Pregunta para nuestro panel de expertos en gestión de ingresos:
Is standardising room categories boosting bookings but diluting hotel individuality, or limiting a property’s ability to stand out and stay profitable? (Question by Nikolas Hall)
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Nuestro panel de expertos en gestión de ingresos
- Massimiliano Terzulli – Consultor de gestión de ingresos, equipo de ingresos de Franco Grasso
- Tamie Matthews - Consultora de ingresos, ventas y marketing, RevenYou
- Pablo Torres – Consultor Hotelero
- Mariska van Heemskerk – Propietaria, Revenue Management Works
- Niko Krauseneck - Fundador, RevenueRebel
- Heiko Rieder, vicepresidente sénior de Comercio y Distribución de Step Partners Europe
- Chaya Kowal – Directora de Gestión de Ingresos, Potato Head Family
- Dermot Herlihy – Director de Ingresos del Grupo, Orascoma Hotels Management
- Silvia Cantarella - Consultora de Gestión de Ingresos, Revenue Acrobats
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“Unfortunately, the rigid protocols of OTAs don’t help in highlighting the uniqueness of hospitality properties. Customising the names of room types is always a challenge.
On one hand, I fully understand the need to standardise content and avoid grey areas in order to boost conversion. On the other hand, however, it’s up to the hotels to find the most effective ways to stand out, given the limitations imposed by the OTAs. Photos and room descriptions can certainly play a big role, but the most effective move to bypass OTA standardisation is to invest in a high-quality website, one that is rich in content and useful information; one that is capable of showcasing all the unique features of the property.”
“Based on ten years of experience with RevenYou, collaborating with diverse accommodation providers ranging from hotels to caravan parks, I’ve consistently observed a direct correlation between simplified, standardised room type names and increased conversion rates.
My core belief is that room names should provide customers with a clear, concise understanding of the room’s features whilst highlighting its unique selling points (USPs). We cannot rely on customers to read descriptions, the USP must be in the name.
As a standard practice during our onboarding process, we conduct a thorough review of a property’s room type names. Often, this involves transitioning from complex designations, such as ‘Deluxe Executive Room,’ to more straightforward labels like ‘Queen Room,’ ‘King Room with Sea View,’ or ‘Two-Bedroom Apartment with Two Bathrooms.’
These adjustments are then implemented across all distribution channels, ensuring parity not only in pricing, but also in the terminology and amenities presented. This uniform messaging empowers customers to make informed decisions quickly and confidently.
For instance, a prominent hotel in a major city’s business district, which RevenYou began working with in 2024, utilised room names based on square metres (e.g., ‘Studio 34,’ or ‘Apartment 56’). These names lacked clarity and failed to emphasise key features. By rebranding them as ‘Studio Queen,’ ‘Studio Queen with Balcony’ (the balcony is a prominent USP), and pricing the USPs accordingly, the hotel witnessed a significant occupancy increase from 60% to 95%. This illustrates the power of clear, customer-centric room naming in driving revenue.”
“When every hotel gets boiled down to the same generic “Deluxe,” “Superior,” or “Standard” labels, it makes it harder for properties to stand out. Boutique and independent hotels, in particular, thrive on differentiation (a historic suite, a themed room, or a one-of-a-kind oceanfront villa). Strip away that uniqueness, and they risk becoming just another listing in a sea of options.
That being said, some hotels are finding ways to work within the system while maintaining their identity. Take luxury brands like Four Seasons or Aman: sure, they use room categories for OTAs, but on their direct booking channels, they highlight unique features, exclusive perks, and storytelling to keep their brand personality intact.
So, while standardisation can help conversions, relying on it too much can hurt long-term profitability by making a hotel just another commodity. The trick? Use it for OTAs but keep the magic alive on your own platforms.”
“In my opinion, this is already happening when big partners decide for you what naming is possible when you sell your rooms on their website.
But often we find that there are still so many categories to choose from and it is never exactly what it should be in the eyes of the hotelier. It all comes down to ensuring that the descriptions make sense, and that the difference between one room category and another is clear. But does it really matter if we call it economy or small double? Or Classic vs. Superior vs. Deluxe vs. Executive? Within branded hotels it can help of course to see difference between subbrands in the way we define the categories, but boutique hotels / smaller chains / standalone hotels / or even bigger chains with no one size fit’s all module? Ensure the description make sense, and guests know the value of an upgrade.”
“Indeed an intriguing question. In my opinion, standardising room categories helps guests know what to expect, which boosts confidence and, ultimately, satisfaction. A clear, predictable booking process can absolutely drive conversions.
But does it kill a hotel’s uniqueness? Not if the fundamentals of brand marketing are solid. A hotel that knows its target audience, stands for clear values, and translates that into design, service, and communication won’t lose its distinctiveness just because OTAs use standard room labels. The real differentiator isn’t the name of the room; it’s the experience guests have once they’re there and along the whole guest journey.”
“The solution to boosting conversion rates without compromising brand identity lies in Attribute-Based Pricing. There are booking approaches that consolidate numerous room categories in the Property Management System into just a few in the booking engine. During the booking process, consumers can then add attributes tailored to their personal preferences to the shopping cart. These attributes could include, for example, a beautiful room view or an extra-large adjoining room.
The booking system assigns the reservation back to the corresponding room category in the PMS based on the selected room category and attributes. This ensures that the essential, detailed room categories required for room allocation at front office remain intact within the Property Management System.”
“Standardising room categories makes sense for simplifying the booking process and helping travellers compare options easily, but I think the impact really depends on the type of property and business model. For hotels that focus on experience over just selling a product, this approach can strip away their uniqueness and make it harder to justify premium pricing, especially for specialty rooms like sea-view suites or exclusive villas.
On the other hand, for properties aiming to fill their entry-level categories quickly, standardisation might work in their favour. The key is finding a balance – ensuring visibility on OTAs, while still maintaining a distinct identity that drives direct bookings and long-term brand value.”
“Boutique and independent hotels often use named room categories to tell their story, linking bigger marketing elements to them. On the OTAs, these rooms can lose their individuality and location if they are made to follow common naming conventions like “Deluxe Double” or “Standard King”. Eventually, this dilutes their uniqueness and the aim of creating a story.
I do believe there is a compromise, though, by implementing a two-tiered approach: use simpler, more identifiable labels on OTAs for discoverability, while maintaining distinctive branding and storytelling on direct channels (“Deluxe King with City View”).
We see room categories going through more generic brand filters as a result of the rise of brands like Hyatt’s Unbound and Marriott’s Autograph Collection, which combine the independent hotels stories with the chains. As long as hotels maintain some degree of control over how their rooms are marketed and presented across channels, the conversion gains don’t have to come at the price of long-term profitability.”
“Working primarily in the luxury sector, I am convinced that the standardisation of categories goes against the uniqueness of the property and profitability, but I also believe it can be leveraged as an advantage in direct sales compared to OTAs.
There are very specific room types that require a description or particular features that are not always included in the options available on OTAs, which, from an intermediary perspective, disadvantages the property.
However, considering that guests can consult various points of sale, it becomes an opportunity when the customer lands on our website, and we can make a difference by presenting the room categories in an interesting, unique, and engaging way to encourage not only direct sales, but also upselling to higher categories.”
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