Opening a Hotel: A Revenue Management Perspective
From a Revenue Management perspective, opening a hotel is a structuring and highly strategic process that begins long before the start of operations and extends through the first months of activity. This is a critical moment where informed decisions and rigorous execution can determine the speed of market penetration, competitive positioning, and future profitability of the asset.
In-Depth Market Analysis
This process requires, at an early stage, an in-depth analysis of the surrounding market. Understanding the dynamics of demand, the main segments, seasonality, and competitor behavior allows for establishing a solid foundation for defining the pricing and distribution strategy.
Strategy Development
Based on this analysis, the Revenue Management department assumes a central role in defining the initial strategy. This includes deciding on hotel types, distribution channels, and pricing structure. Building a pricing structure consistent with the product positioning, coupled with defining commercial conditions, ensures that the hotel enters the market competitively and sustainably. The opening price, in particular, must balance the need to generate initial demand with the preservation of the perceived value of the product.
In parallel, the distribution strategy is carefully defined to ensure visibility and profitability. This is achieved through efficient management of sales channels, inventory, and parity from the start of operations.
Support Tools
Another critical aspect in the pre-opening phase is the implementation and configuration of technological tools to support Revenue Management, such as PMS, Channel Manager, and Revenue Management Systems (RMS). These tools allow for the operationalization of the defined strategy and ensure efficient, real-time management of availability and pricing. In the case of AHM, as we work with international brands such as Marriott, Hilton, and IHG, this part is ensured by them. There is always a team on the brand side that monitors each discipline during the opening phase to ensure that all systems and channels are correctly parameterized.
As the opening approaches, the active marketing phase begins, with pre-sale and early booking campaigns to stimulate early demand and ensure a more consistent opening. Continuous monitoring of reservations and the market allows for real-time adjustments to the strategy.
Opening and Initial Operation
During the opening and initial operation phase, Revenue Management focuses on dynamic demand management and optimizing the business mix. At this stage, it may be necessary to find a balance between maximizing the average daily rate (ADR) and building reputation and visibility in the market, essential factors for consolidating the hotel’s positioning.
Finally, in the post-opening period, performance analysis becomes crucial. Comparing actual results with initial projections, reviewing segments and channels, and continuously fine-tuning the strategy allow for the evolution from a market entry logic to a sustained growth approach.
What’s coming next…
Our next opening is The 6th Bridge, Tapestry Collection by Hilton, which will feature 24 suites distributed across four types: Studio, One Bedroom Suite, Deluxe One Bedroom Suite, and Premium One Bedroom Suite.
We are already in the final stages of preparation for the highly anticipated Go Live: the official sales opening. At this stage, the focus is on defining the initial pricing strategy, configuring distribution channels, aligning with brand standards, and implementing a sustainable ramp-up strategy that allows building positioning and reputation from day one.
At the beginning of next year, we will also have another strategic opening: the DoubleTree by Hilton Lisbon Airport. Currently, we are in a crucial phase of the process: analyzing the hotel floor plans to understand the room layout and define the most suitable room types. This is a detailed and sometimes time-consuming task, but absolutely crucial. The correct definition of room types directly impacts pricing, competitive positioning, market segmentation, and consequently, future revenue potential.
In short, Revenue Management in the opening of a hotel is not just an operational function, but a strategic lever that ensures all business decisions are aligned with the asset’s objectives. Our intervention from the initial stages allows us to maximize revenue potential, reduce risks, and accelerate the path to profitability.
