What is a hotel’s "sales mix"?

A hotel's "sales mix" refers to the combination of different revenue sources or market segments contributing to its total sales. This concept is critical in understanding how different types of customers and services generate revenue for the hotel. By analyzing the sales mix, hotel management can identify which market segments are the most profitable, evaluate the performance of various services, and adjust their strategies accordingly.

For instance, a hotel might find that a significant portion of its revenue comes from business travelers, while another portion is derived from leisure guests or group bookings. This insight allows the hotel to tailor its marketing efforts, pricing strategies, and service offerings to better meet the needs of its most lucrative customer segments.

This understanding of the sales mix is essential for financial planning and helps hotels maximize their profitability by focusing resources on the segments that contribute most effectively to overall revenue.