Sheila Rusco
Building Revenue Strategies Around Guest Value
I have been in the hospitality business for about 30 years and have worked in just about every department. When I was first recruited into revenue management over 20 years ago, I didn’t fully understand the impact it would have. What I’ve learned is that pricing is the easiest part. The challenge is understanding who your guest is and what they are really buying. In flexible hospitality, that guest may stay two nights or two months. Building strategy around length of stay, education and value is crucial especially when you are up against traditional hotels.
Aligning Pricing with Demand and Guest Value
Pricing is based on your competition, demand in the market and what your guest needs and wants. Forecasting is figuring out how much of that demand you can capture and at what price. But the most important piece is understanding your guest. Guests today compare a hotel, an apartment in the city and an Airbnb all in one search. I monitor pace, but I really focus on what the guest gets for their money, more space, a full kitchen, being close to cool restaurants and venues. I trust the data, but I keep in close contact with the team at the property. The front desk often knows more because they are the ones talking to guests every day.
Aligning Revenue, Sales and Operations through Shared Goals
Honestly, it comes down to revenue, sales and operations being in the same room and speaking the same language. Revenue cannot just send out rate changes and new strategies without buy-in from the team. At Wyndham, I worked with franchise owners, GMs and sales leaders across the country and I implemented a program called the Wellness Check for hotels that were struggling. Participating hotels averaged a 7% improvement in RevPAR. The hotels that did best were the ones where everyone owned the plan together. Shared goals matter more than department goals. Short, regular strategy meetings help, but explaining the “why” helps most. When operations understand why there’s a minimum night stay on a high-demand weekend, when sales understand why a group was quoted a certain rate and when revenue understands that sometimes it’s worth taking a risk on a rate in order for sales to win the business.
An algorithm can recommend a price, but it cannot read the guest standing at the front desk, build the trust that comes from a strong sales relationship or make the judgment call when something unexpected happens at the property.
Turning Market Data into Profitable Revenue Decisions
There is no shortage of data in our industry. Every week I review Star reports, pace, channel mix and competitors, but data only matters if it helps you make a decision. The question I always ask is, “what are we going to do with this information?” At Mint House, I oversaw more than $30M in room revenue across Nashville, Denver and Dallas. It was the same brand but different product in three quite different markets and each market had its own strategy. Staying close to each market is how we averaged a 104% RevPAR index against traditional, branded hotels. When it comes to profitability, I always look at what it costs to get the booking. An OTA booking and a direct booking at the same rate do not make the same money. Longer stays also cut down on turnover and housekeeping costs. If it costs too much to win the revenue, it is not really growth. The exception is when giving up a little revenue helps you build a relationship with a new client or company.
Balancing AI Efficiency with Human Connection
AI is an incredible tool and I think we should embrace it. It can spot patterns faster, improve forecasting and take a lot of repetitive work off our plates, which gives teams more time to think strategically. That said, hospitality will always be a people business. An algorithm can recommend a price, but it cannot read the guest standing at the front desk, build the trust that comes from a strong sales relationship or make the judgment call when something unexpected happens at the property. The risk is not that technology becomes too sophisticated, it’s that we become so focused on efficiency that we forget about human connection. The companies that win will be the ones that pair smart tools with empowered, compassionate people. Growth lasts when the numbers make sense, the team is on the same page and the guest still feels the human side of hospitality.
