Linking Sustainability to Revenue Management
Sustainability is becoming an increasingly discussed topic in the hospitality industry, and one thing is clear, it is here to stay. However, for hotel businesses this does not only imply an investment in the short term, but also represents an opportunity to increase their revenues in the long term. As with the case of integrating reputation management with revenue management, the incorporation of sustainability practices and policies into the operation of a hotel business could potentially lead to revenue maximization. It is well established that better reviews and a higher trust score allow hoteliers to increase their price points, while maintaining the same occupancy percentage and market share.
Therefore, the authors of this whitepaper suggest applying this rationale to sustainability also, highlighting sustainability’s link it to revenue management. Specifically, once a hotel business’s sustainability efforts can be objectively measured and benchmarked against its competitors and the industry averages, the business can then use this information in its promotions, and charge higher prices.
A whitepaper developed for HSMAI by