Hotels Shift Focus to Revenue Per Guest in Tech Era

As hospitality undergoes rapid digital transformation, the traditional metric of revenue per available room is giving way to a more guest-centric approach: revenue per available guest. This evolving model, known as RevPAG, places the individual traveler at the center of the revenue equation and reflects the shift toward maximizing revenue across every interaction, both inside and beyond the hotel room.

Speaking at Mews Unfold, Leila Jiwnani of Deloitte highlighted that RevPAG represents a broader view of hospitality, one that accounts for the total experience hotels provide. She noted that while food, beverage, and spa services have long been part of the offering, most hotel operations and structures remain focused on room sales. However, shifting consumer behavior is reshaping spending habits, with travelers now prioritizing personalized and immersive experiences over premium room rates.

Jiwnani explained that travelers still maintain a budget for leisure or business travel, but a larger share of that budget is now being allocated to non-room services. Hotels, she said, must leverage technology to capitalize on these opportunities. Dynamic pricing and demand-driven tools can expand offerings, attract a broader audience, and drive profitability beyond just occupancy rates.

Mews founder Richard Valtr echoed the sentiment, noting that modern travelers expect more personalized experiences. His company’s acquisition of Atomize was designed to enhance hotels’ ability to optimize pricing and revenue across various services. He emphasized that RevPAG is essential because each guest has distinct preferences, and personalization can no longer be treated as optional.

Staypineapple President Dina Belon shared how the boutique hotel brand is integrating RevPAG thinking into its operations. She said that while the company monetizes services, it still embraces its “surprise and delight” culture by offering unique complimentary touches. These include exclusive amenities that differ from the regular offerings, adding to the guest experience without devaluing premium items.

Belon also revealed that Staypineapple had upgraded both its property management and point-of-sale systems to improve service delivery and revenue tracking. With better system integration, the company can now view lifetime customer spend across its portfolio, including purchases made through partners or third-party packages, unlocking deeper personalization and strategic upselling.

The conversation also turned to how retail has outpaced hospitality in leveraging technology. Hospitality expert Bashar Wali criticized the industry for its slower pace of innovation, contrasting it with retail’s seamless, tech-driven shopping experiences. He challenged hotels to think like retailers with perishable inventory and embrace technology not as an afterthought but as a core strategy.

Valtr pointed out that hospitality lacked human-centric tools until recently but noted the current wave of technology is intuitive, adaptable, and capable of delivering measurable results. Jiwnani added that RevPAG applies across all hotel segments, from budget to luxury, with customization and data-driven strategies adapting to each tier.

Ultimately, as hotels reframe their approach from rooms to guests, RevPAG offers a more complete picture of value creation. It allows operators to anticipate needs, tailor services, and capture revenue through more meaningful and personalized experiences.

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Hotels Shift Focus to Revenue Per Guest in Tech Era

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