Main challenges for revenue management in 2025

By Lori Kiel, Senior Vice President of Revenue Management at Benchmark | Pyramid Luxury & Lifestyle

With ongoing pressures from rising costs, shrinking profits, and the aftershocks of the pandemic, the way we approach pricing, technology, and data will be critical for success this year. Here's my breakdown of what to expect in 2025 and strategies to navigate these challenges effectively.

Stabilizing revenue performance

The recovery from the pandemic has stabilized top-line revenue performance for many hotels, but this upward trend is expected to flatten in 2025. Rising costs and shrinking profits are also placing significant pressure on revenue management strategies.

As the market becomes more competitive, we'll need to adopt commercial strategies to maintain profitability. The focus will shift from siloed strategies to alignment between marketing, sales, and revenue management to reduce the expenses and drive the revenues with the focus on profitability.
One of our main priorities this year will be driving direct bookings at retail pricing by targeting the right customers with the right offer to boost conversion rates.

The critical role of data

The most important data to leverage will be a "single source of truth." This means that all departments within a hotel - from marketing to operations - must align around the same KPIs. With a shared understanding of key metrics, you can execute more aligned strategies, ensuring consistency across commercial efforts.
Revenue managers will need to focus on a select few KPIs that can drive meaningful change. While the number of KPIs to track may vary by property, narrowing it down to around three key metrics will help maintain clarity and agility.

Technology integration challenges for independent properties

One of the biggest challenges independent properties face is the lack of integrated technology. Many have disparate systems to manage data, inventory, and pricing. This situation leads to inefficiencies, adds complexity to revenue management strategies, and consumes valuable time.

Even with investments in new technology, achieving seamless compatibility remains a hurdle, making it difficult to streamline operations and limiting decision making.

Staying ahead

Revenue management this year will be shaped by a combination of direct channel growth strategies, technology investment, and data centralization. Tackling these core areas head on will allow you to thrive in an increasingly competitive market.

2025 hospitality trends report

These insights are drawn from Duetto's 2025 hospitality trends report (bit.ly/duetto-trends), which analyzes factors set to impact the industry this year. The report features perspectives from global revenue management professionals and leading industry voices, including executives from Hotel Tech Report, Sandos Hotels & Resorts, CP Hospitality, Noble House Hotels & Resorts, the Sandman Hotels et Sutton Place Hotel Group, and Grand Metropolitan Hotels.

From embracing AI to redefining revenue metrics, it provides a roadmap for turning today's challenges into tomorrow's successes. With real-world applications and forward-thinking strategies, including insights from leading hotels, casinos, and resorts, this report delivers actionable tools to help revenue professionals stay ahead of the competition and thrive in 2025.

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About Duetto

At Duetto, we create cloud-based software to unlock revenue and profit potential for hoteliers, leveraging our years of hospitality and technology experience.

Built with an Open Pricing methodology, we bring all your data together so you can capture dynamic demand, make optimal inventory decisions, and increase efficiency in real-time.

Globally trusted, more than 6,300 properties in 60+ countries are using our products. These include GameChanger for yielding and distribution, ScoreBoard for reporting and forecasting, BlockBuster for group business, Advance for real-time, 24/7 revenue management, and OpenSpace for function space optimization.

Named the world's #1 revenue management system in 2025, 2024, 2023, and 2022 in the HotelTechAwards, we're dedicated to becoming the revenue and profit operating system for the hotel industry.

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For more information, please visit duettocloud.com.

This release was published on openPR.