If your hotel has six or more room listings on Airbnb you are eligible to charge extra fees, including a ‘management fee’ designed to cover general admin and business expenses. These fees are set by hosts and can be charged as either a percentage of the nightly rate or as a flat fee applied to every booking. Airbnb takes a cut according to the service fee.

Resort fee

Similar to the management fee mentioned above, the resort fee can be charged by an accommodation provider with six or more listings and can be a fixed fee or a percentage of the booking total.

Experiences host fee

Airbnb Experiences charges a service fee of 20% to hosts who offer experiences through the platform.

Cancellation fee

Depending on the cancellation policy you choose as a host, a guest may be charged a fee, usually 25% or 50% of the total depending on when the cancellation occurs, that you keep (minus Airbnb’s service fee).

Are Airbnb fees refundable? Cleaning fees are always refunded for cancelled stays, while service fees are only refunded during the free cancellation period.

Airbnb guest fees

Airbnb booking fee

In a split fee situation, the guest will pay a service fee of up to 14.2%, called the booking fee. In a host-only fee situation, no booking fee will apply.

Airbnb cleaning fee

Cleaning fees are set by the host and paid by the guest. Airbnb takes a cut through the service fee. These are flat fees and are not compulsory.

Airbnb hidden fees

Airbnb has long been accused by guests of hiding fees until late in the booking process, such as currency conversion fees and local taxes. In 2023 they worked to address this with the release of a ‘display total price’ button that offers greater price transparency.

The impact of Airbnb fees to profitability

Discounts, deals and targeted rate strategies are key to attracting guests, managing yield and increasing hotel revenue. But Airbnb fees, like all booking channel commissions, eat into the already low levels of profit in these situations.

One of the most effective revenue management strategies available to a hotel is to limit booking channel fees. In fact, with the help of the right tool, you can do away with commissions altogether.

What is the Airbnb host login?

An Airbnb host login describes the process of logging into Airbnb to be taken to the Airbnb dashboard. In order to log into Airbnb you need to create an account. If you have previously created a traveller account, you can use the same details for your host account.

It should be noted that Airbnb sells itself as a more social, personal booking platform – it doesn’t allow large hotel chains to create listings. All properties are represented by an individual’s profile, complete with a photo and name, and you are unable to create a listing under a business or brand.

Where can you access the Airbnb host login page?

The Airbnb host login page can be found by navigating to the Airbnb homepage (which displays your guest profile as a default) and clicking the “Switch to hosting” button found in the top right corner of the page, or by navigating directly to your Airbnb dashboard.

If you attempt to navigate to the hosting dashboard without having posted a listing, you’ll be directed to ‘list your space’, which will send you straight into the process of uploading a listing.

Features within the Airbnb host login dashboard

Through its host login Airbnb offers you a number of unique tools and features to help you enhance the guest experience, bookings and profitability of your property. Three of the most important and useful are:

Calendar

Offering a complete view of your reservations, the Airbnb calendar lays your bookings out in a clear and concise way in a scrollable calendar. When you click on a reservation the booking details, pricing and availability will be displayed in the side panel. When you click on an available date, the side panel will display editable pricing and availability information.

Insights

Learn all you need to know about how your listings are performing and how that performance might be improved in the ‘Insights’ feature, which offers up actionable information about earnings, reviews, views, Superhost performance and any listing issues. Airbnb more or less tells you exactly what you need to do to succeed on the platform, so it’s important to review this information regularly.

Professional hosting tools

Professional property managers would be wise to switch on the optional ‘professional hosting tools’ feature, which grants you access to deeper insights, and offers a simpler way to manage multiple listings. You’ll gain access to a large number of tools, such as a multi-calendar, a listings page, ‘Pro marketing’ tools, and dedicated tax, teams and tasks tools.

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How to log into my account as an Airbnb host: a step-by-step guide

As an Airbnb host, it’s simple to login to your account. The process of creating, logging in and using Airbnb as a host is much the same as a guest.

