It is becoming increasingly common for hotel owners and others in the hospitality industry to acquire revenue management consulting services to optimize prices, distribution, and occupancy rates and maximize financial results. These services will often be acquired from a revenue management consulting firm. In this article, you will learn about the benefits of enlisting a revenue management consultant for your hotel.

Table of Contents:

What Is a Consultant?

Simply put, a consultant is a third-party expert who comes into a business offering fresh eyes and specialized assistance. Consultants will typically work to gain an understanding of how your organization currently functions and then provide advice on steps you could take to improve performance or optimize results.

According to the Management Consulting Services Global Market Report by The Business Company, the global management consulting market size is projected to grow at a CAGR of 3.7% by 2026.

A revenue management consulting professional will typically come into a hotel and offer these basic services. They may evaluate your inventory, current pricing strategy, chosen distribution channels, and historical information about levels of customer demand and then offer advice on maximizing revenue.

Video: What Is a Revenue Manager?

Why Hotels Need to Hire a Revenue Management Consulting Firm?

As the hospitality industry becomes more reliant on data and technology, an increasing number of hotels, particularly independent properties and regional chains, are turning to revenue management consulting firms. This is largely due to a shortage of in-house talent, fast-changing technology, and pressure to outperform competitors in volatile markets.

The shift was accelerated by the COVID-19 pandemic. According to the American Hotel & Lodging Association (AHLA), 65% of hotels continue to report staffing shortages as of February 2025, down from 76% in May 2024. The staffing shortages leave less time for hoteliers to dedicate to revenue management.

At the same time, rising costs from inflation, wages, and supply chain issues are tightening margins. The persistent challenge means hotels need external expertise to handle advanced pricing strategies, demand forecasting, and competitive analysis.

In this high-stakes environment, where a 5% increase in RevPAR can translate to millions in added revenue annually, hotels are realizing that the cost of not optimizing is far greater than the cost of hiring a consultant.

Krunal Shah - revenue manager

Krunal Shah, Director of Revenue Management, The Biltmore Mayfair, LXR Hotels & Resorts

“Revenue Management is the key to hoteliers. It allows them to maximise revenues and yields using smart tech and data analysis. Good budgeting is always a first step for rate management. Growth according to market conditions will be based on the previous year’s data. However, increasing revenues by a set percentage without the intervention of Revenue Managers leads to disaster as many factors need to be taken into consideration which are available with the revenue team. Aggressive budgeting is usually conducted by non-hospitality professionals who enter the business in good times with a lack of knowledge. This leads to a drop in revenues, and profitability as well as an overall negative impact on the existing business.

Always look at the demand and supply (What was good last year? What went wrong last year? What you could have done that you did not do?) and act accordingly while making your budgets. Revenue Managers have accurate data to analyse and justify the numbers accordingly.”

Click here to read the risks of ignoring revenue management’s budget advice from our Expert Panel.

Table: Problems & Examples of Actions Taken by Revenue Management Consulting Firm

Below are some of the common examples of problems faced by hotels that revenue management consulting firms are hired to help solve. The table also shows the potential risks and benefits for hotels.

Reason for Hiring Actions Taken by Consultancy Risks for Hotels Benefits & Outcomes
Declining Revenue Conduct a thorough revenue audit and analysis.
Implement pricing and distribution strategies.
Train hotel staff on revenue management practices.		 Consulting fees may add to operating expenses.
Reliance on consultants may impact in-house skills.
Resistance or staff turnover during changes.		 Improved revenue generation and profitability.
Enhanced competitiveness in the market.
Enhanced staff knowledge and skills.
Competitive Market Competitive market analysis and benchmarking.
Develop a competitive pricing strategy.		 Potential overreliance on benchmarking data.
Risk of pricing wars if competitors react aggressively.		 Better understanding of market dynamics.
Improved positioning against competitors.
Maximizing Occupancy Optimize inventory and room allocation.
Implement dynamic pricing and yield strategies.
Evaluate distribution channels and partnerships.		 Risk of overbooking or underbooking.
Potential guest dissatisfaction due to pricing changes.
Distribution channel costs may increase.		 Higher occupancy rates and revenue.
Improved revenue per available room (RevPAR).
Enhanced distribution efficiency and reach.
Improving Distribution Assess current distribution channels.
Expand online presence and visibility.
Ensure efficient management of OTAs and GDS.		 Dependency on third-party distribution platforms.
Potential conflicts with existing contracts.
Risk of channel management complexities.		 Diversified distribution and revenue sources.
Improved online visibility and bookings.
Better control over distribution channels.

What Are the Benefits of Hiring a Revenue Management Consulting Firm?

