In the hospitality industry, revenue per available room (RevPAR) has traditionally been the go-to metric for measuring a hotel's financial performance. However, as the industry evolves, it has become increasingly important for operators and asset managers to look beyond RevPAR and adopt a more holistic approach to revenue management.

TRM: What is it?

Total revenue management (TRM) is a strategy that focuses on maximizing revenue across all areas of a hotel, not just the rooms. This includes food and beverage, meetings and events, spa and wellness, and other ancillary services. By optimizing revenue across these different areas, hoteliers can increase the overall profitability of their asset.

TRM is not a new concept, but it has become more widespread in recent years as hotels have become more complex and diversified in their offerings. Data analysis and technology have also played a crucial role in the adoption of TRM, allowing operators and asset managers to collect, analyze and act on data in real-time.

TRM: Key Benefits

One of the key benefits of TRM is that it helps to reduce the impact of seasonality on a hotel's revenue. By diversifying revenue streams, hotels can better weather fluctuations in demand and optimize revenue during peak periods.

To implement TRM successfully, hotels need to have a comprehensive understanding of their customers and their needs. This means analyzing data on customer behavior and preferences to tailor offerings and pricing strategies to specific market segments.

Technology plays a crucial role in optimizing revenue across different areas of the hotel. For example, automated staff scheduling and dynamic task assignments can save time and money by streamlining operations and reducing labor costs.

TRM is an essential strategy for maximizing the revenue generation of a hotel asset. By looking beyond RevPAR and adopting a more holistic approach to revenue management, operators and asset managers can optimize revenue across all areas of the hotel, reduce the impact of seasonality, and increase the overall profitability of their asset. With the aid of technology and data analysis, hoteliers can improve their operational processes and increase the value of their hotel asset.