Step 1: Sign up to Airbnb

If you already have an Airbnb account you can skip this step, but if you don’t, navigate to the Airbnb homepage and click ‘Sign up’. Follow the prompts to create your account, either with your email or by using your Facebook, Google or Apple login details.

Step 2: Navigate to Airbnb.com

Armed with an active account, head to Airbnb.com or open the Airbnb app. On the website you’ll find the ‘log in’ button in the top right corner of the homepage. You’ll be asked to log into the app when you open it for the first time.

Step 3: Enter your details

When the login screen pops up, enter your details – either your email address/phone number and password, or by clicking ‘continue with Facebook/Google/Apple’ if you chose to use those details. When you log in from a certain device for the first time, a 2FA code may be sent to your phone or email to verify the login.

Step 4: Head to your hosting dashboard

You may be directed straight to the hosting dashboard on login, but if you are instead shown your traveller profile (which will show a range of properties that you can book), you can navigate to your hosting dashboard by clicking on the ‘Switch to hosting’ button in the top right corner.

Ways to secure your Airbnb login as host

1. Secure your login details

Avoid leaving your login credentials where others can find them, such as a Post-It note stuck to your computer screen. It’s wise to avoid writing them on paper altogether, unless you keep that paper under lock and key.

2. Use a password manager

Perhaps the most efficient and effective way to keep your login details safe is in a password manager like LastPass or the tool built into Google Chrome.

3. Two-factor authentication

Always use 2FA for all important online accounts. Airbnb uses multi-factor authentication as standard – it will ask you to verify your identity whenever you log in from a new device or location.

4. Use trusted networks

Wherever possible avoid logging in to Airbnb on open and/or public Wi-Fi. Use private, password protected networks instead.

5. Review your account activity

While Airbnb is good at identifying and preventing suspicious logins, it’s wise to review account logins regularly to ensure unauthorised users haven’t snuck in. Head to Account > Login & Security > Device History to check yours.

Competitor-based pricing or competition-based pricing is a data-driven approach where businesses use advanced analytics to set their prices based on competitors’ rates. In the hotel industry, this involves leveraging sophisticated pricing algorithms and software to monitor, in real-time, the room rates of comparable hotels.

But it’s not just about matching or undercutting competitors’ prices. This strategy uses statistical models to predict optimal price points that maximise revenue and occupancy. These models factor in variables such as historical booking patterns, seasonality, local events, and even guest reviews.

The goal is to provide hoteliers with a dynamic pricing strategy that responds to both market and property-specific conditions.

Why use competitor based pricing for hotels?

With the modern popularity of online booking platforms and how easy it is to compare hotel costs for guests, providing competitive pricing no matter where you’re listing is crucial for success. Competitor-based pricing provides that at a foundational level by ensuring that your hotel never loses sight of the competition. Competitor based pricing gives you access to:

Algorithmic pricing

Modern pricing tools use algorithms that factor in a multitude of variables. These algorithms aren’t just about tracking competitors but understanding the entire market ecosystem.

Real-time data analysis

Competitor price intelligence tools fetch real-time competitor pricing data. This means that hotels can make better pricing decisions, faster, responding to market trends and changes quickly and expertly to maintain their competitive edge.

Multichannel insights

Advanced pricing tools incorporate multichannel insights on guest booking trends, giving you insight into the performance of each of your online distribution channels—by revenue and room nights generated—along with the impact of your online marketing campaigns to understand exactly where your website visitors are coming from and what calls-to-action are driving conversions.

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Advantages of a competitor based pricing strategy

Why should revenue managers monitor their competitors’ prices? And why use competitor based pricing? Competitor-based pricing offers several technical and strategic advantages:

Predictive analysis

This isn’t just about understanding the past but predicting the future. By analysing historical data, hotels can forecast demand, ensuring they’re always ahead of the curve.

Dynamic pricing

The ability to adjust prices multiple times a day based on real-time market conditions ensures the hotel remains competitive at all times.