Below you will find 5 advantages to acquiring a revenue management consulting firm.

Benefit From Expertise

One of the biggest reasons hotel owners enlist a revenue management consultant is their ability to benefit from the consultant’s expertise. Duetto’s survey shows that while 83.9% of hotels use revenue systems, many fail to use them to their full potential, which opens the door for consultants. After all, a consultant will have in-depth knowledge of revenue management techniques, strategies, and metrics, making them better equipped than one of your employees. This is important, as a Forbes study found that 49% of today’s workforce skills will be outdated by 2025, which makes it difficult for hotel teams to keep pace with change.

Furthermore, if you turn to a revenue management consultant with experience in the hospitality industry, they will also have first-hand knowledge of the most appropriate techniques within hotels. As a result, they can rely on first-hand experience to help you with your pricing strategy or your distribution methods.

Gain Outside Perspective

Another major benefit of getting a revenue management consultant to help your business is the ability to obtain an impartial, outside perspective. This can be extremely valuable in many cases because those working internally are sometimes too connected to problems or influenced by their own biases to see things objectively.

For example, a fresh pair of eyes may find it easier to spot issues with your room rates or with your distribution strategy. They may also be able to bring in-depth knowledge about what has worked for other hotels of a similar size or in a similar location, helping your hotel to improve revenue generation and occupancy rates.

Revenue Management Consulting - Gain Outside Perspective

Cost Efficiency and ROI

While hiring a consultant involves upfront costs, the return on investment (ROI) is often high due to enhanced pricing, higher occupancy, and better channel performance. Unlike hiring a full-time revenue manager, which comes with salaries, benefits, and training, consultants offer scalable, on-demand expertise. This makes them ideal for independent hotels, boutique properties, and owners managing multiple assets. According to Hotel Tech Report’s analysis, hotels that hire revenue management consultants typically see a 2-7% increase in profit margins within just 12 months. That is a return on investment of 200-350%.

Consultants also prevent costly mistakes, such as over-reliance on OTAs or misaligned group rates, which can erode profit margins. RoomPriceGenie’s study of 567 properties across nine countries revealed that hotels using their automated revenue management system experienced an average revenue increase of 19%. The survey shows the transformative power of professional revenue management approaches.

Data-Driven Decision Making

In 2025, gut-feel pricing decisions are no longer viable. Consultants help hoteliers transition to fully data-driven revenue strategies, using forecasting models, BI dashboards, and analytics tools. A Cornell Hospitality Research Brief found that data-driven pricing improves ADR by up to 11.8% compared to manual pricing.

Consultants build customized dashboards that consolidate data from PMS, RMS, CRS, and third-party sources like STR and Google Trends. This provides real-time insight into pickup, booking windows, channel performance, and forecast accuracy. Hotel industry research shows that hoteliers see technology as driving the best ROI over the next five years, with three out of four hoteliers wanting to see more AI used in hospitality.

Moreover, consultants guide hotels on how to interpret data, not just collect it. They set up SOPs for revenue meetings, build KPI scorecards, and ensure the entire commercial team understands the numbers. The result? Confident decisions, fewer errors, and stronger financial performance driven by facts over intuition.

As Miri Vasilevsky-Pinto, VP of Global Hotel Asset Management for CBRE, notes:

“Technology and data lead us to maximum profitability by providing personalized experiences that captivate guests across every part of the journey, no matter the price point.”

Reduce Staffing Costs

Lastly, a major plus point of outsourcing revenue management to a consultant is saving money. While a consultant will charge a fee for the work they do with your business, this is likely to be substantially less than paying a full-time employee to do the same role, even just in terms of wages.

Once you add on other costs associated with an employee, such as benefits and investments in the technology they need, outsourcing responsibility can become significantly more cost-effective. In addition, a consultant will already have the relevant knowledge, and your hotel will not be responsible for training them.

Revenue management consulting - Which Services Does a Revenue Management Consulting Firm Offer

Which Services Does a Revenue Management Consulting Firm Offer?

A revenue management consulting firm can offer various services that can help optimize financial results. You will find more details about some of these services below:

Strategies for Growth

One of the most common reasons hotel owners turn to revenue management consulting experts is to facilitate growth. In many cases, hotel management teams have clear objectives but may require external expertise to come up with the strategies that deliver these goals. McKinsey & Company reports that companies using strong personalization strategies earn 40% more revenue.

For example, consultants may be able to help hotels implement new or innovative services, such as the use of smart hotel technology or the adoption of a hotel app. It is often the case that external voices can think outside the box more easily, as they are not blinded by how things are already done.

