Despite occupancy rates that have returned to pre-recession levels in many parts of the world, it is still not clear what 2014 will hold for the hotel market in regards to RevPAR and ADR. In fact, even industry experts are at odds on those projections(1). This apparent ambiguity suggests that, in order to achieve a full recovery, hoteliers need to maintain their focus on optimizing revenue, and not be content merely with achieving heads in beds. One factor that is holding back ADR is that hotel revenue managers and operators are being challenged by considerable segment compression, resulting in very little upward pricing power. Some believe commoditization has created a "pricing ceiling" in some key markets, leading to an inability of hoteliers to push ADR that their properties' inherent value deserves. In truth, the pricing ceiling is a myth; most guests are willing to pay for enhanced value, but only when the value proposition is made clear and often only if they are encouraged. Too many hotels continue to give away premium room tiers discounted or for free (as added value), undermining their ability to differentiate their product and achieve optimized rates. While complimentary upgrades for loyal guests are a fundamental part of the hotel business, the all-too-common refusal or lack of interest to upsell higher room tiers is a tremendous missed opportunity to generate additional revenues at a significant profit margin. Just as importantly, failure to upsell is creating a lesser stay experience for a segment of guests who would clearly benefit from a room product more matched to their needs. Get the full story at