Remember those classmates in high school who always had their homework done early? Meanwhile, many of us left things to the last minute, hoping for the best.
In hotel revenue management, both approaches can be risky. Plan too late and you miss out on opportunities. Plan too far ahead and market conditions may shift.
In 2026, hotels need to strike a balance: plan ahead, but stay agile.
While global hotel rates are expected to remain relatively stable, geopolitical uncertainty and economic volatility may create downward pressure on pricing and lead to unpredictable booking patterns, according to Amex GBT’s Hotel Monitor 2026.
The Best-Laid Schemes Often Go Awry
Forecasting is the foundation of smart planning, especially in uncertain times. By anticipating demand, you can better align your pricing and marketing activities with shifting travel patterns.
Problem is, the further out you plan, the more likely your assumptions will become outdated. While seasonal and day-of-week patterns tend to be consistent year over year, there are always unexpected surprises.
As the Scottish poet Robert Burns wrote in 1785, “The best-laid schemes of mice and men often go awry.” And it’s not just mice and men, it’s revenue managers too. Despite careful planning, sudden market shifts can result in lost revenue – or new opportunities.
As the arrival window approaches, you gain more visibility into actual demand. You can review business on the books, assess pickup trends, and compare the booking pace to previous years.
That’s where late-stage planning offers real value. Regular re-forecasting helps you spot gaps, course-correct, and optimize campaigns and pricing to reflect current conditions.
The Earlier You Plan, the More Flexible You Must Be
Big-brand hotels and chains often fall into the early-planning trap. With multiple layers of approval, operators must submit budgets, forecasts, and marketing plans months in advance. But by the time the booking window arrives, the strategy may no longer match the market.
If demand ends up softer than expected and the hotel doesn’t respond quickly, it could fall well short of budget. And the larger the organization, the harder it is to change course.
The Big Advantage for Small Hotel Companies: Agility
Independent hotels and mid-market groups have a secret weapon: flexibility.
With fewer administrative hurdles and less reliance on long-range group or wholesale business, smaller operators can wait longer before locking in strategies. They can also pivot quickly when needed.
This leads to more targeted campaigns and pricing. Instead of relying on educated guesses, you’re responding to what’s actually happening in your market. That agility helps level the playing field when competing with larger brands.
So When Should You Plan?
There’s no one-size-fits-all answer, and hotel owners may have different preferences. But here’s a general planning guideline for independent hotels and small groups:
- Annual Budget & Marketing Plan: Start preparing three months before year-end. Finalize by early December, including high-level revenue targets and seasonal goals.
- Pricing: Load rate plans in the PMS at least a year in advance to capture early bookers. Then adjust pricing throughout the year based on demand shifts.
- Forecasts: Forecast for the full year ahead, and update the numbers weekly to reflect current pickup trends and booking pace.
- Campaigns & Promotions: Plan seasonal campaigns well in advance but refine the messaging and timing as each season approaches, using your most recent data.
Whatever the task, the key is not to “set it and forget it.” Stay flexible, monitor performance regularly, and improvise as needed.
Your Planning Assistant: A Revenue Management System (RMS)
Sound like a lot of work? It can be. But a revenue management solution makes it easier by supporting both long-term planning and last-minute tweaks.
RoomPriceGenie continuously monitors market demand, competitor rates, and your hotel’s booking patterns, automatically updating your pricing to match real-time conditions. It reacts faster than any human can, helping you stay ahead of the market.
For example, RoomPriceGenie’s Surge Protection feature alerts you when there’s a spike in bookings for a given date, increasing your rates automatically to help you capture more revenue.
Smart Planning Means Knowing When to Do (and Redo) Your Homework
Like the best students, great revenue management leaders prepare early, but they also check their work before handing it in. And they’re not afraid to make last-minute edits when the facts change.
That’s how you stay ahead of the curve in 2026, even when demand is uncertain and the market throws a surprise quiz your way.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
