The topic arose during a meeting of HSMAI's Revenue Optimization Advisory Council, where RM leaders shared challenges and insights on how to differentiate relevant data from "noise" on a daily basis.
The group discussed how the current uncertainty —marked by shorter booking windows, changes in demand patterns and greater price sensitivity— demands faster, but also more judicious decisions.
In this context, understanding what a signal is (information that guides an action) and what is noise (Distracting or confusing data) has become a central point for sustaining effective revenue strategies.
Daniel McGarry, Regional Director of Revenue Management (Stonebridge), shared that a “"sign"” It is a significant and actionable piece of data, while the “"noise"” It's a distraction or a red herring.
In times of political and economic uncertainty, differentiating signal from noise becomes increasingly difficult, even for experienced teams.
During the meeting, questions arose such as:
- What data do you trust?
- What facts are you ignoring?
- How do you quickly decide which data really matters?
Key insights from the Council:
- Internal short-term data (pick-up, OTB, year-over-year comparisons, etc.) are what generate the most confidence.
- External data (benchmarking and rate shoppers) are helpful, but only if interpreted in the context of the local market.
- Without clear KPIs, it's impossible to separate signal from noise. Having clarity about what is being optimized is a prerequisite for action.
- Even with sophisticated dashboards, many teams admitted to having "not-so-relevant reports" and excessive analysis that delays decisions.
Practical recommendations from the HSMAI committee:
- Review your reports and analyze each metric that does not directly influence a decision, asking yourself if it is a signal or noise.
- Define 2 to 3 clear KPIs that will be considered primary signals for this season (e.g., % weekly pick-up, average rate vs. forecast, etc.).
- Train the team to interpret contextualized data (market, location, competition) and not rely exclusively on generic comparisons.
- Simplify. If the report is full of charts that no one uses to make decisions, it's becoming noise.