Data visualisation

Modern tools provide intuitive dashboards that visually represent pricing data. SiteMinder, for example, provides a single dashboard for you to stay on top of your local competitors’ pricing without having to manually monitor each throughout the day. This visual representation makes spotting trends and making informed decisions easier for hoteliers.

While there are many other types of pricing models, ultimately competitor-based pricing does what it says on the packet: beats your competition on price.

How to implement a competitor based pricing strategy

Implementing a competitor-based pricing strategy involves a blend of technology and strategy:

1. Data integration

Ensure your Property Management System (PMS) is integrated with pricing tools for seamless data flow.

2. Competitor benchmarking

It’s not just about knowing their prices. Understand their promotional strategies, guest reviews, and overall brand positioning.

3. Algorithm configuration

Tailor the pricing algorithm to your hotel’s specific goals. Whether you’re looking to maximise occupancy, revenue, or both, the algorithm should reflect that.

4. Automated price adjustments

Set up triggers for automatic price adjustments. For instance, if a competitor drops their price by 10%, your rates could automatically adjust to remain competitive.

5. Continuous monitoring

The market is dynamic. Regularly review your pricing decisions, understand their impact, and refine your strategy accordingly.

Modern hotel management isn’t just about hospitality; it’s about harnessing technology to stay ahead. Integrating advanced pricing tools with your existing PMS is crucial. These tools, often cloud-based, offer real-time insights, predictive analytics, and automated adjustments. 

For hotel groups and chains, solutions like SiteMinder’s pricing analytics can be a game-changer. Our software not only provides competitor data but also provides an integrated booking platform, ensuring you have a holistic view of the market.

Competitor based pricing example

Consider two luxury hotels in London. 

1. Hotel A uses a basic pricing strategy, adjusting rates seasonally. 
2. Hotel B employs a sophisticated competitor-based pricing tool. 

Hotel B’s tool, integrated with a cloud-based PMS, fetches real-time data on competitor rates, local events, and even weather forecasts. When a major event is announced in London, the tool predicts a surge in demand and automatically adjusts Hotel B’s rates. As a result, Hotel B sees a significant increase in bookings and revenue, showcasing the power of a dynamic, data-driven pricing strategy.

By embracing the technical intricacies of competitor-based pricing and leveraging advanced tools, hotels can navigate the complex pricing landscape with precision and agility. This approach ensures they remain competitive, maximise revenue, and cater effectively to their target audience.

Value-added pricing, also known as value-based pricing, is a pricing strategy in which a hotel sets its prices based on what a customer believes the value of a room or service to be. 

It’s different from most other strategies, in that the price isn’t based on a tangible metric like supply and demand or cost (though cost must still be considered to ensure you’re generating profit, not just revenue).

Luxury goods such as designer handbags, fine wines and Swiss watches are prime value added pricing examples. The material and labour costs to produce these goods aren’t that high, but the reputation of the brand or the region in which the item is made means that customers are willing to pay more.

But what is value based pricing in hotels specifically? Read on to find out.

Why should hotels implement a value added pricing strategy?

Your hotel can potentially make more money from value-added pricing than from any other strategy. When you work hard to build a great guest experience, people will be willing to pay more to experience it.

This does mean that the successful implementation of a value added pricing strategy begins by crafting a truly alluring and unique guest experience that will get people talking. But if you manage to do it, the increased demand will allow you to set your prices far higher across your distribution channels, even if your costs remain relatively low. 

This can greatly improve your revenue management efforts, helping to optimise both room occupancy and the average rate paid for each room.

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How does value added pricing work in hotels?

Value-added pricing is all about how a guest perceives the value of the experience you offer. You can positively alter this perception, and therefore charge more for your rooms and services, by enhancing your hotel’s reputation. This can be achieved in two main ways:

• Through marketing and branding efforts: Focus your marketing on the quality of your guest experience, specifically on any market-leading aspects of your offering. Capture and create high quality content that puts your hotel and services in the very best light.
• Through ratings and reviews: Reviews are critical to your value-added pricing efforts, as potential guests see feedback from previous guests as objective evidence of the quality of your offering. Do all that you can to get happy guests to leave a review: remind them at check-out, send follow-up emails and consider offering an incentive.

