Luxury Hotel Pool

Innovative Revenue Management Strategies for APAC Hoteliers

10 May 24

The APAC hotel industry is on a trajectory of strong recovery post-pandemic. The revenue of the hotel market in Asia is projected to reach USD$192.3bn by 2028 with a promising CAGR (Compound Annual Growth Rate) of 3.84%. Whether you are a hotelier from a big brand or a small boutique hotel, you share the same objective: how can you increase hotel revenue and stay competitive in the industry? Although a classic yet challenging task, revenue management holds immense growth and success potential, requiring strategies, resources, networks, and creativity. 


What are the primary sources of hotel revenues?  

Hotel revenue originates from various products and services offered to guests. Here are the five categories of revenue sources crucial for your business:

1. Room revenue: This constitutes the most significant portion of hotel revenue and includes room rentals, room upgrades, and late checkout fees.

2. Meetings, events, and banquet revenue: You can capitalize on their venue spaces by renting out meeting rooms and halls for events of all scales, catering to both business meetings and personal celebrations.

3. Food and beverage revenue: Additional revenue can be generated through featured dining and catering options, including restaurants, bars, cafes, and room service, available to both hotel guests and external visitors.

4. Ancillary revenue: This category consists of additional services and amenities beyond the standard room rate, such as spa treatments, fitness facilities, wellness programs, and other value-added services to enhance customer experience.

5. Miscellaneous revenue: Depending on your positioning, you can earn additional revenue by allocating space for gift shops or offering value-added tourism services through partnerships with local attraction providers.

Challenges and best practices of revenue management in APAC 

As hotel owners in the APAC region, you are dealing with numerous challenges in maximizing revenue potential and achieving financial performance targets, influenced by both internal dynamics and external forces.  

Challenge #1 Shifting Demand Patterns

Staying on top of evolving hospitality industry trends will be key for you to anticipate business volume and prioritize revenue strategies. It is worth noting that business travel in APAC has yet to fully rebound post-pandemic, registering only 15% in 2022 compared to 2021 levels

To adapt, you are advised to shift the revenue focus to the domestic tourism sector. For example, you can consider developing eco-friendly guest services and building sustainable brands, given that over half of APAC travelers express interest in and are willing to pay more for sustainable travel experiences 

Challenge #2 Seasonality

Weather is a crucial factor impacting the Asian tourism sector. Particularly in Southeast Asia, the monsoon season from April to September brings heavy rainfall, dissuading travelers who seek beach and outdoor experiences. 

During non-peak periods such as the monsoon season, hotels expect low demand and occupancy rates. You can implement revenue tactics such as special promotions and hosting events or conferences to stimulate demand during these times. 

Challenge #3 High Competition

The hotel industry in APAC is marked by intense competition. In Singapore, hotel room supply is projected to grow by an additional 4,900 rooms by 2025. Similarly, the Indonesian hotel market witnesses a rapid expansion of international hotel chains in major cities and tourist destinations 

Do you truly understand your customers and what they value most about your hotel? Reevaluating your digital channels, such as your website and social media presence, is a crucial step. Paying attention to details is key: ensure that the décor and food & beverage options you provide align with the overall message you want to convey. By understanding and catering to your customer’s preferences, you can enhance brand loyalty and deter them from turning to competitors

Think out of box: smart tactics to increase hotel revenue in APAC   

Revenue management tactics do not have to be boring, costly, or resource-intensive. Drawing insights from success stories within the APAC hospitality industry can inspire your next strategic move.    

Tactic #1 Beyond the Hotel Room 

Adopt a holistic strategy when creating your winning revenue strategy. Differentiating your hotel goes beyond luxurious rooms, scenic views, or exceptional customer service. Consider a food and beverage philosophy that resonates with your guests’ lifestyles.  

Ovolo Hotels, a Hong Kong brand, is the first hotel brand globally to provide a vegetarian-lead F&B offering. Ovolo Group believes in ‘eating good to feel good’ and is committed to delivering plant-based cuisine that is good for modern travelers and our planet. This innovative concept has garnered acclaim not only in Australia and Hong Kong but also across Asia.    

Tactic #2 Embedded Insurance  

Have you ever considered embedding insurance in your hotel offering? Explore unconventional offerings to excite your guests. A hotel in Singapore has introduced a unique rain coverage package, partnering with international insurtech discovermarket to refund guests in the form of a voucher if it rains during their stay. This embedded insurance initiative, like InterContinental Singapore’s Rain Resist Bliss Package, has received substantial media attention in the hospitality industry internationally and can serve as a competitive edge and marketing allure. 

Tactic #3 Strategic Partnerships  

You may not be in a top touristy location, and market demand could be limited, causing unstable hotel revenues. You may be in a mature market where revenue growth can stagnate. It is time to rethink how to enhance business volumes through strategic collaborations.  

The recent initiative by the Singapore Tourism Board has granted the country the only stop on Taylor Swift’s Southeast Asia Eras tour, driving up to 30% spike in demand. Those music events are massive opportunities for hotels to shine, as the occupancy rates reached 88.7% during Taylor Swift’s Eras Tour, the highest level since mid-June 2023. By forging partnerships with airlines, government entities, and hospitality alliances, you can create tailored programs that resonate with local experiences, fostering new waves of demands.   


In conclusion, you can unlock new avenues for revenue expansion and competitive differentiation by thinking outside the box and leveraging smart tactics. The possibilities are limitless, from redefining the guest experience through holistic strategies to forging strategic partnerships and exploring unconventional offerings like embedded insurance. However, the core principle remains unchanged: placing the customer at the forefront of every strategy. By prioritizing their needs and crafting unique, memorable experiences, you can establish a golden standard for revenue management, driving sustainable growth and setting yourself apart in the vibrant APAC hospitality landscape. 

References: Statista, TTG Asia, TTG MICE,, TravelDailyNews, Real Estate Asia, HSMAI Asia, CNA, Ovolo Hotels website

Image by benzoix on Freepik

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