Before embarking on a career within the field of revenue management, it can be useful to read a comprehensive revenue manager job description. After all, it is a position that has a lot of different responsibilities connected to it, and it is also important to get a sense of the kind of skills, qualities and qualifications that are required. In this article, you will find a description of what revenue management entails and why it is so important for hotels.

Quick menu:

What is Revenue Management?

Revenue management can be described as a process where data and analytics are used to more accurately anticipate future levels of demand. This then enables hotels to adjust their pricing and distribution strategies accordingly, in order to maximise the amount of revenue generated by the property at any given time.

A good way to think of this is as follows: revenue management in a hotel in the process of selling the right room, to the right customer, at the right time, for the right price, via the right distribution channel, with the best cost efficiency.

Read the “What is Revenue Management?” article to learn more.

Revenue Manager Job Description: Introduction

The job of a revenue manager involves a combination of analysis, strategic decision-making, and close collaboration with senior business leaders. Ultimately, the goal for a revenue manager is to assist their employer in optimising financial results by anticipating demand and using that information to maximise revenue generation.

Within the hotel industry, this means adopting a strategic approach to the pricing and distribution of hotel rooms, and optimising the sale of other products and services, so that the hotel generates as much money as possible.

Revenue Manager Job Description: Qualifications & Education

A revenue manager job description will typically reference requirements including a high level of computer literacy and knowledge of hotel technology, including revenue management systems, global distribution systems, channel managers, property management systems and other similar systems and solutions.

In terms of formal education, requirements can vary, but it is common for hotels to expect a bachelor’s degree in a relevant subject, such as revenue management, hotel management, economics, or a discipline with a focus on data analysis. You will also usually require previous experience of working in a hotel or another similar setting.

Revenue Manager Job Description: Responsibilities & Duties

The main responsibilities and duties that are outlined in most revenue manager job descriptions are: carrying out both short and long-term forecasting of levels of customer demand, using all available data, and then analysing this data, in order to oversee strategic pricing and distribution-related decisions.

Part of this process will involve the continuous monitoring of the various distribution channels used by the hotel, in order to ensure ongoing marketing efforts, room availability information and pricing support the current strategy. This will usually involve the use of property management and channel management systems.

The role may also require the production of written reports, outlining anticipated financial performance and the expected outcomes from various strategic decisions. Continuous evaluation of the effectiveness of current pricing, marketing and distribution strategies will also be needed, complete with regular meetings with hotel leaders.

It will be essential to track various performance metrics related to hotel occupancy and revenue generation over time. When adjustments are needed to improve performance, you may be required to either implement those changes, or explain to departmental leaders why those changes need to be made. As a result, a key part of the job involves collaborating with other senior employees in the hotel and working together to achieve shared business objectives.

Revenue Manager Job Description: Skills

Aside from qualifications and education, there are some core skills that are needed if you are going to become a revenue manager for a hotel. First and foremost, you will require excellent written and verbal communication skills, along with interpersonal skills, because collaboration is one of the key parts of the job.

Computer literacy is a must and you will need to have experience working with spreadsheets, word processors and presentation software. Furthermore, the ability to work with statistics and carry out statistical analysis is fundamental, and you will also need to possess a strong work ethic, along with the ability to make decisions under pressure.

Revenue Manager Job Description: Salary

It is important to understand that the salary for a revenue manager can depend on a whole range of different factors, including the size of the hotel, the location, your own level of experience, the extent of the responsibilities outlined in the revenue manager job description and your qualifications in relation to other hotel management staff.

To provide a basic idea, hotel revenue managers in the United Kingdom tend to start on a salary of around £30,000 to £40,000. The average salary for the role is £42,000 and experienced revenue managers at large hotels may make upwards of £50,000. In the United States, the salary range is generally between $50,000 and $100,000.

Revenue Manager Job Description: Place Within an Organisation

As a revenue manager, your place within an organisation will also depend on the size of the hotel and on some other factors. As a general rule, within a small or mid-size hotel, you will take on responsibility for revenue management at that hotel alone, and you will report directly to the hotel’s general manager.

If you work in a chain, you may be responsible for revenue management at one hotel, or up to five hotels, and you may also have to manage revenue coordinators. Generally, you will then report to either the regional revenue manager, or the director of revenue management, rather than reporting to a single hotel general manager.

Video: HSMAI – Revenue Management as a Career Path in Hospitality

In a hotel, find out what the Revenue Manager’s role is. Together, HSMAI Asia Pacific and the Hospitality Business School at the Singapore Institute of Technology have produced a film outlining the role of the Revenue Department in hotels.

 

Revenue Management Courses: Information + List of Educators

A key part of becoming a revenue manager is obtaining the right level of education. If you read a revenue manager job description and specification, it may reference the need for you to have completed a revenue management course. Fortunately, a number of organisations offer these courses, including Ecornell, the International Hotel School, and EHL.

Read “Hotel Revenue Management Courses: Information + List of Educators” to learn more about what hotel revenue management courses are, what you will learn and how they can help your career. In addition, you will also be able to access a list of some of the main organisations and educators that actually deliver these courses.

Discover the Latest Revenue Management Trends

It is also important to keep up with the latest revenue management trends. In particular, this means staying up-to-date with the latest technology, understanding modern data and analytics trends, and adopting the latest strategies. Failing to keep up with how the role is evolving can put your hotel at a significant competitive disadvantage.

Check out “Revenue Management Trends: Discover the Latest Developments” and you will be able to read a more comprehensive list of the latest trends and the various ways you can ensure you stay ahead of the game.

Essential Revenue Management Strategies for Revenue Managers

In order to achieve success in the role, you need to go beyond what is written in the revenue manager job description. This means adopting specific strategies and making use of the tricks of the trade. Examples of this include market segmentation, price optimisation, search engine and mobile optimisation, and encouraging direct bookings.

You can find out about each of these strategies and many more, complete with explanations of what they mean and why they are beneficial, by reading “Revenue Management Strategies to Grow Your Hotel Business”.

Revenue Management Blog for Revenue Managers

Revenue management is one of the most crucial disciplines for achieving success in the hotel industry. However, it is also a complicated area, which requires a combination of technical skills, significant experience, and a willingness to adapt as the nature of the role shifts, or as new trends emerge within the wider industry.

Visit “Revenue Management Tips for the Hotel & Hospitality Industry” and you will be able to access a range of blog posts covering the topic of revenue management and some of the main associated concepts.

It is essential to read a revenue manager job description prior to exploring options in this field, because it is a career path that requires specific skills, attributes and qualifications. However, it is also a highly rewarding career path, where you will be able to make a tangible difference to the long-term success of a hotel.

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

Submit an Article