A holistic approach to optimizing ALL revenue streams across a hotel, not just room revenue.
Total Revenue Management (TRM) is a strategic approach that extends traditional room-focused revenue management to encompass every revenue-generating department in a hotel. This includes rooms, food and beverage, spa and wellness, meetings and events, parking, retail, and any other ancillary services. TRM breaks down departmental silos and takes a holistic view of profitability, recognizing that a guest paying a lower room rate but spending heavily on F&B and spa may be more valuable than one paying a premium room rate but using no additional services. The goal is to maximize total revenue and profit per available guest.
Traditional revenue management focuses narrowly on room revenue, potentially leaving significant money on the table. A hotel might reject a group booking at a lower room rate without considering the €50,000 in F&B revenue that group would generate. TRM ensures these cross-departmental revenue opportunities are captured. Hotels adopting TRM typically see 3-8% increases in total revenue as they optimize pricing and availability across all departments simultaneously.