Prosper Hotels’ case study shows how growth strategies can work in real life. One of their clients reached a 10% increase in revenue compared to the previous year by following their advice. The hotel also held the #1 spot in the RevPAR Index for five months in a row. On top of that, they saw a 64% increase in advertising revenue year over year. Altogether, these efforts brought in $330,000 in extra revenue and delivered a 17:1 return on their advertising spend.

Preparation Services

Another area where revenue management consulting firms can be invaluable is pre-opening or preparation services. Before a hotel is opened or reopened after an extended closure, several things need to be taken care of, all of which can impact long-term financial results.

STR’s analysis of U.S. hotel P&L data shows that understanding the relationship between revenue and profit is crucial during the preparation phases, as any revenue growth or decline causes gross operating profit (GOP) to move 1.5 to 2.0 times more.

For instance, a revenue management consultant can assist with budget creation and pre-opening marketing and positioning activities. Their expertise can be invaluable in ensuring your hotel meets all of the required standards, and they may also be able to assist with recruitment activities.

Streamlining Operations

Hotels must use the right processes and operations strategies to maximize revenue and profit. A crucial part of this, which a revenue management consulting firm will be able to assist with, is streamlining these operations, reducing the amount of wasted time and/or expense along the way. According to Duetto’s survey, about 30% of hotel teams now spend most of their time on strategic revenue work. This is only possible when manual tasks are reduced.

For example, it might be that your hotel has some unnecessary stages within its booking or distribution processes, costing you more than they are generating. Consultants can use their expertise to identify these areas and then help you make more effective use of your resources.

Offering Short-Term Cover

At various points in time, it may be necessary to obtain short-term cover for roles crucial to your hotel’s day-to-day running. After all, when it comes to optimizing revenue, achieving consistency and ensuring things run smoothly is imperative, regardless of what else is happening in your hotel.

There are many situations where this may be necessary, such as in the early stages, when staff skills are still being developed, or when entire teams require training to understand new technology or operations. Fortunately, many revenue management consulting teams can provide precisely the cover you need.

Expertise and Support

Hotel owners can also seek more specialist support from revenue management consulting firms, allowing for expert assistance to be obtained when it is most needed. The kind of support that can be provided is varied but includes full-scale reviews of hotel strategy and in-depth analysis of current financial performance. Research by Professor Sheryl Kimes at Cornell University shows that while revenue management is becoming more strategic, many hotels still lack advanced skills, with over 60% of respondents indicating a need for deeper expertise.

One of the major advantages of enlisting the help of revenue management consulting experts is that they can get straight to the job without needing to be trained first. Unlike most hotels, a high-quality revenue management consulting firm will also have access to the latest techniques, technology, and wider industry data.

Revenue Management Consulting - Expertise and Support

Workforce Development

Arguably, the single biggest benefit of seeking assistance from a revenue management consulting firm is the ability to involve them in employee training and development efforts. Indeed, consultants can often provide specialized training based on the latest insights, software applications, and technology.

According to Springboard’s analysis, 70% of business leaders say skills gaps limit growth, and 87% face talent shortages, with hospitality being heavily affected. 63% of leaders list upskilling as their top priority, and 43% plan to invest in reskilling, which makes expert training more important than ever.

This can also be extremely valuable for teaching existing staff members some of the skills and techniques used by revenue management consultants, so the in-house revenue management team is equipped for the role.

Repositioning Strategy

Finally, a revenue management consulting firm can also help with repositioning or rebranding strategies, helping hotel owners change how a property is marketed. This can be essential if a hotel changes ownership, moves from independent to part of a chain, or vice versa.

According to CBRE’s analysis, only 30% of hotel brands achieved above-average RevPAR growth in the past five years, compared to 52% in earlier years. This shows how important the right market position has become. Their research also found that top-performing brands outperformed others by up to 79%, which can translate into as much as 160% more profit.

Upper‑midscale hotels performed best, thanks to perks like free breakfast and strong brand recognition. Consultants help hotels identify similar advantages and reposition themselves to attract more profitable guests.

Distribution and Channel Strategy

In 2025, having a clear distribution strategy is very important for hotel profits. Revenue management consultants help hotels manage many channels, such as online travel agencies (OTAs), global distribution systems (GDS), metasearch sites, and direct booking platforms. They make sure hotels reach enough customers while keeping costs low.

According to Phocuswright, OTAs account for about 52% of hotel sales. Hotels can save 15–25% on each booking when guests book directly instead of through OTAs, which often take 15–30% in commission. Skift Research predicts that by 2030, direct digital bookings will bring in over $400 billion, compared to $333 billion from OTAs. Consultants guide hotels to improve this and boost profit per booking.

