The Evolution of Revenue, Distribution, and Commercial Management

Hospitality Net

28-05-2025

The evolution of revenue, distribution, and commercial management fundamentally shapes how the hospitality industry operates. Hotels are increasingly recognizing that their sales, marketing, and revenue strategies can no longer operate in isolation. Guest expectations are also shifting. Traditional silos are breaking down. This leads to integrated, data-driven approaches. A guest-centric focus is emerging. Commercial management is at the forefront, taking a holistic view. This includes revenue generation. It optimizes distribution. It also covers strategic sales and marketing. Shiji Insights spoke with Annemarie Gubanski, CEO of Taktikon. We discussed these critical shifts. Her insights reveal a combination of human intuition and tech intelligence.
Takeaways
Commercial Management Evolution: Revenue management now is holistic commercial management, overseeing all revenue streams.
Human & AI Synergy: Optimal decisions combine human intuition with AI efficiency in hospitality.
Dynamic Pricing Key: It optimizes public rates, offers flexibility, and balances corporate rate needs.
Strategic Distribution: Prioritize channels by market, control guest experience, and boost direct bookings.
Future Trends: Hyper-personalization and AI are crucial, underestimated trends for hotels to adopt early.
Strategic shifts in Revenue Management
In recent years, how have you seen the role of revenue management evolve beyond traditional pricing and inventory control? What emerging metrics or KPIs do you believe are becoming crucial for modern revenue strategies?
The role has evolved significantly over the years. I've noticed a distinct shift from traditional revenue management to a more comprehensive approach and commercial management. Today, we are a key player within the commercial department, working closely with both the Sales and Marketing teams to drive the overall business strategy.
Our responsibilities have expanded beyond managing Room Revenue. We now oversee all hotel revenue streams, including rooms, food & beverage, events, and ancillary services. This shift necessitates a closer collaboration with operational departments, as their input is crucial in driving performance across all areas. As the role becomes more holistic, we need to ensure that every department is aligned and working towards common goals. Optimizing overall revenue generation.
Data-driven decisions
With the influx of data analytics and AI in revenue management, how do you balance automated insights with human intuition? Are there scenarios where gut feeling should override data?
I fully embrace technology; it truly enhances our decisions, helping us make them smarter and quicker. The ideal is combining intuition with data. The ideal scenario is when we can combine intuition with data-driven decision-making. The strength of humans lies in their creativity and ability to explore new paths and innovative solutions. On the other hand, technology excels in making fast, efficient decisions and processing vast amounts of data. It is the synergy between the two: human creativity and technological intelligence, that creates the perfect balance. Without humans, innovation and progress would stagnate, and without technology, we would struggle to achieve the level of intelligence and efficiency needed for continuous growth.
Annemarie Gubanski, a leading voice in hospitality, champions agile strategies for hotels in a dynamic market. — Photo by Shiji
Dynamic pricing
What are your thoughts on dynamic pricing in hotels? How effective is it? What should hotels consider when using it?
Dynamic pricing is crucial for Revenue Managers in the hospitality industry. It has proven to be highly effective, particularly in managing public rates. It allows for the optimization of rates based on demand fluctuations, market conditions, and competitor pricing. Ultimately leading to maximizing revenue. This flexibility is essential for staying competitive and adapting to market changes in real time.
When it comes to dynamic corporate rates, I think a blended approach works best. Incorporating both fixed and dynamic rates allows for greater flexibility. Catering to different client needs while maintaining a stable revenue stream. It is important to avoid overly generous discount percentages, as this can undermine the pricing strategy and might drive up the public rates in order to avoid a decrease in ADR coming from dynamic corporate rates. Dynamic corporate rates tend to be more suitable for smaller corporate clients that have more flexible booking patterns. Larger companies often require more predictable pricing.
Navigating the distribution channel landscape
Many distribution channels exist. What key factors decide channel priority? This is for a hotel or brand.
When prioritizing hotel distribution channels, several key factors are critical. Understanding our target market is essential. We must determine where potential guests prefer booking via OTAs, our website, metasearch, or corporate platforms. Aligning channels with our primary demographics' preferences is vital.