How to create a value-added pricing strategy

Here are eight important steps to keep in mind when creating a value-based pricing strategy at your hotel:

1. Identify your market

To understand how a guest values your rooms and services, you first need to understand who that guest is. Consider who you want to target, and check Google Analytics and the demographics of your social media followers to understand what your ‘average’ guest currently looks like.

2. Determine what guests value

Why do your guests choose you? What does your hotel do better than anyone else? Identify your most popular rooms and services. Check reviews to see what guests are raving about. Consider focusing more on these popular offerings moving forward.

3. Set pricing

Because value-added pricing is based on customer perception, there isn’t a simple formula to work out what you should be charging. It’s instead a matter of taking your break-even point or average daily room rate (ADR) as a baseline, then increasing the price based on what you think a guest may be willing to pay.

One way to work out that increase is to survey your customers on what they believe your big ticket items are worth. They might see an ocean view as worth $50 a night, a hot tub as $80, a one hour massage as $100. 

You can then use these figures to calculate a price for each room and service. You can also see what competitors are charging for similar items.

4. Highlight value-added services

It might be that you only use a value-added pricing strategy for certain rooms or services – in which case you should work hard to promote these offerings, as they will be the most profitable. Post about them on socials, advertise them online, and place printed materials in every room.

5. Pricing tools 

A tool like SiteMinder Insights can prove invaluable in crafting value-added pricing, as it gives you a clear picture of customer demand and how your pricing compares to the wider market. You might also consider offering a mobile-only price through booking channels that allow it, to further add to the perceived exclusivity, and therefore perceived value, of your offering.

6. Track revenue

Track your revenue performance to identify trends that can further inform your value-added pricing strategy, such as peak periods when you can charge far more.

7. Competitive analysis

Remember that your pricing is inextricably linked to that of your competitors. Compare your rates to direct competitors, and consider whether price differences are a true reflection of the differences in your offerings and reputation.

8. Feedback

After they check out, ask guests how they would rate the value of their stay. Use these insights to inform your value-added pricing strategy moving forward.

“If I had to describe SiteMinder in one word it would be reliability. The team loves SiteMinder because it is a tool that we can always count on as it never fails, it is very easy to use and it is a key part of our revenue management strategy.”

Raúl Amestoy,

Assitant Manager

Hotel Gran Bilbao

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Value added pricing example

Hotel A and Hotel B are next door neighbours. They are terraced properties with more or less the same layout. Hotel A has been doing the same thing for decades. Hotel B is new and looking to earn more with a value-based pricing strategy.

Hotel B paints itself as a more exclusive, luxurious option. It targets a specific market, designs a range of value-added services, and carefully manages its online reputation. Over time, it becomes a more alluring option than Hotel A, and eventually charges $100 more per room due to the quality that its guests perceive.

Dynamic pricing is a pricing strategy for hotels that involves changing room rates daily, or even within the day based on real-time market conditions.

Taking supply and demand into account, dynamic pricing allows for prices to fluctuate regularly so the hotel can maximise revenue. This pricing option is well suited in today’s market and is one many hoteliers opt to use.

For example, in the morning you may have lower rates because your occupancy is low and demand is not strong. However, by evening your supply may have reduced and demand could be growing. Naturally, you want to increase rates at this point.

This blog will give you a full guide to hotel dynamic pricing, how it works, and the best ways to implement it at your business.

What is the difference between static and dynamic rates for hotels?

The difference between static and dynamic rates for hotels is that one is relatively rigid and the other is based on real-time market data.

