Smart strategies: Cutting-edge techniques and tools for optimising revenue management

By Chris de Closey, Director, Switch Hotel Solutions

Revenue management used to be a dark art, often left up to the numbers person who knew it all like the back of their hand.

Some Revenue Managers used to use a few spreadsheets, a competitor check once a week, and a gut feel based on “how it went last year.” If occupancy looked healthy and rates seemed okay, you were doing alright.

This approach doesn’t cut it anymore in the modern day.

The landscape has changed. Guest behaviour is more dynamic and unpredictable, booking windows are shorter, distribution channels are multiplying by the day, and the ease of Online Travel Agents means you’re always being compared to your competitors. Revenue optimisation today is about your systems, the trends or signals you pick up, and speed to update.

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We manage over 130 properties revenue management for them, and watch what actually moves the needle. This article isn’t theory. It’s what works now.

Stop pricing in isolation

One of the biggest mistakes I still see is pricing decisions being made in a vacuum.

“We increased rates because demand feels strong.” “We dropped prices because bookings slowed.”

That’s not revenue management, its simply reaction.

Modern revenue optimisation starts with market awareness. You need to understand:

• Where you sit in the comp set (not just price, but value).
• How competitors are moving right now, not last week.
• What’s happening in your destination (events, flight capacity, school holidays, weather).

Cutting-edge revenue teams monitor this daily. They track:

• Bottom-of-market vs top-of-market positioning.
• Refundable vs non-refundable rates.
• Minimum stay strategies across competitors.

The goal isn’t to match prices, its to ensure you own your position in the market.

Dynamic pricing isn’t optional anymore

Static pricing is the killer of revenue for all accommodation providers.

If your rates don’t move regularly, you’re either:

• Leaving money on the table during high demand, or
• discounting too early during soft periods.

Dynamic pricing doesn’t mean constant chaos. It means having clear guidelines:

• Floor rates (or can be called minimum rates) that protect profitability.
• Ceiling rates that reflect true peak demand.
• Incremental increases as pickup accelerates.

The smartest operators adjust pricing based on:

• Pickup velocity (how fast rooms are selling).
• Remaining inventory vs days to arrival.
• Channel mix (direct vs OTA).

If your pricing only changes once a week, you’re already behind.

Distribution strategy matters more than ever

Revenue optimisation isn’t just about how much you charge, it’s about where you sell.

OTAs are powerful, but they’re not neutral. Each channel has:

• Different guest types.
• Different booking behaviours.
• Different cost structures.

Smart revenue strategies actively manage:

• Channel mix by season.
• Rate parity (and when to break it strategically).
• Direct booking incentives that don’t destroy ADR.

This doesn’t mean “OTAs are bad, direct is good.” It means intentional distribution and a clear understanding of the levers to pull. If 70 percent of your bookings are coming from one channel, you’re exposed. Diversification isn’t just a finance concept, it’s a revenue one.

Related AccomNews story: Leveraging data for smarter revenue management

Tech is a tool you need to use

There’s no shortage of revenue management software, pricing tools, dashboards, and automation platforms. Some are excellent. Some… less so.

Here’s the truth: Tech doesn’t replace strategy nor does it replace a human—it amplifies it.

The best tools do three things well:

1. Centralise data (no more spreadsheets saved in a million different places).
2. View your insights quickly (not buried in a number of different filters).
3. Enable faster decision

Dashboards that show:

• Daily pickup vs forecast,
• revenue by channel,
• ADR vs comp set
• booking window shifts

…are infinitely more valuable than complex systems no one checks.

Technology should support human judgement, not override it.

Revenue management is a team effort

One of the most overlooked elements of revenue optimisation is alignment.

Revenue doesn’t sit in a silo. It’s influenced by:

• Marketing campaigns,
• sales initiatives,
• guest experience, and
• operations and housekeeping capacity.

If revenue is pushing aggressive pricing while marketing is discounting, you’re leaking value. If ops can’t support high-value bookings, you’re damaging reputation.

Everyone understands the goal. Everyone plays their part.

Measure what actually matters

Occupancy alone is vanity. ADR without context is misleading. Revenue without profitability is dangerous.

Smart operators track:

• Revenue per available room (RevPAR).
• Net revenue after commission.
• Booking value by channel.
• Lead time trends.
• Cancellation behaviour.

The question isn’t “did we fill rooms?” It’s “did we maximise the value of the demand we had?”

Related AccomNews article: RoomPriceGenie and 15 PMS partners launch revenue intelligence inside the PMS

Revenue is never “set and forget”

Revenue management is not a one-off project. It’s a living system.

Markets shift. Guests evolve. Channels change. What worked last year might quietly underperform this year and you won’t notice unless you’re looking.

The operators who win aren’t guessing. They’re watching, testing, adjusting, and moving faster than the market.

And the best part? Once the system is in place, it makes life easier, not harder.

More clarity. Better decisions. Stronger results.

Not sure where to start? Switch can help with a tailored revenue solution for every client, we get the results you are looking for.

If you’d rather do it yourself and are looking for some great Revenue Management Systems, we are big believers of RoomPriceGenie, recently voted #1 revenue management system. Easy to use and makes your life easier. If your budget allows, pair this with some market insights tools like Lighthouse & STR.

Whatever you do, tech is here to make your life easier! Ensure you take advantage of the onboarding support any company gives you.

This article first appeared in the Summer edition of AccomNews. Click below to explore.