How to develop a successful revenue management strategy

From understanding the nuances of refurbishment to creating diverse revenue streams, Cockell offers insights into how independent hotels can thrive in an ever-changing market.

From Early Beginnings to the Cotswolds

Cockell’s route into hospitality was fuelled by his fascination with revenue management and operations. His early career provided him with hands-on experience in maximising efficiency while understanding the importance of customer-driven strategy. “Revenue management spoke to me because I’ve always loved solving problems,” Cockell reflects. “It’s not just about looking at numbers—it’s about understanding behaviours, trends, and how to make informed decisions that push a business forward.”

This analytical mindset would prove essential when the opportunity to acquire The Old Stocks Inn arose. Situated in Stow-on-the-Wold, a picturesque Cotswolds market town, the property was already operating but lacked a distinct identity. “We ran it as it was for the first nine months,” Cockell explains, emphasising how valuable that time was in understanding the inn’s strengths and weaknesses. “You really get to learn how the operation ticks, where the gaps are, and what guests genuinely value.”

Refurbishment: The Challenges and Lessons Learned

After the learning phase came the major refurbishment. For Cockell, this was an opportunity to redefine The Old Stocks Inn and create a vision that balanced heritage with modern boutique luxury. “We wanted to take a 17th-century building and breathe new life into it while respecting its history,” he explains.

However, like any refurbishment, challenges quickly surfaced. From unexpected building issues to the complexities of balancing design with function, the project was a steep learning curve. “I’d say the biggest lesson is to expect the unexpected,” Cockell advises. “When you’re dealing with older buildings, things will go wrong—it’s inevitable. You need contingency plans and budget buffers because you’ll uncover surprises no matter how well you plan.”

For hoteliers considering similar projects, Cockell stresses the importance of clear priorities. “It’s tempting to go overboard with the aesthetics, but functionality matters. Think about the long-term—what’s going to add the most value to your guest experience and operational efficiency?”

Diversifying Revenue Streams: A Key to Longevity

One of Cockell’s most significant achievements has been diversifying revenue streams at The Old Stocks Inn. “You can’t rely on room rates alone to drive your business forward,” he asserts. Recognising the opportunities beyond accommodation, he developed initiatives that appeal to both hotel guests and the local community.

The inn’s coffee shop and seasonal events, for example, have become integral parts of its offering. “Not everyone wants to book a room, but they’ll happily come in for coffee or afternoon tea,” Cockell explains. These initiatives not only generate revenue but also help build a loyal, local customer base—a critical advantage for hotels outside urban centres.

Another key realisation for Cockell was observing how guest needs evolve over time. “We’ve seen families grow up with us,” he says. “Guests who came to us as couples might now visit with young kids, so we’ve adapted what we offer to keep them coming back.” This kind of agile thinking ensures that The Old Stocks Inn remains relevant to its customers through different life stages.

Navigating the Cost-of-Living Crisis

The past year brought significant challenges for hospitality businesses, with rising costs and shifting customer expectations. For Cockell, maintaining quality while managing costs required careful decision-making. “You have to be laser-focused on your priorities,” he says. “It’s about reducing waste and finding efficiencies without compromising the guest experience.”

Revenue management skills once again proved vital. Cockell emphasises the importance of understanding when to make pricing decisions and when to hold back. “It’s easy to panic and discount, but you need to trust your data and have a strategy. Sometimes, protecting your brand value is more important than filling every room at any cost.”

His advice to hoteliers navigating similar pressures? “Surround yourself with people who’ve been there before. Experience matters, and it’s invaluable to have trusted peers who can offer perspective and advice.”

For Cockell, one of the greatest advantages independent hotels have is their ability to form genuine, personal connections with guests. This is something The Old Stocks Inn actively leans into. “There’s nothing better than word-of-mouth marketing,” he says. “If you create an experience people want to talk about, you’ve already won.”

He highlights the role of familiarity in building lasting relationships. “Guests want to feel like they know you and that you know them. It’s those little details—remembering their preferences, welcoming them back—that build loyalty.”

Looking Ahead: Trends and Opportunities

As the industry enters 2024, Cockell is cautiously optimistic. While challenges such as rising costs and staff shortages remain pressing, he sees opportunities for hoteliers who can adapt quickly. “People are still willing to spend on experiences, especially when they feel it’s worthwhile,” he says.

He also sees sustainability playing an increasingly central role. “Consumers are becoming more conscious about where they spend their money. Hotels that demonstrate a commitment to sustainability and authenticity will stand out,” he notes.

When asked what hoteliers can do to make the industry a better place, Cockell’s response is clear: invest in people. “The industry has to move beyond seeing staff as a cost. If you look after your team, they’ll look after your guests. Simple as that.”

He advocates for better career progression and support systems within hospitality to attract and retain talent. “It’s not just about the pay—it’s about culture, growth, and making people feel valued. If we can make hospitality an aspirational career choice, the entire industry will benefit.”

Advice for Aspiring Hoteliers

Reflecting on his journey, Cockell offers a final piece of advice for aspiring hoteliers: “Listen and learn. Whether it’s from your guests, your team, or industry peers, there’s always something to gain. And don’t be afraid to make mistakes—just make sure you learn from them.”

Jim Cockell’s transformation of The Old Stocks Inn is proof that independent hoteliers can thrive through vision, adaptability, and a deep understanding of their guests. By embracing diversification, strategic revenue management, and meaningful guest relationships, Cockell has not only created a successful business but a hospitality experience that resonates far beyond its Cotswolds location. For those navigating the challenges of the modern hotel market, his story is both inspiring and practical—a reminder of the power of problem-solving and personal connection.