Ask who owns pricing in a hotel, and the answer will often be Revenue Management.

Ask who owns occupancy, restaurant covers, payroll, purchasing or guest satisfaction, and the conversation quickly expands.

If you have responsibility for a profit and loss statement, pricing belongs in your conversation. Alongside volume and cost, you need to understand what guests are willing to pay, why they are willing to pay it and what your business does to earn that willingness.

Pricing starts with value. And everyone in a hotel influences value.

The price appears at the end of a much longer story.

Before a guest sees a rate, they may already have formed an impression of the hotel through its location, reputation, photographs, reviews and the way it describes the experience.

A business traveller might value a quiet room, reliable Wi-Fi and a breakfast that fits an early departure. A couple might value privacy, atmosphere and somewhere special to spend time together. A family might pay more for room arrangements that make their stay easier.

The same hotel can offer different value to different guests. Understanding those differences helps explain why someone would choose it, and what might justify paying more.

This applies across the business. A restaurant sells an occasion as well as a meal. A meeting venue sells confidence that an important event will run smoothly. A spa sells the expectation of feeling better.

The commercial question is: what matters enough to the guest to influence their choice?

Value has to be visible before it can support a price.

Hotels invest in better rooms, thoughtful service and improved facilities. Yet those differences can disappear behind descriptions that sound much like everyone else’s.

“An exceptional stay in a prime location” gives a guest little to assess.

“Walk to your morning meeting, then return to a quiet room away from the main road” explains a practical benefit.

Guests cannot fully experience a hotel before booking. They rely on the evidence available to them. Specific descriptions, representative photographs, clear inclusions and credible reviews help them understand what they are buying.

If the difference is difficult to see, a lower price can become the easiest reason to choose.

That makes marketing part of pricing. It also makes product design, service standards and the booking experience part of pricing. Each influences whether the amount being asked feels justified.

So who owns pricing?

Shared responsibility needs clear decision rights. Everyone influencing value does not mean everyone independently changing prices.

Revenue Management should bring demand intelligence, analysis, forecasting and a disciplined approach to rates and availability. Sales should understand negotiated value and the consequences of concessions. Marketing should make the hotel’s relevance and differences clear. Operations should deliver the experience that supports the promise.

Restaurant, spa and events leaders need the same commercial awareness within their businesses.

The General Manager brings these responsibilities together, with Finance helping assess whether the resulting business delivers an acceptable contribution.

A department head with P&L responsibility cannot consider pricing someone else’s concern. Filling a restaurant, selling a function room or increasing treatment bookings tells only part of the story. The price achieved, the cost of attracting the business and the cost of delivering it determine what that volume is worth.

More business can still produce a disappointing result.

When demand slows, lowering prices can feel like the most direct action available. Sometimes it is the right choice. But a discount should have a purpose.

Which guests are we trying to attract? Will the lower price bring additional business, or reduce revenue from guests who would have booked anyway? What contribution will remain? What happens when we want to restore the price?

A busy outlet with heavily discounted checks can leave little profit. A large event can consume space and service capacity while preventing more valuable business. A room promotion can generate bookings while adding substantial acquisition costs.

Equally, a higher price is useful only when enough guests see a reason to accept it.

Pricing therefore requires a view of demand, value and commercial consequences together. Confidence in our product matters, but guests still have alternatives.

AI adds capability. It also makes ownership more important.

Pricing technology can process data, identify patterns and support decisions at a speed that manual analysis cannot match. Those capabilities are valuable.

But a recommendation still needs a defined objective and an understanding of its assumptions.

Are we trying to improve contribution, build demand in a particular period, strengthen positioning or attract guests who will spend across the hotel? Different objectives can lead to different decisions.

Historical data also reflects the offers, prices and commercial choices already made. It may provide limited evidence about a new experience, a redesigned package or a guest audience the hotel has never properly pursued.