Static rates are a traditional way of pricing hotel rooms which usually includes a standard weekday rate, elevated weekend rate, and increases during peak seasons. A static rate would be unaffected by external factors such as fluctuations in traveller demand or changes in competitor behaviour.

Dynamic rates, on the other hand, take all that information into account to give hoteliers the information they need to maximise revenue at all times. A dynamic rate is one that could change by the day, or even the hour, depending on current market conditions.

Today, dynamic rates are much more useful for running a profitable hotel business than static rates.

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Why is dynamic pricing important for a hotel?

Dynamic pricing can be an important strategy for a hotel that’s looking to optimise occupancy and maximise profit.

By tracking market conditions in real-time, hotels can both prevent too many rooms staying unoccupied and rooms being sold for less than their maximum potential value.

Here are some of the advantages of using dynamic pricing at your hotel:

• Boost occupancy – When demand drops, you can drop your rate to increase the chances of a booking.
• Maximise profit – When demand is high and supply is low, you can sell remaining inventory at higher rates.
• Improve forecasting – Compare historical data with current market conditions to get an idea of what you can set your rates at in the future.
• Beat your competition – Acting on market fluctuations will allow you to get ahead of your competitors, who may not be as switched on.
• Understand traveller booking behaviour – See how customers respond to changing market conditions and prices to get insight into how to better target them in the future.

However, dynamic pricing isn’t always perfect. As with any strategy, there are potential drawbacks that hoteliers need to be aware of.

Some of the risks associated with dynamic pricing include:

• Customer confusion – If prices are changing from morning to night, some travellers may start to question the price integrity of a hotel.
• Stakeholder management – While revenue managers will certainly be looking for any chance to maximise revenue, marketers and those in charge of brand may not be as comfortable with regular fluctuations.
• Technology barriers – To get dynamic pricing right, multiple systems usually have to be used and integrate seamlessly to ensure data is accurate and up-to-date.
• Brand perception – Does dropping your prices too low devalue your brand, and does pushing them too high alienate some of your loyal guests?
• Long-term success – If travel agents or travel companies find it hard to budget and book with you because of variable prices, will they take you out of consideration in the future?

“SiteMinder has also improved their solutions by providing business analytic tools. It works effectively and efficiently, and when market demand fluctuates we are able to change our pricing strategy in a timely manner, to optimise the business opportunity.”

Annie Hong,

Revenue and Reservations Manager

The RuMa Hotel and Residences

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How does dynamic pricing work in the hotel industry?

Dynamic pricing in the hotel industry works by adjusting room rates based directly on real-time market conditions such as special events, competitor behaviour, weather, customer behaviour, and general supply and demand.

The hotel revenue manager will track what’s happening in the market throughout the day and week to pick up on any noticeable changes. This will allow them to capitalise on opportunities to boost occupancy and/or maximise revenue.

Let’s see how this might work in real life…

Dynamic pricing example for a hotel

A good dynamic pricing example for a hotel is when something out of the ordinary happens that enables hoteliers to respond and adjust their rates.

For instance, let’s say your hotel’s standard room rate is $210 per night when not in peak season. On weekends, it’s $220 and in peak season it’s $250.

Then, Taylor Swift announces a tour and your city is on the list of destinations she’ll be playing in. The dates for her shows fall on what would normally be a ‘standard’ Friday and Saturday night.

Tickets go on sale and excited fans snap up their tickets, with their attention quickly turning to accommodation for a night or even the whole weekend.

If you kept your rates static, your hotel would likely be the best deal around and you’d sell out your entire inventory for that weekend – potentially missing out on a lot of revenue.

However, if you react to the breaking news of the tour announcement by increasing your rates and even creating new packages, you’ll earn more from every booking than you normally would have.

Then, when supply dips lower as the date draws nearer and more hotels are selling out, you can raise your rates again because demand is still high for those who are booking with a smaller lead time.

Depending on your strategy, you might also try to entice some guests to increase their length of stay to take in more nights than just the dates of the show.

