#USA #New York #Skift #Mews #hotel strategies

New Insights on Hotel Revenue Growth

In the rapidly evolving hospitality landscape, a new report titled Why Hotels and Their Investors Are Leaving Millions on the Table, released jointly by Skift and Mews, presents a revolutionary perspective on how hotels can optimize their revenue and ensure sustainable growth. The findings challenge long-held beliefs in the industry that emphasize traditional metrics like occupancy rates and revenue per available room (RevPAR) as the primary indicators of success.

For decades, hotels have relied on these metrics to define their performance, focusing predominantly on room sales. However, as the report illustrates, this outdated model doesn't reflect the current expectations of guests who seek not only accommodation but personalized experiences, flexible offerings, and meaningful interactions during their stays.

The Shift from Rooms to Relationships

Matt Welle, CEO of Mews, encapsulated this perspective by stating, "Hospitality isn't just about rooms anymore – it's about relationships." This illustrates a pivotal shift towards maximizing guest value over merely filling beds. The report emphasizes the potential of new metrics like Revenue per Available Guest (RevPAG), which looks at the total financial contribution of each guest encounter. Notably, lifestyle brands such as Ennismore are leading the way, earning more than 60% of their revenues from non-room-based services like dining, coworking spaces, and event hosting.

Such an approach not only enhances profitability but also increases the resilience of businesses during fluctuating market conditions.

Creating Community Value

Forward-thinking hotel operators are also redefining the role of their properties, transforming them from mere stops for travelers into vibrant community hubs. For instance, Staypineapple Boston has effectively engaged local clientele by turning its lobby into a bustling public bar, while Paradise Resort Gold Coast has successfully bundled its offerings with unique experiences like water-park access and spa treatments based on a single, comprehensive guest profile.

This trend aligns with Mews' findings that nearly one-third of hotels are now providing additional services such as parking, coworking areas, and memberships, contributing to a nearly doubled uptake of their non-room booking functionalities between 2024 and 2025. With reservations for these additional services skyrocketing by over 230%, it’s clear that the industry's focus on experience-driven revenue is accelerating.

Measuring What Matters

To unlock the full potential of hospitality, the report advocates for a reevaluation of traditional KPIs. By emphasizing a holistic view of the guest journey and integrating operational, marketing, and financial systems, hotels can enhance their understanding of guest value. This evolution allows for a more personalized and gratifying experience tailored to the nuanced needs of guests.

The Role of Technology

Central to this transformation is the deployment of technology that enables hotels to predict guest needs accurately and facilitate personalized experiences. Mews highlights successful implementations, such as Swiss Hotel Apartments, which illustrated how connecting guest data across multiple departments can enhance service delivery across 48 properties. Another example, Strawberry, utilizes AI to streamline processes such as check-in, housekeeping, and communication while maintaining a personalized touch with guests.

Richard Valtr, the founder of Mews, captures the essence of this technological integration with the phrase, "Technology doesn't replace hospitality, it reveals it." By automating complex tasks, hotel staff are liberated to focus on delivering memorable experiences that resonate with guests.

A New Era for Hospitality Investment

In conclusion, the insights from the Skift x Mews study indicate that hotels limiting their focus to room sales are forfeiting substantial revenue opportunities. By adopting guest-centric and community-oriented strategies, hotels not only enhance the guest experience but significantly bolster their long-term asset value. Such an approach holds the key to thriving in a modern hospitality environment, ensuring that hotels evolve from providers of beds to purveyors of enriching experiences.

For deeper insights, the full report is accessible through Skift and Mews websites.