Pricing and Segmentation Optimization

Pricing and segmentation optimization is one of the most valuable services revenue consultants provide. Instead of using broad seasonal rates, consultants use dynamic pricing based on demand, booking timing, competitor actions, and guest type. This helps hotels charge the right price to the right guest at the right moment.

According to business data analytics, dynamic pricing can increase hotel revenue by up to 8% per year when hotels understand booking patterns and adjust rates for each segment. McKinsey & Company reports that companies using strong personalization strategies earn 40% more revenue, showing how powerful segmentation can be.

Modern hotels often manage over 18 guest segments, compared to only 4 two decades ago. Revenue consultants also fine-tune policies like cancellations or minimum stays and use tools like OTA Insight or RateGain to monitor rates and ensure pricing stays competitive across all channels.

revenue management consulting - When Should You Consider Hiring a Revenue Management Consultant

When Should You Consider Hiring a Revenue Management Consultant?

Knowing the right time to bring in revenue management consulting expertise can change your hotel’s performance and unlock untapped profit opportunities.

  • Low RevPAR Signals Trouble: Consistently declining RevPAR compared to market benchmarks suggests it is time for a revenue management consultant to review pricing strategies and uncover hidden revenue gaps.
  •  Occupancy Drops Despite Demand: If occupancy rates fall even when market demand is strong, a consultant can refine forecasting models and improve your hotel’s distribution mix.
  • Inefficient Pricing Practices: Outdated or rigid pricing structures prevent you from responding to real-time market shifts; a consultant applies dynamic strategies to optimize revenue daily.
  • Poor Channel Performance: Underperforming OTA or direct booking channels indicate missed opportunities; consultants analyze data, renegotiate contracts, and boost channel profitability.
  • Lack of Internal Expertise: Frequent staff turnover or no specialized revenue team often leads to missed opportunities; consultants provide consistent strategy and expert decision-making.
  • Rebranding or Market Expansion: During transitions like rebranding, opening new properties, or entering competitive markets, consultants guide positioning and pricing to maximize long-term gains.

Global Outlook for Hotel Revenue Management Consulting (2025–2035)

Over the next decade, revenue management consulting is set to become a cornerstone of hotel profitability worldwide. CBRE’s Global Hotel Outlook predicts steady RevPAR growth of 2% in the US and stronger results in Asia Pacific, but the real change is in how hotels manage revenue.

The consulting market is growing fast, with AI consulting alone expected to reach $73.01 billion by 2033, with a 26.49% annual growth rate. McKinsey research shows hotels using AI see 17% more revenue and a 10% rise in occupancy. Moreover, McKinsey also reports that 40% of its projects are now AI-related, showing how consulting itself is evolving.

The narrative becomes even more compelling when examining the skills transformation occurring within revenue management. In the past, consultants who once relied on historical data and periodic adjustments now face what industry experts call “the AI revolution bridge,” as success depends on filling skills gaps in data science and machine learning.

This has created huge demand for hybrid consulting services that combine strategic expertise with technical implementation, positioning revenue management consulting. Meanwhile, Deloitte’s Travel and Hospitality Industry Outlook notes that more than 60% of hotel executives expect to increase outsourcing of revenue functions by 2030 to manage complexity and labor shortages.

By 2035, with AI-driven analytics becoming standard across the industry, consultants will go beyond simply guiding pricing decisions. They will shape complete commercial strategies, making their role more critical than ever for owners, investors, and operators in an increasingly data-driven marketplace.

Revenue Management Consulting FAQs

Sales managers have a smaller focus and work to increase overall sales through methods like partnerships and bookings. Meanwhile, a revenue manager works on a larger scale through all revenue streams. The intent is to optimize profitability as a whole through pricing and distribution strategies.

It provides analysis of the market and its trends, the wider demand, competitor’s pricing, inventory management, and leveraging of distribution channels to maximize revenue.

Consultants typically operate by charging either through time periods or project outcomes. However, some also offer options for work as a retainer or with structures set by performance-based fees. The revenue model of consulting covers all of these elements.

The hotel industry’s revenue management services are focused on increasing profitability. The services comprise a collection of different activities. These include demand forecasting, analysis of market conditions, development of pricing strategies, monitoring performance, and optimization of distribution channels.

Revenue managers typically need a bachelor’s in business, finance, or hospitality. Additionally, experience with hotel operations or finance is a significant advantage. Strategic and analytical skills are also quite important for revenue managers. Finally, you’ll benefit from specific training in revenue management.

A revenue management consultant can assist with this in several ways, such as by assessing various revenue streams, ensuring that marketing efforts highlight any new services that have been introduced, and helping to design distribution and pricing strategies that are in keeping with brand values and core objectives.

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.