How RMS Innovation is Redefining Guest Experiences, Ancillary Revenue, and AI-Driven Decision-Making
As the hospitality industry looks toward 2025, revenue management strategies are undergoing a major transformation. In a dojo.live episode, Olga Tolle-Rodrigues, Director of Global Alliances at IDeaS, shared five key predictions shaping the future of hospitality and revenue management. Drawing from IDeaS’ research and industry conversations, these insights offer actionable advice on adapting to evolving guest expectations, emerging technologies, and new revenue opportunities.
Here’s a breakdown of the five predictions and how you can prepare for the future of hospitality revenue management.
1. Hoteliers Must Get Serious About Generational Shifts
One of the most significant factors influencing hospitality revenue strategies in 2025 will be the changing demographics of travelers.
“The demographics of travelers are changing, but do we understand why they’re traveling? And how do we segment those different travelers?”
Olga mentions that travel motivations vary widely across generations—23% of Baby Boomers seek adventure and unique experiences, while 70% of Gen Z travelers prioritize meeting new people.
How Can Hoteliers Adapt to Generational Shifts?
- Leverage data analytics to classify travelers based on behavior, preferences, and purchasing patterns rather than age alone.
- Audit your revenue streams to identify what’s working and uncover untapped opportunities. As Olga puts it: “Start with where you’re seeing wins—can you expand on that? Or identify gaps in your offerings that aren’t being fully utilized?”
- Use targeted marketing and upselling strategies to ensure guests discover and engage with your most valuable offerings.
2. The Rise of Experiential Travel Will Fuel New Revenue Streams
Modern travelers crave unique, personalized experiences, yet Olga highlights a major industry challenge:
“Guests want experiences, but they also need them to be easy to discover and book.”
For hotels, this means proactively promoting experiences before the guest arrives—ensuring they aren’t an afterthought.
How Can Hotels Monetize Experiences?
- Boost revenue by offering personalized recommendations before check-in.
- Partner with local providers to sell exclusive experiences—food tours, cultural events, adventure packages—directly through your platform.
- Use AI to analyze guest data and recommend activities based on past stays or similar traveler profiles, driving both satisfaction and revenue.
3. There Will Be a Renewed Focus on Ancillary Revenue
With room rates nearing their ceiling, forward-thinking hoteliers are shifting beyond RevPAR (Revenue Per Available Room) toward total revenue optimization. Ancillary services—F&B, spa treatments, event spaces—are becoming critical revenue drivers.
“Total revenue and profit optimization may feel like a lofty goal, but it’s worth pursuing—even in phases.”
How Can Hoteliers Move Beyond RevPAR?
- Shift from selling rooms to selling an entire experience. Identify and optimize all revenue touchpoints in the guest journey.
- Apply data-driven pricing across all revenue streams, from F&B to spa services and meeting spaces.
- Encourage collaboration between revenue management, marketing, and operations to create seamless, revenue-boosting guest experiences.
4. AI Will Keep Its Foothold in Hospitality
AI has dominated industry conversations for the past two years, and that’s not about to change in 2025. But Olga warns against over-reliance on automation:
“It’s really a triangle—with the system, the processes, and the people.”
For AI to truly enhance revenue management, it must work alongside human decision-making.
How Can Hoteliers Find the Right AI-Human Balance?
- Use AI to analyze guest data and tailor offers, pricing, and experiences—but rely on human intuition to ensure meaningful engagement.
- Leverage AI-powered automation for pricing updates, inventory management, and operational tasks, while maintaining strategic oversight to keep the guest experience seamless and high-touch.
- Trust AI-driven models to predict booking trends and demand patterns, but layer in market expertise to refine revenue strategies.
- Utilize GenAI to process complex data sets and transform numbers into clear, actionable recommendations, helping revenue leaders make informed decisions.
5. Cloud Adoption is Reaching a Tipping Point
The hospitality industry has been steadily moving toward cloud technology, but 2025 could mark the point where a unified, cloud-driven tech ecosystem is no longer optional.
“We can’t really continue to drive the industry forward unless we have all systems talking to each other. Otherwise, we’re not seeing the right opportunities.” – Olga Tolle-Rodrigues
How Can Hoteliers Build a Revenue-Optimizing Tech Stack?
- Invest in open API-driven solutions to integrate revenue management, CRM, and booking systems seamlessly.
- Centralize data to create a single source of truth, improving collaboration and decision-making across departments.
- Identify the right technology partners—whether building in-house, adopting third-party solutions, or setting up integrations—to create a flexible, future-proof ecosystem.
Are You Ready to Reimagine Revenue in 2025?
The hospitality industry is at an inflection point, with major opportunities for those willing to embrace innovation. From adapting to shifting guest demographics to monetizing experiences, diversifying revenue streams, and integrating AI and cloud solutions, success in 2025 will require a proactive approach.
But when asked what single change would have the biggest impact on hotel revenue management, Olga Tolle-Rodrigues didn’t hesitate:
“Break down the silos between departments. If marketing, sales, and operations collaborate and use shared data, that’s where we’ll see a big difference.”
Grab your hammer!
Let’s Keep the Conversation Going:
- Watch the full episode with Olga Tolle-Rodrigues.
- Download IDeaS’ latest whitepaper for expert insights.
- Talk to Encora about technology partnerships that drive success.
- Follow dojo.live for more conversations shaping the future of hospitality.
