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On Sole24Ore

Beyond the myth of the right price - Revenue Management as a strategic lever

In recent days, Il Sole 24 Ore has dedicated an article for the third time to my vision of Revenue Management.
A recognition that makes me proud, but above all gives me the opportunity to reiterate a concept that I care about a lot:
"Revenue Management is not (just) pricing".

Reducing this discipline to rate management is one of the most common mistakes in the hotel sector.
And also one of the most dangerous.

The myth of the “right price”
For years, the Revenue Manager has been identified as “the man of rates”.
The one who raises or lowers prices based on demand.
But the price is only the final consequence of a strategy. It is not the strategy.
True Revenue Management starts from:

demand analysis
customer segmentation
study of distribution channels
integration with marketing and booking
cost and margin control

Without these elements, pricing becomes a reaction.
And reactions in tourism are costly.

Occupancy does not mean profit
One of the most common misconceptions is to think that more rooms sold equate to greater success.
But a full hotel can also be a less profitable hotel.
The point is not to fill.
The point is to maximize the value of each room sold.
This means working on:

channel mix
OTA impact
direct site performance
booking department capacity
net margin (not just revenue)

Modern Revenue Management interacts with management control.
Because growing without margin is not growth. It is just volume.