Introduction
Independent hotels often lose revenue not because of lack of demand, but because of preventable pricing and distribution mistakes. Recognizing these errors is the first step to increasing RevPAR and stabilizing occupancy.
Here are the most common mistakes—and how to avoid them.
1. Setting Rates Based on Gut Feeling
Pricing shouldn’t be emotional. Many hotels still set rates by:
- Copying competitors
- Using last year’s rates
- Guessing based on “experience”
Without data, you miss opportunities and underprice your strongest days.
2. Not Managing Rates Daily
Demand changes every hour. Updating rates once a week is too slow.
Daily revenue management helps you:
- Capture peak demand
- Sell distressed inventory
- Maximize compression nights
A 10-minute daily check can improve yearly performance significantly.
3. Ignoring Segmentation
Not all guests behave the same. Treating every guest equally leads to bad forecasting.
Segment by:
- Corporate
- OTA
- Direct
- Groups
- Travel agents
Each one has different booking windows and different price sensitivities.
4. Staying Overly Dependent on OTAs
OTAs bring visibility—but relying on them too heavily lowers margins and stability.
Balance your channels with:
- Direct promotions
- B2B partnerships
- Google Hotel Ads
- Website conversion optimization
Diversification protects profits.
5. No Forecasting or Budgeting
Without forecasting, you can’t:
- Predict high demand
- Plan staffing
- Adjust rates smartly
- Allocate marketing spend
Even a simple monthly forecast makes a huge difference.
Conclusion
Revenue management doesn’t have to be complicated. Avoid these common mistakes, focus on data-driven pricing, and your hotel will see immediate improvements in both occupancy and ADR.