How Guest-Centric Strategies Can Enhance Hotel Revenue and Growth
In the ever-evolving landscape of the hospitality industry, conventional wisdom often dictates that a hotel's success is measured by its occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR). However, a newly released report by Skift and Mews titled "Why Hotels and Their Investors Are Leaving Millions on the Table" challenges this longstanding perspective. The report underscores a significant shift in focus from simply filling beds to cultivating meaningful relationships with guests, thereby unlocking new revenue streams and fostering long-term growth.
According to the report, the traditional metrics no longer encapsulate the contemporary expectations of guests, who are increasingly seeking not just accommodation but immersive experiences, flexibility, and genuine interactions. "The hospitality industry is no longer about just rooms; it’s about relationships," emphasizes Matt Welle, CEO of Mews. Hotels that prioritize maximizing Guest Lifetime Value (GLV) rather than mere room sales are positioned to tap into a wealth of opportunities for loyalty and revenue growth.
With the evolving emphasis on guest-centric performance metrics, the report highlights the growing importance of alternate measures such as revenue per available guest (RevPAG). This metric takes into account the total value of every guest interaction, whether they are staying the night, dining, working, or socializing. Notably, lifestyle brands like Ennismore have successfully shifted their revenue compositions, with over 60% of their earnings derived from services beyond room bookings, including food and beverage offerings, co-working spaces, and events. This not only demonstrates that a guest-centric approach can be more lucrative but also that it fosters resilience against market fluctuations.
Beyond room occupancy, forward-thinking hotel providers are transforming their properties into vibrant community hubs that benefit both locals and travelers. An exemplary case is Staypineapple Boston, which features a popular neighborhood bar, the Trophy Room, turning the hotel lobby into a lively public gathering place. Another instance is the Paradise Resort Gold Coast, which boosted revenues and guest satisfaction by integrating experiences like water park admissions and spa bookings into cohesive guest profiles.
With nearly a third of hotels using Mews’ platform now offering additional bookable services such as parking and co-working spaces, the industry has witnessed a nearly 100% increase in properties utilizing Mews Spaces for non-room bookings from 2024 to 2025. During the same period, reservations surged over 230%, reinforcing the industry's pivot towards experience-driven revenue diversification.
However, traditional key performance indicators (KPIs) capture only a fraction of a hotel's potential. By focusing on the holistic guest experience and bridging operational, marketing, and financial systems, hotels can glean deeper insights into their Guest Lifetime Value. This enables them to personalize experiences while identifying new revenue opportunities effectively.
Technology plays a pivotal role in this transformation. Integrated solutions empower hotels to understand guest needs, tailor experiences, and seamlessly manage diverse revenue streams. The report spotlights success stories like Swiss Hotel Apartments, which links guest data across 48 properties to provide personalized service, and Strawberry, which employs flexible systems and AI tools to streamline check-ins, housekeeping, and guest communication. Richard Valtr, founder of Mews, aptly states, "Technology does not replace hospitality; it reveals it." By allowing digital systems to manage complexity, hotel staff can dedicate more time to the aspects of service that guests truly value—attention and care.
The Skift x Mews study concludes that hotels focusing predominantly on room rentals are missing out on millions by not fully leveraging their revenue potential. Guest-centric and community-focused strategies not only enhance the overall guest experience but also strengthen long-term asset values. To explore these insights further, download the full report and discover how hotels can capitalize on these opportunities.
According to the report, the traditional metrics no longer encapsulate the contemporary expectations of guests, who are increasingly seeking not just accommodation but immersive experiences, flexibility, and genuine interactions. "The hospitality industry is no longer about just rooms; it’s about relationships," emphasizes Matt Welle, CEO of Mews. Hotels that prioritize maximizing Guest Lifetime Value (GLV) rather than mere room sales are positioned to tap into a wealth of opportunities for loyalty and revenue growth.
With the evolving emphasis on guest-centric performance metrics, the report highlights the growing importance of alternate measures such as revenue per available guest (RevPAG). This metric takes into account the total value of every guest interaction, whether they are staying the night, dining, working, or socializing. Notably, lifestyle brands like Ennismore have successfully shifted their revenue compositions, with over 60% of their earnings derived from services beyond room bookings, including food and beverage offerings, co-working spaces, and events. This not only demonstrates that a guest-centric approach can be more lucrative but also that it fosters resilience against market fluctuations.
Beyond room occupancy, forward-thinking hotel providers are transforming their properties into vibrant community hubs that benefit both locals and travelers. An exemplary case is Staypineapple Boston, which features a popular neighborhood bar, the Trophy Room, turning the hotel lobby into a lively public gathering place. Another instance is the Paradise Resort Gold Coast, which boosted revenues and guest satisfaction by integrating experiences like water park admissions and spa bookings into cohesive guest profiles.
With nearly a third of hotels using Mews’ platform now offering additional bookable services such as parking and co-working spaces, the industry has witnessed a nearly 100% increase in properties utilizing Mews Spaces for non-room bookings from 2024 to 2025. During the same period, reservations surged over 230%, reinforcing the industry's pivot towards experience-driven revenue diversification.
However, traditional key performance indicators (KPIs) capture only a fraction of a hotel's potential. By focusing on the holistic guest experience and bridging operational, marketing, and financial systems, hotels can glean deeper insights into their Guest Lifetime Value. This enables them to personalize experiences while identifying new revenue opportunities effectively.
Technology plays a pivotal role in this transformation. Integrated solutions empower hotels to understand guest needs, tailor experiences, and seamlessly manage diverse revenue streams. The report spotlights success stories like Swiss Hotel Apartments, which links guest data across 48 properties to provide personalized service, and Strawberry, which employs flexible systems and AI tools to streamline check-ins, housekeeping, and guest communication. Richard Valtr, founder of Mews, aptly states, "Technology does not replace hospitality; it reveals it." By allowing digital systems to manage complexity, hotel staff can dedicate more time to the aspects of service that guests truly value—attention and care.
The Skift x Mews study concludes that hotels focusing predominantly on room rentals are missing out on millions by not fully leveraging their revenue potential. Guest-centric and community-focused strategies not only enhance the overall guest experience but also strengthen long-term asset values. To explore these insights further, download the full report and discover how hotels can capitalize on these opportunities.
Topics Travel）
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