Hotel Revenue Glossary · Strategy

Market Mix

The proportional breakdown of a hotel's business across different market segments (corporate, leisure, group, OTA, direct, etc.). Market mix is expressed as percentages of total room nights or revenue attributed to each segment.

Why it matters: An optimal market mix balances high-rated segments with reliable base business. Over-reliance on any single segment creates vulnerability — too much OTA erodes margins, too much corporate limits rate flexibility, too much group displaces transient revenue.

Worked example: A 4,200 room-night month: OTA 1,470 at A$205, corporate 1,050 at A$172, direct 1,008 at A$219, group 672 at A$158 — A$808,878 gross, a blended ADR of A$192.59. Take 15% commission off the OTA line and A$45,203 leaves. Move 200 of those nights to direct: gross becomes A$811,678, the OTA deduction falls to A$39,053, and net improves by A$8,950 on exactly the same 4,200 rooms. Mix did that, not rate.

Common mistake: Chasing a mix target without checking what the displaced business was worth. Cutting OTA from 35% to 25% only helps if those 420 room nights reappear elsewhere; if they simply vanish you have swapped A$205 rooms for empty ones. Model the shift as rooms moved, never as a percentage rebalanced on a slide.

All glossary terms Market Segment Business Mix Displacement Analysis