Control over guest experience is another crucial factor. Direct bookings allow greater control over pricing, brand messaging, and guest relationships. This control helps build loyalty and maximize long-term revenue. Conversely, OTAs offer broader reach but limit our control over pricing and guest data.
Analyzing channel performance is also essential. Monitoring conversion rates, average stay lengths, guest demographics, and booking patterns helps make informed decisions. This data-driven approach allows continuous refinement, focusing efforts on top-performing channels.
Ultimately, it's about balance, utilizing OTAs to drive volume and boosting direct bookings through website optimization, loyalty programs, and targeted marketing.
Direct vs. OTA Bookings: Strategies for independence
What are some of the most effective strategies you've implemented to reduce dependency on OTAs while maintaining occupancy and ADR? Please share some real-life examples if possible.
We've observed that independent hotels often face significant challenges in reducing their reliance on OTAs. Larger brands have a clear advantage due to their established reputation and loyal customer base. Since most of our clients are independent hotels, we believe the best strategy starts with strong digital marketing.
Unlike many marketing agencies that allocate Google Ads budgets to bid on a hotel's brand name, we've found that this approach often has a negative impact. It results in lost room revenue because these hotels get less business from OTAs. We believe that OTAs should receive their fair share, as they are essential for reaching potential guests globally. Our most successful strategy is to focus marketing spend on promoting a hotel's unique selling points (USPs) and attracting customers who are specifically looking for the unique experiences our properties offer.
Tech integration: Seamless adoption
How do you assess and integrate new tech, including distribution platforms? How do you do it without disrupting operations?
When integrating new distribution technologies into an existing tech stack, ensure the solution aligns with hotel operations and goals. Begin by evaluating the technology's capabilities, confirming it meets specific needs like expanding reach, optimizing pricing, or improving guest experiences. Check compatibility with existing systems such as PMS, channel manager, and RMS.
Integration should be gradual and planned, involving close collaboration with internal teams and technology providers to reduce downtime. Implement a phased rollout, initially integrating on a smaller scale or for specific segments. Ensure stakeholders are comfortable before fully implementing changes.
Continuously monitor performance and gather feedback. Address any issues proactively to ensure seamless integration without disrupting daily operations. Aligning closely with the hotel's strategic objectives and involving key departments ensures smooth adoption and maximizes the new technology's benefits.
A holistic approach to commercial management
Commercial management often involves aligning sales, marketing, and revenue strategies. Can you share an example of when aligning these functions significantly impacted a hotel's performance?
When I started my career, departments often worked in strict silos. Over the years, however, I've seen significant improvement, and now we collaborate more closely. We've found that we can significantly enhance the distribution mix by working alongside the marketing team, especially since we typically manage the OTA channels, which are a crucial part of the distribution strategy for many independent hotels. By working together, we can identify key demand periods and align on the best strategies to move forward.
Regarding the In-house Sales department, we've always seen them as essential partners for Revenue Managers. Their decisions can be the difference between success and failure. Too many rooms or incorrect pricing for group bookings can completely disrupt specific days or periods. Often 'breaking the silos' means a closer cooperation with Marketing and Corporate Sales. Still, in-house sales are equally important, and we always try to work very closely with these departments.
Cross-departmental collaboration
What are some challenges you've faced when breaking down silos between commercial teams at a hotel? Could you describe a scenario where fostering collaboration led to improved performance?
Breaking down silos within the commercial departments is crucial. However, bridging the gap between the commercial teams and the operational functions is the real challenge. While we can optimize the availability of restaurant seats, meeting rooms, and spa facilities, we don't manage the menus, seating arrangements, staffing, or room cleaning. If we can successfully integrate these operational areas with our commercial strategies, we can truly start focusing on maximizing profits.
Market adaptability in a dynamic environment
In such a dynamic market, how do you ensure that commercial strategies remain agile and are adapted in real time?
In a rapidly changing market, the ability to remain agile is critical. We must proactively embrace market shifts and trends, allowing us to adjust our approach quickly. By continuously monitoring data and closely collaborating with all departments, we ensure that our strategies are reactive and anticipate changes. Enabling us to adapt in real time and stay ahead of the curve.