The risk is accepting a recommendation so readily that the discussion becomes smaller. Instead of exploring the commercial opportunity, the team simply decides whether to follow the system.

Leadership remains accountable for the choice. “The model recommended it” does not explain whether the decision served the hotel’s objectives.

The pricing conversation needs a wider table.

A useful pricing discussion should ask more than whether next month’s rates need adjusting.

What do our guests value? Where is that value difficult to see? Which discounts have a clear commercial purpose? Where are we delivering something guests would pay more for, but failing to explain or offer it properly?

These questions connect commercial teams with the people designing and delivering the experience.

They also bring pricing into the everyday decisions of P&L leaders. Changing an inclusion, improving a service, redesigning a menu or removing a source of guest frustration can all affect the value the business can capture.

Everyone has a responsibility for pricing because everyone has a responsibility for value.

Some people create it. Some communicate it. Some deliver it. Some decide how to translate it into an offer and a price.

Those responsibilities need to work together.

If you own a P&L, the question is therefore larger than “How do we sell more?” or “Where can we reduce cost?”

It is also: “What makes our offer worth paying for, and are we capturing that value?”

Hotel distribution has become complicated. And expensive.

CRS. GDS. OTAs. Wholesalers. Bedbanks. Metasearch. Direct. Loyalty. Corporate rates. Affiliates. APIs. Closed-user groups. AI agents.

And because the ecosystem has become complicated, we have started to confuse the mechanics of distribution with the purpose of distribution.

Distribution is not fundamentally about managing channels. It is not about loading rates. It is not about achieving parity. And it is certainly not about being bookable everywhere.

Those are activities.

The principles of distribution are much simpler. They are the commercial reasons distribution exists in the first place – and they remain true regardless of how technology, intermediaries or customer behaviour change.

FIRST: DISTRIBUTION EXISTS TO CONNECT DEMAND WITH SUPPLY.

A hotel room has no commercial value if the customer who wants it cannot find it and buy it. Distribution exists to create that connection. Its fundamental purpose is to make the hotel’s inventory available to the demand the hotel wants to capture, at the right time, in the right place and under commercially sensible conditions.

Everything else – channels, systems, contracts, connectivity and rate plans – exists to make that happen.

1. DISTRIBUTION STARTS WITH DEMAND, NOT CHANNELS.

“Should we be on this channel?” is the wrong first question.

The first question is: What demand are we trying to reach?

Where does that demand exist? What does it need? Where does it search? What influences its decision? And where is it willing to transact?

Only once we understand the demand can we decide which routes to market are necessary to reach it.

Distribution should follow demand strategy. It should never replace it.

2. DISTRIBUTION CANNOT CREATE RELEVANCE.

Being available does not make a hotel desirable.

Distribution can put a hotel in front of a customer, but it cannot compensate for a proposition that does not meet that customer’s needs. If the location, experience, product, price or proposition is not relevant, adding another channel will not solve the problem.

This is where distribution connects directly to all other commercial functions: U

Understand the demand.
Create a relevant proposition.
Make it visible where that demand is looking.
Give the customer an effective route to convert.

Distribution operates across this journey, but it cannot fix a weakness in every part of it.

3. DISTRIBUTION IS ACCESS TO DEMAND.

A distribution partner should give the hotel something commercially useful.

That might be access to demand the hotel could not efficiently reach itself. It might be geographic reach, a specific customer segment, corporate travel buyers, loyalty members or customers who prefer a particular booking environment.

The question is not simply: “How much business does this channel produce?”

It is: “What demand does this channel give us access to?”

If multiple channels are simply competing for the same customer, more distribution may not mean more demand.

It may simply mean more ways to pay for the demand you already had.

4. VISIBILITY HAS VALUE – BUT ONLY IF IT REACHES THE RIGHT DEMAND.

Distribution is partly a visibility system.

