With the rise of automation, some hotel owners and operators are asking, “Do we still need a revenue manager?”
The short answer? Absolutely.
In fact, revenue managers (or anyone tasked with revenue duties) are more important than ever.
What’s changing is the role. With a smart revenue management system (RMS) handling the heavy lifting, revenue managers have more time for strategy, analysis, and collaboration.
That’s the human side of revenue optimization that’s easily neglected if hotel staff are preoccupied by finicky manual systems or complex technology.
So how does the division of labor work in practice? Let’s break it down.
Revenue Automation: What the RMS Handles
A RoomPriceGenie-style RMS automates the time-consuming, number-crunching tasks so the revenue manager can focus on the bigger picture.
- Monitors market activity. Gathers real-time data on local demand trends and market pricing to keep you competitive.
- Calculates optimal daily prices. Adjusts your rates based on seasonality, booking pace, events, and more – for each room type, and up to several times a day.
- Implements dynamic pricing. Automatically raises rates when bookings are strong and lowers them when bookings are soft, all within boundaries you set.
- Updates rates across channels. Pushes pricing changes directly to your PMS or channel manager for distribution to your website, OTAs, and other platforms.
The RMS works 24/7, ensuring your pricing is optimized even while you sleep. That means less manual work, fewer spreadsheets, and no more guesswork. Most importantly, it allows you to enjoy your time off stress-free.
The Human Side: What the Revenue Manager Handles
With the confidence that day-to-day pricing is automated and data-driven, the revenue manager can focus on the strategic and interpersonal tasks that technology can’t replicate.
- Defines objectives and strategy. Works with marketing, sales, and the general manager to set revenue goals, outline plans, and guide revenue-generating activities.
- Oversees RMS settings. Inputs key parameters like target occupancy, competitor sets, room type offsets, minimum and maximum rates, and stay restrictions.
- Monitors performance. Reviews daily pick-up, KPIs (occupancy, ADR, RevPAR, etc.), and RMS recommendations, adjusting as needed.
- Adds human context. Brings insights the RMS can’t “see,” like local knowledge, renovations, staffing constraints, or shifts in competitor behavior.
- Manages segmentation. Identifies key target markets (corporate, group, direct, etc.) and tailors rate plans and offers for each segment.
- Oversees distribution. Maintains relationships with distributors, decides where to sell rooms and when, and manages costs of acquisition across channels.
- Collaborates with commercial teams. Works with marketing and sales on campaigns and promotions to drive bookings during need periods.
- Liaises with stakeholders. Leads revenue management meetings, analyzes data, and shares insights to keep the GM, operations team, and ownership informed and aligned.
For smaller hotels without a dedicated revenue manager, these tasks may fall to another team member or an outside consultant. For larger hotels and groups, there’s more than enough to keep a full-time revenue manager busy.
Choosing the Right RMS for the Job
Another key responsibility of the revenue manager is choosing an RMS that fits the hotel’s needs. For independent hotels and mid-market groups, a basic pricing tool may be too limited, whereas an enterprise-grade system might be too complex.
The sweet spot is a solution that’s powerful but easy to use. Ideally, your RMS should:
- Use advanced, algorithmic pricing logic (not just rules-based pricing)
- Work with any structure, whether you have a dedicated revenue manager, multitasking manager, consultant, or full revenue team
- Integrate deeply with your PMS
- Offer customer support from experienced revenue professionals
For hotel groups, look for features like centralized dashboards, multi-property reporting, and group-level pricing oversight.
Más información: 10 tips to Choose the Right Revenue Management System for Your Hotel
Even the Best Pilots Need a Navigator
Despite advances in AI and automation in recent years, the human touch still plays an integral role in revenue management. The best results come from a combination of computing power and human insight.
The revenue manager is the navigator, setting the course, making sure the whole team is on board, and steering the strategy. The RMS is the co-pilot, monitoring market conditions, crunching the numbers, and handling tactical, time-sensitive pricing decisions.
Together, they form the perfect partnership to reach your revenue goals.
Curious how the right balance of tech and human insight can boost your revenue? Pregunta a un Genie de espera!
Para saber cómo RoomPriceGenie puede ayudarle a aumentar la rentabilidad de su property, inicie su prueba gratuita de nuestra solución automatizada de fijación de precios.