For instance, you could lower your rates back down for Sunday or Monday when most people might be flying out and airports would be busy and expensive. This could help maintain some of your occupancy and keep the revenue flowing in for a little longer.

This is an example of how dynamic pricing can work for a hotel.

Hotel dynamic pricing algorithm

A hotel dynamic pricing algorithm can be used to focus on particular areas of the market and what responses should be made.

It’s a set of rules to follow to achieve a set desired outcome. For example, an algorithm might be created to watch competitor occupancy and room rates to price match, undersell to win occupancy, or oversell to maximise revenue when they are sold out.

Often, algorithms are run by machines and there are dynamic pricing systems available to hotels. But algorithms can also be done manually. For instance, a recipe is also an algorithm.

Most hotels will have some kind of software to help them track real-time market conditions, before they decide how and when to adjust rates. Others ways use a completely automated approach, whereby the system will adjust the rates for them based on preset parameters and rules.

5 best ways to use dynamic hotel pricing

There are a few ways to put dynamic pricing into action and also some different ways to analyse performance and make adjustments.

Here the five best ways to apply dynamic pricing at your hotel:

1.Tracking occupancy

Keeping an eye on your own occupancy and comparing it alongside your competitors is a great way to price your hotel to advantage. If you notice your closest competitor sell out, it means you then have a monopoly on supply. This allows you to sell your remaining inventory at a higher rate.

Similarly if your occupancy is low and you could lower your rate to ensure it is less than what your competitor is charging. This will help your hotel drive more demand than other properties in the area.

2. Responding to abnormal market conditions

On some days, there might be a high number of flight cancellations due to weather or other factors. It pays to take notice of what’s happening around you in real-time so you can quickly capitalise on opportunities to capture extra bookings or maximise profit.

3. Creating ‘peaks’ outside of peak season

Events like the Taylor Swift example allow you to forecast stronger periods of performance and plan ahead throughout the year, instead of relying solely on your traditional peak season to cash in.

4. Learn guest segment patterns

If you notice particular booking patterns such as more last-minute reservations at a certain time of year, or a particular audience segment opting for packages, you can start to forecast more accurately and strategise for greater success.

5. Experiment with room type preferences

In summer, people might be more concerned about getting a room with a view than they are in winter, for instance. Or, you might notice the rooms close to the bar and restaurant are much more popular on weekends, while rooms closer to the gym or work spaces are more popular during weekdays.

Dynamic pricing best practices for hotel groups and chains

Hotel groups and chains often struggle with efficiency – with multiple properties and a lot of rooms and room types to sell, getting new offers created and out to market quickly is important.

But it’s hard to take a dynamic approach to this, because by the time everything has been done the market has changed again.

Here’s a few best practices that will help:

• Know the market intimately – Understanding peak season, shoulder season, and low season in detail will enable you to identify fluctuations and opportunities much easier.
• Understand the customer fully – By knowing what your guests are looking for, when they look, and how they book will allow you to anticipate market changes and react appropriately.
• Monitor trends constantly – By monitoring market trends and competitors all the time, you won’t be caught napping and will always be in a position to boost occupancy, ADR, and RevPAR.
• Be aware of the pitfalls – Some of the risks we mentioned in this article can have detrimental effects if not managed properly. Always try to make sure your loyal guests are kept happy because they represent lifetime value.
• Use the right software – Using technology that can accommodate large scale operations and accelerate backend processes will help significantly. Look for a leading hotel platform that has specific offerings for hotels in the enterprise space.

An Agoda channel manager is a tool designed to help hoteliers optimise their online presence across Agoda’s extensive booking platform. 

By facilitating real-time synchronisation of inventory and rates, an Agoda channel manager (such as SiteMinder) acts as a bridge between your hotel’s management system and Agoda’s booking engine, ensuring consistency and reducing the risk of overbookings through real-time inventory management, rate management, booking management, auto sync, and more.

Why should hotels consider a channel manager for Agoda?

