Top Revenue Management Trends for Luxury Hospitality in 2025

“I believe the most important trend is Open Pricing, a flexible revenue management strategy that breaks away from traditional fixed-rate structures like Best Available Rate (BAR) or standard discount tiers.

Instead, it enables hotels to set different prices across segments and channels simultaneously, based on demand and willingness to pay. This approach can be applied not only to rooms, but also to ancillary revenues, allowing real-time rate adjustments according to demand, booking pace, and competitive positioning. While I haven’t yet implemented this strategy, I found it particularly intriguing while exploring a demo for a new RMS system project. I’d definitely be interested in hearing insights from anyone who has implemented this approach.”

“The top 2 things that come to mind for revenue management trends in the luxury hospitality segment are loyalty, and on-site amenities/inclusions.

Luxury travellers are some of the most loyal repeat guests, and properties must make sure they are acknowledging and rewarding those guests who return to stay with them. ow? By acknowledging them via tracking preferences in CRM software, and offering rewards by way of a local or third party loyalty program, if it’s an independent hotel.

Another important element is to have awareness of the internal offerings and amenities of not only your property, but of the competitors as well. It’s also essential to know which are ‘covered’ by the amenity/resort fee, and which are additional; this information should be clear on both the website and booking engine.”

“One of the most impactful trends in luxury hospitality revenue management will be, in my opinion, the shift to dynamic pricing across all ancillary services.

Traditionally, dynamic pricing has focused on room rates, but expanding it to include spa treatments, F&B and other services can optimise the entire guest spend. Why? Because it does not make sense to apply revenue management only in the space where you have a bed. Pricing spa appointments based on demand fluctuations can drive higher profitability. The same applies to implementing dynamic pricing in your F&B menu. Let’s think more RevPASM (Revenue per available square metre) and less RevPAR.”

“Luxury travellers expect custom and personalised experiences – not only during the stay, but also in the exploration and booking phases. Hoteliers should incorporate this into their online marketing strategy and target niche audiences with specific products that are catered to their target groups interest. This should also include product bundles to boost ancillary sales.”

“The quick and simple answer to this? Personalisation.

We’ve been talking about creating personal experiences and offers for years, but with today’s tech, it is actually possible and expected by the guests. Luxury hotels needs to go one step further in order to differentiate themselves from midscale hotels. They need to use their historic strength in creating perfect service to create truly unique and memorable experiences. They need to be at the forefront of digitalisation and personalisation, thereby creating the highest value and highest revenue potential.”