Unpacking Revenue Strategies and Innovation in Hospitality

7 min read
Unpacking Revenue Strategies and Innovation in Hospitality — Photo by Shiji

The Shiji Insights podcast continues to be an essential resource for hospitality professionals, offering insightful discussions on pivotal industry topics. In the second episode of the series, Florencia sits down with Alejandro García, the Commercial Director for Spain and Portugal at Duetto, to delve into innovative revenue strategies and the impact of technological advancements on the hospitality industry.

The conversation also explores the intricate relationship between reputation and revenue and the future of personalised guest experiences. This review will provide a detailed summary and analysis of the episode, highlighting key points and insights shared by the hosts.

The original podcast was in Spanish, and we have prepared a summary in English for our global Insights audience.


Impact of Reputation on Revenue: The Global Review Index (GRI) is a critical metric that significantly influences occupancy rates, average prices, and RevPAR. A one-point increase in GRI can lead to notable revenue gains.

Importance of Benchmarking: Benchmarking against competitors in both revenue and reputation metrics is essential. Hoteliers must understand their position relative to competitors to make informed pricing decisions.

Segment-Specific Pricing Strategies: Different market segments, such as leisure and business travellers, have distinct priorities and sensitivities to reviews. Tailoring pricing strategies to these segments can optimise occupancy and revenue.

Effective Management of Negative Reviews: Handling negative reviews with personalised, constructive responses can turn potential setbacks into opportunities for improvement and enhance the hotel’s reputation.

Advancements in Attribute-Based Selling: The adoption of ABS is facilitated by technological advancements in booking engines and digital twins. A client-centric PMS and integrated systems are crucial for implementing ABS and delivering personalised guest experiences.

Summary and Review

The episode begins with Florencia welcoming Alejandro and setting the stage for a deep dive into revenue management strategies. The conversation starts with a retrospective glance at the findings from a decade-old study conducted with Cornell University and STR, which established a direct correlation between a hotel’s reputation and revenue.

Specifically, an increase in the Global Review Index (GRI) by one point can significantly boost occupancy rates, average price, and RevPAR (Revenue Per Available Room). This foundational study underscores the long-standing impact of reputation on revenue, setting the context for the current discussion.


Reviews And Ratings Are Crucial

Alejandro emphasises the multifaceted nature of setting hotel prices, noting that reviews and ratings from Hotel Reputation Management platforms are crucial. He explains that while a higher GRI can justify raising room rates, a lower GRI compared to competitors can deter potential guests.

This nuanced view of pricing strategies illustrates the importance of benchmarking against competitors in revenue and reputation metrics. The integration between Reputation Management and Revenue Management systems exemplifies the need for comprehensive data to inform pricing decisions, allowing hoteliers to manage rates effectively and competitively.

Florencia and Alejandro delve into consumer behaviour, noting that reviews influence potential guests differently depending on the purpose of their travel—leisure or business. Negative reviews can be a deal-breaker for leisure travellers, while business travellers may prioritise functional aspects such as bed comfort, shower pressure, Wi-Fi quality, and location. This distinction highlights the need for hoteliers to tailor their offerings and pricing strategies to different market segments.

The discussion then shifts to the handling of negative reviews. Florencia underscores the inevitability of receiving negative feedback and the importance of managing it effectively. She advocates for personalised, non-robotic responses to reviews, viewing each complaint as an opportunity for improvement. This proactive approach to reputation management can enhance a hotel’s appeal and reliability in the eyes of potential guests.

Attribute Based Selling

A significant portion of the episode is dedicated to attribute based selling (ABS), a concept that modern Revenue Management Systems have pioneered. ABS involves pricing hotel offerings based on individual attributes rather than a one-size-fits-all approach.

Alejandro explains that while the concept has been around for years, technological limitations have hindered its widespread adoption. The recent advancements in digital twins and booking engines are now facilitating ABS, enabling hoteliers to personalise and optimise their offerings based on guest preferences and behaviours.

Alejandro highlights the historical context of his company’s Revenue Management Systems’ focus on ABS, originating from its roots in the casino industry, where customer loyalty and spending patterns are meticulously tracked. This background has equipped them with the expertise to implement ABS in the broader hospitality sector.

System Integrations

However, Alejandro points out that the challenge of integrating various systems such as PMS (Property Management Systems), CRS (Central Reservation Systems), and CRM (Customer Relationship Management) to enable seamless ABS is very real.

Florencia and Alejandro discuss the importance of having a client-centric PMS, such as an Enterprise Platform, which facilitates comprehensive guest data management and integration with other systems.

This client-centric approach is crucial for realising ABS’s full potential and enhancing guest experiences through personalised offerings.

Towards the end of the episode, Alejandro mentioned a recent acquisition by his company, which aims to extend dynamic pricing beyond rooms to other hotel services like meeting rooms, F&B, and even poolside sunbeds. This expansion into total revenue management reflects the commitment to innovation and holistic revenue strategies.


The second episode of the Shiji Insights podcast explores how reputation and innovative revenue strategies intersect to influence hotel revenue. Alejandro’s insights into the practical applications and future potential of attribute-based selling offer valuable guidance for hoteliers looking to stay competitive in a dynamic market.

The episode underscores the importance of effective reputation management and personalised guest experiences, which are becoming increasingly vital in the digital age. Overall, it provides a comprehensive look at the strategies and technologies shaping the future of revenue management in the hospitality industry. It offers valuable lessons for hoteliers aiming to leverage reputation and personalised offerings to drive revenue growth.

About Shiji Group

Shiji is a multi-national technology company that provides software solutions and services for enterprise companies in the hospitality, food service, retail and entertainment industries, ranging from hospitality technology platform, hotel property management solutions, food and beverage and retail systems, payment gateways, data management, online distribution and more. Founded in 1998 as a network solutions provider for hotels, Shiji Group today comprises over 5,000 employees in 80+ subsidiaries and brands in over 31 countries, serving more than 91,000 hotels, 200,000 restaurants and 600,000 retail outlets. For more information, visit www.shijigroup.com.

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