Time is of the essence when it comes to developing and adapting commercial strategies. By that, I mean we need to allocate time for change. This is easier said than done, especially in hotels, where numerous factors constantly change and resources can be limited. However, from my experience, investing in the flexibility to adapt is crucial. It enables us to stay ahead of the competition and ensures we are always prepared for the next shift in the market.
Targeting and segmentation
In terms of personalisation, how do you approach market segmentation to create highly targeted sales and marketing campaigns?
The 'old' segmentation model is no longer effective, especially for the individual leisure traveler. Simply categorizing guests as 'Leisure Individual' versus 'Leisure Group' is too simplistic. Leisure travel is on the rise, and today's travelers increasingly demand personalized experiences. To provide this level of personalization, we need more detailed guest information. We strongly advocate for generational segmentation, categorizing guests into groups like Baby Boomers, Millennials, Gen Z, etc.
The challenge lies in gathering this information from our various distribution partners. Some of our best results come from pre-stay communications, such as pre-check-in messages, where we can greet guests and ask a few short questions to uncover the reason for their stay. This lets us surprise and delight them with a tailored experience, enhancing their overall satisfaction.
Brand positioning
How important do you think storytelling and brand identity are in today's competitive hospitality market, and how can this be incorporated into sales and marketing strategies?
Storytelling and brand identity are vital in today's competitive hospitality market. Every hotel has a unique narrative, its history, design, location, or guest experiences. This story differentiates a hotel and connects emotionally with potential guests. Social media is ideal for storytelling, provided the narrative resonates with your audience and brand essence.
Identify what sets your hotel apart, luxury, sustainability, local culture, or exceptional experiences and showcase this clearly. Instagram is great for aesthetics, while Facebook suits longer stories and testimonials.
Effective storytelling combines engaging content like reels, behind-the-scenes footage, or live videos. Sharing operations like kitchen processes, room preparations, or staff routines adds authenticity. This humanizes your brand, builds trust, and highlights attention to guest experience.
Consistency matters. Your online narrative must match the actual guest experience, from initial reservations to onsite interactions. Every touchpoint should reinforce your story, creating a seamless brand experience.
Your website ties everything together. It must reflect your social media narrative, offer a user-friendly experience, and deliver visually consistent, engaging content.
Integrating compelling storytelling throughout your hotel's presence attracts guests, fosters loyalty, and ensures long-term success.
Emerging trends
Are there any sales or marketing trends you believe the industry underestimates, and how can hotels capitalize on them before they become mainstream?
A key underestimated trend is the demand for hyper-personalization in guest experiences. While personalization is often superficial, travelers now seek deeper, meaningful connections with hotel brands. Millennials and Gen Z value tailored offers, personalized travel recommendations, and custom in-room experiences.
Hotels can leverage this by investing in data-driven marketing tools and CRM systems. Insights from pre-arrival surveys, guest feedback, and loyalty programs enable highly customized experiences. Examples include personalized spa treatments, curated local activities, or tailored room preferences.
Another growing trend is AI and automation to enhance guest service and marketing. Hotels relying on manual processes can benefit significantly from AI-driven 24/7 chatbots, dynamic pricing, and personalized upselling recommendations. Early AI adoption boosts operational efficiency and guest satisfaction.
Hotels embracing these trends early and investing in supporting technology will stand out by consistently exceeding guest expectations.
About Shiji Group
Shiji is a global technology company dedicated to providing innovative solutions for the hospitality industry, ensuring seamless operations for hoteliers day and night. Built on the Shiji Platform—the only truly global hotel technology platform—Shiji's cloud-based solutions include property management system, point-of-sale, guest engagement, distribution, payments, and data intelligence for over 91,000 hotels worldwide, including the largest hotel chains. With more than 5,000 employees across the world, Shiji is a trusted partner for the world's leading hoteliers, delivering technology that works as continuously as the industry itself. That's why the best hotels run on Shiji—day and night. While its primary focus is on hospitality, Shiji also serves select customers in food service, retail, and entertainment in certain regions. For more information, visit shijigroup.com.
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