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Commercial strategy

Where segment mix, premium-room strategy, and long-range positioning are set.

Commercial strategy at Barnhill is the annual planning discipline that sets the segment-mix targets, premium-room strategy, channel-cost ceilings, and RevPAR Index goal for the next twelve months — reviewed quarterly and reset annually with ownership.
Who this is for

Properties that need a real twelve-month plan.

Daily revenue management without a commercial plan is reactive. Commercial strategy is where the goals are written down, the trade-offs are made explicit, and the year is actually decided before it starts.

What’s included
  • Annual segment-mix targets (transient, group, contract, negotiated)
  • Premium-room category mix strategy
  • Channel-cost ceiling and direct-booking targets
  • Annual RevPAR Index goal-setting
  • Quarterly commercial strategy memo to ownership
  • Comp-set composition review
  • Rate-positioning strategy (BAR ladder structure)
Sample deliverable

The annual commercial plan.

Roughly 12–16 pages. Written. Owned by the property GM and Barnhill jointly. Defended with ownership at year-start, reviewed quarterly, reset at year-end. It is the document that turns daily revenue work into a year of intentional outcomes.

How we measure success
KPITarget range
RevPAR Index movement (year over year)+5 to +10
Direct-booking mix≥ 38%
Channel cost % of revenue< 9% blended
Premium-room mix vs. inventory mixPremium revenue ≥ inventory share
Segment-mix variance to planWithin 5 points
FAQ

Questions about this service.

Is commercial strategy different from daily revenue management?

Yes. Daily revenue management is execution; commercial strategy is the framework execution serves. The first sets prices today; the second sets the targets that prices, channels, and segments should be moving toward over the year.

Do you involve ownership and the asset manager in commercial planning?

Always. The annual commercial plan is presented to ownership and asset management each year. Quarterly memos go to the same audience. This is the discipline where revenue strategy becomes legible to people who do not live in the property systems every day.

How do you set the comp set?

During onboarding and again annually. The comp set is selected from properties competing in the same market, segment, ADR band, and product class. STR will issue the official report, but the composition decision is ours and the owner’s — not the brand’s default.

What is the difference between commercial strategy and a marketing plan?

Marketing plans cover demand creation (campaigns, channels, OTA spend, brand programs). Commercial strategy covers demand monetization (segment mix, rate positioning, channel cost, premium-room mix). They overlap at the channel-strategy layer; we coordinate with your marketing partner or director where one exists.

Is this available at Essential tier?

Commercial strategy in its full form is a Signature-tier discipline ($4,000/month). Essential and Premier engagements include directional commercial input as part of the weekly cadence and annual SRP/forecast work.

Want to see this discipline run on your hotel?

Schedule a 30-minute discovery call — we’ll walk you through how this would look on your property in the first 30 days.

Schedule a Strategy Call