Commercial Performance · May 2026 edition
Revenue Management in a Volatile Market
HOLLISMERE Hospitality Advisory · Published 16 September 2026 · 2 min read
When demand is uncertain, constant rate changes can create the appearance of control without a clear commercial strategy. A more useful response starts with the type of business the hotel wants, the evidence available and the contribution that business can make.
Read the booking pattern
Review pace, cancellations, lead times and segment mix together. Compare like-for-like periods and account for events, calendar shifts and inventory changes before drawing conclusions.
Treat forecasts as working views that improve as evidence develops. Record the assumptions behind significant pricing or inventory decisions so the team can learn from the results.
Protect value as well as volume
Before discounting, consider whether the obstacle is price, visibility, product fit or the conditions attached to the offer. A lower rate cannot solve every demand problem.
Use targeted offers with a clear purpose and review their contribution after acquisition costs and inclusions. Avoid allowing a temporary promotion to become an unexamined default.
Align distribution and operations
Different channels and segments can bring different costs, cancellation patterns and service needs. Evaluate the total business rather than comparing headline room rates alone.
Share demand changes with operations early. Commercial decisions affect staffing, purchasing and guest expectations; an offer should be deliverable at the service standard promised.
Create a consistent review rhythm
Use a concise commercial meeting to agree what changed, which actions are needed and who owns them. Link revenue management with sales, marketing and finance rather than isolating pricing decisions.
After major trading periods, compare the outcome with the original reasoning. Keep useful lessons and retire tactics that did not work. This builds discipline without pretending that every market movement can be predicted.
General advisory perspective, not advice tailored to an individual asset or a guarantee of results.
Further reading: HFTP’s Uniform System of Accounts for the Lodging Industry provides a framework for consistent hotel financial reporting.
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