Definition
Revenue criteria refers to the set of principles, decision logic and rules that guide how a hotel adjusts its pricing, availability and distribution strategy based on demand, context and revenue goals.
It is not a tool or a standalone metric — it’s how the hotel interprets data and decides to act.
Why it matters
Having clear revenue criteria allows hotels to:
- Make consistent decisions, even under operational pressure.
- Reduce dependency on a single decision-maker.
- Translate strategy into rules that can be scaled or automated.
- Avoid reactive or inconsistent responses to demand changes.
Without criteria, technology simply executes.
With criteria, technology enhances well-structured decisions.
Clarification: criteria vs strategy
Although often used interchangeably, they are not the same:
- Revenue strategy → Defines the what and why
(e.g. positioning as a premium hotel, maximising profitability, prioritising direct bookings). - Revenue criteria → Defines how decisions are made day to day
(e.g. when to increase rates, how to react to unexpected pickup, how to respond to competitors).
In short:
👉 Strategy sets the direction.
👉 Criteria drives each decision.
Practical example
A hotel defines that, during high-demand periods with occupancy above 80% and short lead time, the focus should shift towards maximising ADR rather than volume.
This criteria translates into actions such as:
- Gradually increasing prices.
- Restricting lower-priced room types or rate plans.
- Limiting availability on less profitable channels.
