Definition
Revenue strategy is the overall approach that defines how a hotel wants to position itself in the market and which revenue goals it aims to achieve.
It sets priorities across pricing, segmentation, distribution channels and demand mix.
Why it matters
A clear revenue strategy helps hotels to:
- Align the entire team around a shared direction.
- Avoid conflicting decisions across departments.
- Prioritise actions based on clear objectives (profitability, occupancy, positioning…).
- Provide a foundation for criteria and automation.
Without a strategy, decisions may be individually correct but inconsistent overall.
Relation to revenue criteria
👉 Strategy sets the direction.
👉 Criteria translates that direction into daily decisions.
Without strategy, there is no foundation for decision-making.
Without criteria, strategy is not executed.
Practical example
A hotel decides to position itself as a high-quality option in its market, avoiding price-based competition.
Its strategy includes:
- Targeting higher-value segments.
- Prioritising direct bookings over intermediated channels.
- Maintaining a consistent value-for-money perception.
From there, the team defines specific criteria to execute this strategy day to day.
