In the world of revenue management, hospitality professionals often look inward benchmarking against other hotels, watching OTAs, and tweaking room rates. But sometimes the biggest breakthroughs come from looking outside our own industry. Two sectors that have long mastered the art of dynamic pricing and customer-centric upselling? Airlines and retail. Here’s what hospitality can learn from their playbooks.
1. Airline-Style Dynamic Pricing: Beyond BAR
Airlines have perfected the art of charging different prices to different customers at different times—and they’ve been doing it for decades. From advance-purchase fares to seat class upgrades, airlines price based on demand, segmentation, and timing, not just inventory.
Takeaway for hotels:
Hotels still rely heavily on Best Available Rate (BAR) structures, but it’s time to think more dynamically. Incorporating demand forecasting, stay-date elasticity, and channel-specific behavior into your pricing models can boost RevPAR and profit. And don’t just think about room type—there’s opportunity to apply dynamic pricing to early check-ins, parking, or breakfast too.
2. Ancillary Revenue: A Lesson in the Power of Add-Ons
Airlines don’t just sell tickets—they sell seat selection, baggage, in-flight meals, priority boarding, lounge access… you name it. Ancillary revenue often accounts for a significant chunk of their profits.
Takeaway for hotels:
Room revenue is just the beginning. What services or experiences can you unbundle or enhance? Consider monetizing early check-ins, late check-outs, room upgrades, spa access, or curated local experiences. Use technology to offer these at the right moment in the guest journey—pre-arrival emails, check-in kiosks, or even in-stay notifications.
3. Retail Personalization: Know Your Guest Like They’re a Shopper
Retail giants like Amazon and Sephora thrive on personalization. They harness data to recommend, upsell, and build loyalty. Every click, scroll, and purchase informs the next offer.
Takeaway for hotels:
Your PMS and CRM are treasure troves of data. Use them to personalize offers based on past behavior, preferences, and booking patterns. A returning guest who booked a spa treatment last time? Send them a targeted discount pre-arrival. A couple celebrating an anniversary? Offer a romance package or room upgrade. Segmented, personalized communication drives conversion—and builds brand loyalty.
4. Retail’s Agile Promotions: Nimbleness Matters
Retailers move fast. Flash sales, inventory clearances, seasonal promotions—they’re constantly adjusting prices and promotions to move product and meet targets.
Takeaway for hotels:
You don’t need to wait for Black Friday to run a campaign. Use low-demand periods, unexpected events, or school holidays to test agile promotions. Limited-time offers, value-added packages, and urgency-driven campaigns can drive last-minute bookings and create momentum.
5. The Art of Frictionless Buying
Both airlines and top retailers invest heavily in reducing purchase friction. Think one-click checkout, Apple Pay, seat maps, or virtual try-ons. The easier it is to buy, the more people buy.
Takeaway for hotels:
Review your booking journey—on your website, on mobile, and across OTAs. How many clicks does it take to book a room? Is your upsell process intuitive or disruptive? Are your payment options modern and secure? A seamless booking experience can make or break a sale, especially for impulse travelers.
Final Thoughts:
It’s no longer enough to benchmark against your comp set. The most forward-thinking hotel revenue managers are looking beyond the hotel industry for inspiration. Airlines teach us how to price and bundle. Retail teaches us how to personalize and convert. Together, they provide a roadmap for smarter, more profitable hospitality.
At Revenue Resolutions, we help hoteliers turn these cross-industry lessons into real-world results—bridging the gap between theory and implementation. If you’re ready to move beyond rate parity and build a more sophisticated, revenue-focused strategy, let’s chat.