Hotels participate in marketplaces because those marketplaces aggregate customers. Position, ranking, recommendation, availability and competitiveness can all influence whether a hotel enters the customer’s consideration set.

But visibility itself is not the objective. Visibility to the wrong customer has little value. And paying for greater visibility without understanding what incremental demand it generates can simply increase the cost of acquiring the same customer.

The objective is not maximum visibility. It is relevant visibility.

5. A BOOKING IS NOT THE SAME AS VALUABLE DEMAND.

Two bookings for the same room at the same selling price can have very different commercial value.

One may arrive directly with a low acquisition cost and a customer relationship the hotel owns. Another may carry commission, wholesale margin, marketing costs, loyalty discounts or other acquisition costs. Distribution therefore cannot be evaluated purely on topline revenue.

Hotels need to understand what demand costs to acquire, what conditions accompany it, what customer relationship remains after the transaction – and whether the channel is genuinely incremental.

The objective is not simply more bookings. It is more valuable demand.

6. EVERY RATE HAS A DESTINATION – AND SOMETIMES MORE THAN ONE.

Hotels like to think in channel boxes. The customer does not.

A rate provided to a wholesaler may travel through bedbanks, affiliates, travel agencies, loyalty programmes, banks or other intermediaries before eventually reaching the customer.

The distinction between B2B and B2C is blurred. Once inventory enters the distribution ecosystem, hotels need to understand not only who they contracted with, but also where that inventory is allowed to go.

A distribution decision is therefore not complete when a rate is loaded. It is complete when the hotel understands where that rate can ultimately appear.

7. PRICE IS PART OF THE PRODUCT THE CUSTOMER SEES.

Hotels often separate brand, marketing and pricing decisions internally. Customers do not.

A customer seeing one price on the hotel website and another somewhere else does not experience this as a Revenue Management issue or a wholesale contracting issue.

They experience it as part of the hotel.

Price affects trust, perceived value and the decision to book. That means distribution decisions can become brand decisions – and rate leakage can become a customer experience problem.

8. DIRECT IS A ROUTE TO MARKET, NOT THE STRATEGY.

“Grow direct” sounds like a strategy. It isn’t.

Direct can provide lower acquisition costs, stronger customer ownership and greater control of the booking journey. Those are important advantages.

But customers will not necessarily book direct simply because the hotel wants them to. The hotel still needs to earn the booking through relevance, visibility, value and ease of conversion.

The objective should therefore not be to eliminate intermediaries. It should be to understand when the hotel needs an intermediary, what value that intermediary provides and what that access costs.

Hotels have spent years framing distribution as direct versus third party. But that distinction is becoming less useful.

The company that creates the demand, the company that processes the transaction, and the company that builds the longer-term customer relationship do not necessarily have to be the same company anymore.

A guest might discover a hotel through an OTA, be influenced by social media or AI, book through another intermediary, and still become a highly valuable repeat customer of the hotel.

Equally, a guest might book directly after being acquired through expensive paid media – making the “direct” booking considerably less direct, and potentially less profitable, than the booking source suggests.

So perhaps the better question isn’t: “How do we get more guests to book direct?”

It is: “Who creates the demand, who converts it, what does that cost us – and who owns the customer relationship afterwards?”

Direct remains an important route to market. But it is a route, not the objective. The objective is to acquire the right demand at the right cost, make conversion as effective as possible, and create a guest relationship whose value extends beyond the first transaction.

Because in an increasingly interconnected distribution ecosystem, who takes the booking may matter less than who creates – and ultimately retains – the customer value.

9. MORE DISTRIBUTION DOES NOT AUTOMATICALLY MEAN MORE DEMAND.

Being bookable in more places increases theoretical reach. It does not necessarily increase demand.

If ten channels reach the same customer, the hotel has not created ten sources of demand. It has created ten possible routes through which the same demand can convert.

Every additional route creates potential benefits – but also complexity, cost and the possibility of unintended redistribution.

