Spillage

Why is it important to monitor spillage in hotels?

Tracking spillage helps guide revenue management strategies, as it highlights missed opportunities: every request turned away or unacquired guest during high demand represents lost revenue.

Common spillage causes include:

• Rates too low, leading to early sell-out
• Limited room availability during peak dates
• Inefficient channel or customer mix management

Monitoring and preventing spillage allows hotels to:

• Increase RevPAR during high-demand periods
• Improve segmentation and selection of the most profitable guests
• Optimize pricing and availability strategies in real time
• Avoid cannibalization from unprotected discounted rates

How is spillage detected in hotels?

Spillage is not calculated with a formula but is recognizable from signs such as requests that cannot be fulfilled due to sold-out dates or early closure of sales leaving potential demand unsatisfied.

Another clue is high requests of bookings from third-party channels while the hotel has no more availability.