That’s exactly when it becomes clear whether hotels are truly in control. Revenue management systems are good—on average. But they don’t make the difference. Those who rely solely on them will remain in the middle of the pack. Those who have the courage to deliberately take the wheel can come out on top—even against stronger competitors.
We’ll outline three specific triggers where you, as a revenue manager or general manager of your hotel, should take deliberate action. Not against the systems, but in collaboration with them. Because true control means knowing when to deviate—and why.
- Hotels often rely blindly on revenue management systems—but these systems have their limitations.
- Three clear indicators of when human intervention is necessary.
- Here’s how to combine data intelligence with experience to gain a competitive edge.
Why systems alone aren't enough
Revenue management systems are data-driven. They monitor markets, compare prices with competitors, and provide pricing recommendations. All of this saves time. However, systems can only analyze what data is already available.
- They look to the competition for guidance—and those who merely copy others will never rise above average.
- They analyze historical patterns—and often recognize unusual situations too late.
- Nothing can replace experience: that gut feeling for anomalies, that keen sense of demand, and that knowledge of local customs.
This is exactly where the opportunity lies for revenue managers. Systems are tools. But the days that really matter are the ones when you take control.
Trigger 1: Unexpected spikes in demand
Sometimes demand can change overnight. A sudden change in the weather, an unexpected concert, a flight cancellation—and suddenly everything is different.
Real-world examples:
- A sudden change in the weather along the coast: The forecast for Usedom calls for rain all week. On Thursday, the forecast takes a turn—suddenly, nothing but sunshine. Within hours, hundreds of Berliners book a last-minute weekend getaway. Forecasting systems often react too late here—since most only update their forecasts one to three times a day. By the time they do, the decisive surge in demand may already have passed.
- Flight cancellations in Frankfurt: Snow or thunderstorms have brought the airport to a standstill. Ten flights are grounded—3,000 passengers are urgently looking for a place to stay. Those who manually check prices here will come out ahead.
- Unexpected events: Adele spontaneously announces an extra concert in Munich. Within minutes, the tickets are sold out—and so are the hotel rooms.
How to recognize unexpected impulses:
- An unusually high number of bookings for a single day or a specific segment.
- Demand that isn't apparent in a market comparison but is growing within your company.
- Information from the media or the surrounding area (sports events, new flight routes, infrastructure disruptions).
Our recommendation:
- Keep an eye on your own numbers. Don’t wait for the market to react.
- Adjust prices and restrictions immediately. Whoever identifies demand first sets the market price.
- Leverage local knowledge. As a revenue manager or general manager of a hotel, no one knows the unique characteristics of your location as well as you do. This knowledge trumps any automation.
As a revenue manager, you know the unique characteristics of your location—and can respond faster than any system.
Trigger 2: Segment Shifts
Not every booking is equally profitable. Corporate contracts, conference guests, or regulars can be valuable—or they can hold back revenue.
Common risk: LRA contracts
LRA (Last Room Availability) means that customers can book at a fixed price until the very last room is available. It sounds fair—but it’s often a burden.
Real-world examples:
- DAX-listed company: Contractually agreed LRA rates were stifling profitable demand. After terminating the contract, the company had to switch to higher public rates. Result: 30% increase in revenue.
- Conference clients in Stuttgart: A major automotive group booked events for years at low rates and also demanded free services. In the end, there was no profit left.
- Long-term contracts: Conference or event clients with 5-year contracts whose rates do not keep pace with inflation or rising costs.
Our recommendation:
- Conduct a displacement analysis: Is the customer replacing high-priced demand, or is he adding real value?
- Review contracts: Use annual renewals as an opportunity to adjust terms or decline customers.
- The Courage to Cut Ties: Sometimes, growth means letting go of unprofitable customers.
Trigger 3: Channel Stress & OTA Dependency
Online travel agencies (OTAs) such as Booking.com or Expedia are important—but dangerous if a dependency develops.
Common problems:
- High commissions: 15–20% of revenue is lost to OTAs—which is particularly painful on peak days when those rooms would have been booked directly.
- Inventory lock-ins: Event organizers secure fixed quotas that they resell at a discount—even on days of high demand.
- Imbalance: A single channel dominates sales and undermines direct sales.
Real-world examples:
- Trade fair in Frankfurt: OTA quotas are blocking rooms at low rates, even though the city is fully booked. Hotels must either buy back rooms at a high price or forgo revenue.
- Event in Munich: Booking.com to Close for a Weekend – Direct Bookings Rise, Commissions Fall.
Our recommendation:
- Manage channels strategically: Temporarily close or limit OTAs on peak days.
- Boost direct bookings: Better rates and communication through your own website.
- Limit quotas: No rigid inventory lock-ins, especially in dynamic markets.
The decisive days aren't the average ones, but the outliers. That's exactly when those who turn off autopilot and take the wheel themselves come out on top.
From autopilot back to the wheel
Revenue management systems are valuable partners. They provide structure, data, and speed. But they are no substitute for experience, intuition, and courage. Courage in revenue management means taking responsibility—especially when systems don’t provide clear-cut answers. Intuition is not the opposite of data, but rather the essence of experience: a sense for outliers, knowledge of local peculiarities, and an understanding of interconnections. Those who recognize these signals and act consciously combine structure with instinct—and turn automation into true control.
Keep these three triggers for manual revenue management in mind:
- Unexpected spikes in demand
- Segment shifts
- Channel Stress & OTA Dependency
Those who recognize these moments and consciously capitalize on them not only secure revenue—but also a genuine competitive advantage.
When was the last time you intentionally pushed your system to its limits? Let’s talk about it—and work together to identify where your home is missing out on potential.