Good distribution is therefore not about being everywhere. It is about being where it matters.

10. DISTRIBUTION IS A COMMERCIAL RESPONSIBILITY.

Revenue Management may manage much of the machinery, but distribution outcomes are created across the commercial organisation.

Marketing influences where demand begins. Sales determines which customers and intermediaries receive access to inventory and under what conditions. Revenue Management controls price, availability, restrictions and channel economics. Digital and E-commerce influence discovery and conversion. Finance helps determine the true economics of acquisition. Leadership decides what kind of demand the business wants to pursue.

Distribution therefore cannot belong to one department.

The better question is not: “Who owns distribution?”

It is: “How do we collectively acquire the most valuable demand?”

The customer does not care about your ‘distribution strategy’.

Customers do not care whether a rate originated in the CRS, through a wholesaler, an OTA, a corporate agreement or a loyalty programme. They care about finding an option that meets their needs, at a price they consider reasonable, through a booking route they trust.

AI will make this even more obvious.

An AI agent asked to find the best hotel or the best available option will not respect the organisational boundaries hotels have created around Revenue, Sales, Marketing or Distribution.

It will search the ecosystem available to it. Which means hotels increasingly need to understand distribution from the outside in.

Search for your own hotel.

Compare it.

Ask AI about it.

Follow your rates.

See what the customer sees.

Because ultimately, distribution is not about where the hotel thinks it sells. It is about where, how and under what conditions the customer can actually buy it.

The simplest way to think about it

Demand → Relevance → Visibility → Conversion → Total Revenue

Demand
Who are we trying to reach?

Relevance
Why should they choose us?

Visibility
Where do we need to be present so they can discover and consider us?

Conversion
What is the most effective and commercially sensible route for them to book?

Total Revenue
Once we acquire the guest, how do we maximise the value of that relationship – across rooms, F&B, spa, experiences and other spend – rather than simply optimise the room booking?

Distribution connects the first four, but its commercial impact reaches the fifth.

Because the objective is not simply to distribute rooms more efficiently. It is to acquire the right guest, at the right cost, and maximise the total value of that guest once acquired.

And that may be the most important first principle of all:

Distribution is not channel management. Distribution is the commercial architecture connecting demand to guest value.

The hospitality industry loves a dashboard.

Give us more data. Better data. Real-time data. Benchmark data. AI-powered data.

And there is nothing wrong with that.

For years, F&B has operated with far less commercial intelligence than rooms. While Revenue Managers can analyse demand patterns, booking windows, channel mix, pricing and pace, many F&B leaders are still working with yesterday’s revenue, covers and average check.

So yes, we absolutely need better F&B data.

But there is a problem.

Better data does not automatically create better decisions.

And a dashboard does not create a commercial mindset. This is why, at CUBE, we believe the order matters.

Commercial education first. Data second.

Not because data is less important. Because when the data arrives, people need to know what to do with it.

The danger of starting with the tool

Imagine giving an F&B team a new analytics platform.

Suddenly they can see revenue by hour. Average check. Covers. Beverage mix. Item performance. Table duration. Revenue per available seat hour.

Great.

Now what?

If the team has not developed the commercial curiosity to interrogate the numbers, the dashboard quickly becomes another reporting tool.

Revenue is down.

Average check is down.

Beverage sales are below target.

Friday lunch is underperforming.

Interesting. But none of those observations make you more money. The commercial value starts with the next question:

Why?

And then:

What can we do differently?

That is a very different conversation.

Perhaps Friday lunch does not have a revenue problem. It has a demand problem.

Perhaps the restaurant has demand, but not enough visibility.

Perhaps people are finding the restaurant, but the offer is not relevant enough to make them choose it.

Perhaps guests are booking and dining, but the team is missing opportunities to convert demand into higher value through drinks, add-ons, premium choices or another visit during the stay.

The data can point us towards the problem. It still takes commercial thinking to find the opportunity.