In a digital age where online visibility directly correlates with booking rates, having a reliable channel manager is crucial. Agoda, being one of the leading online travel agencies (OTAs), provides a vast and valuable audience.

But with this opportunity comes risk: failing to adequately update listing information, particularly availability of rooms, on Agoda (and any other OTAs that your rooms may be listed on), could easily result in double bookings, incorrect prices, and ultimately, disappointed guests.

A channel manager automates and streamlines this process, providing you with a single source of truth from which to update all of your listings across Agoda, syncing it with your existing inventory and ensuring that when guests find your rooms on Agoda, they’re getting the most up to date information available. 

But that’s not all. A channel manager not only streamlines the process of updating your listings but also unlocks the potential for increased revenue through higher online exposure and insightful analytics to understand booking trends.

How does an Agoda channel manager work?

At its core, an Agoda channel manager operates by providing a seamless link between your hotel’s property management system (PMS) and Agoda’s platform. It automates the updating of availability, rates, and reservations across the platform, ensuring that the information displayed to potential guests is accurate and up to date.

In other words, you can log into your channel manager, change any detail for a given listing, and the channel manager will automatically update across the entire Agoda platform. This can be everything from pricing to room descriptions to amenity changes.

Perhaps most importantly, this includes room availability. Once a room is booked on Agoda, the channel manager ensures that it’s taken off the market, eliminating the potential for double bookings. 

In the cases of the best hotel channel managers, this availability is then synced across all other OTAs as well, such as Booking.com – a channel manager is OTA agnostic.

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Features of the SiteMinder Agoda Channel Manager

While Agoda channel managers all broadly strive to achieve the same thing – streamlining the hotel management process – not all channel managers are made equal. The SiteMinder channel manager, for example, is designed exclusively for medium to large hotels, addressing key and unique challenges for this sector that broader, less tailored solutions can’t, don’t or won’t.

Here are just a few of the key features:

Real-time inventory management

The heart of effective hotel management lies in the accurate tracking and updating of room availability. Our Agoda channel manager excels in providing real-time inventory updates, ensuring that the room statuses across all platforms are consistent.

This feature significantly reduces the risk of overbooking, a common issue in the hotel industry that can tarnish your establishment’s reputation. Moreover, with real-time updates, last-minute bookings are handled seamlessly, making sure you maximise your room occupancy and revenue.

Rate management

Pricing is a dynamic aspect of hotel management. Our Agoda channel manager comes with a robust rate management feature, enabling you to implement dynamic pricing strategies effortlessly.

Whether it’s adjusting room rates based on seasonal demand, day of the week, or even local events, this feature ensures your pricing remains competitive. Additionally, you can set up special promotions or discounts to attract more bookings during low-demand periods, all with a few clicks.

Booking management

Handling reservations, cancellations, and modifications is a breeze with our Agoda channel manager. The system centralises all booking information, providing a clear overview of your reservations.

This not only reduces the administrative burden but also enhances the guest experience as any changes to their booking are reflected instantly.

Auto sync

The auto-sync feature is all about ensuring consistency across the board. Any changes made in your property management system (PMS) are automatically reflected on Agoda’s platform.

This bidirectional synchronisation ensures that your hotel’s information, whether it’s room availability, rates, or booking conditions, remains accurate and up-to-date on Agoda’s platform.

Analytic reports

Data-driven decisions are key to growing your hotel business. SiteMinder’s Agoda channel manager’s analytic reporting feature provides crucial insights into your hotel’s performance on Agoda’s platform.

Understand booking trends, guest preferences, and the effectiveness of your pricing strategies through comprehensive reports. This feature empowers you to make informed decisions to enhance your online visibility and increase bookings.

Benefits of using an Agoda channel manager

Utilising Agoda Channel Manager through SiteMinder not only simplifies the operational aspect but also propels your hotel into a wider market, ultimately driving growth in bookings and revenue. It’s an all-in-one solution tailored for hoteliers who are keen on elevating their online presence without the technical hassle.