Data tells you what happened. It doesn’t always tell you what could have happened.

This is one of the limitations of relying too heavily on historical data.

Your POS can tell you what you sold. It cannot always tell you what you could have sold.

It knows that a guest ordered one glass of wine. It does not know whether the guest would have ordered a bottle if someone had made the right recommendation.

It knows that a table spent $150. It does not know whether they would have stayed for dessert, moved to the bar for another drink, booked brunch the next morning or returned for a special dining event.

It knows how many people came through the door. It does not know how many people never considered coming through the door in the first place.

That is why F&B revenue optimisation cannot begin and end with POS data. We need to look beyond the transaction.

At CUBE, we look at the wider commercial journey through four lenses:

Demand → Visibility → Relevance → Conversion

• Is there demand for what we are offering?
• Are we visible where that demand exists?
• Is the proposition relevant enough for someone to choose us?
• And once we have their attention – or have them sitting in our restaurant – how effectively do we convert that opportunity into revenue?

The answers will never come from one dashboard alone.

The most valuable question is rarely “What does the data say?”

The more interesting question is: “What are we going to do about it?”

This is where commercial education becomes critical.

Before introducing more sophisticated F&B data tools, we want leaders and teams to understand the commercial levers available to them.

How does demand influence performance?

How can we create demand rather than simply wait for it?

How do pricing, menu engineering, capacity and table duration interact?

What is the relationship between covers, average check and revenue per hour?

How does the server influence revenue?

Where are the revenue moments across the guest journey?

What can Marketing, Revenue, Sales and Operations do together to improve F&B performance?

Because once teams start thinking this way, something interesting happens.

They start asking better questions of the data.

Instead of: “What was our average check last month?”

They ask: “Why is average check higher on Saturday than Friday?”

Instead of: “Which dishes sell the most?”

They ask: “Which dishes contribute most to revenue and margin – and are we giving them enough visibility?”

Instead of: “How many covers did we do?”

They ask: “At what times are we turning demand away, and at what times do we have capacity we could monetise?”

Instead of: “Beverage revenue is down.”

They ask: “Is beverage spend down because of our guest mix, our offer, our pricing – or because we are simply not selling?”

Now the dashboard becomes useful. Because the people looking at it know what they are looking for.

Data should create curiosity, not dependency

There is another risk with becoming too “data-driven”. We start waiting for the data to give us the answer. But sometimes the most valuable commercial opportunities have no historical data.

You may have never offered a pool-day package to local residents.

You may have never sold a five-course anniversary dinner on the beach.

You may have never opened the restaurant at a different time.

You may have never incentivised servers around beverage conversion.

You may have never targeted a specific local audience.

So there is no historical performance to analyse. Someone has to have the commercial instinct to say:

“What if?”

Then test it.

Measure it.

Learn from it.

And optimise it.

That is how new data is created.

The strongest commercial organisations are therefore not simply data-driven. They are commercially driven and data-informed. There is a difference.

Technology is the enabler. Capability is the advantage.

We are strong believers in better F&B data.

Hotels should be able to extract more value from the enormous amount of transactional information sitting inside their POS systems. The right technology can make that data accessible, visual and actionable in ways that traditional reporting simply cannot. But buying the platform is the easy part. The competitive advantage comes from what happens next.

What do your leaders notice?

What questions do they ask?

What assumptions do they challenge?

What experiments do they run?

And how quickly can they turn an insight into action?

This is why CUBE approaches F&B Revenue Optimisation in this order:

Build the commercial mindset.

Understand the revenue levers.

Learn to ask better questions.

Then bring in richer data and better tools.

Because ultimately, the objective is not to create more dashboards. It is to create more commercially capable people. People who can look at a number and see an opportunity. People who understand that data tells us what happened – but commercial thinking helps us decide what happens next.

And when you combine the two?

That is when data starts making you money.