“Will I even be needed in the future if AI can take over everything?” This question is increasingly on the minds of Revenue Managers as they are confronted with the latest advancements in revenue management technology.
NB: This is an article from Hotellistat, one of our Expert Partners
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Adding to this uncertainty, studies like those from the McKinsey Global Institute predict that up to 3 million job transitions could occur in Germany by 2030*. However, instead of signaling the end of the profession, we see an exciting transformation underway: the role of the Revenue Manager is evolving.
This blog explores the current responsibilities and future developments of this role, providing insights into its ongoing evolution as well as the opportunities and challenges faced by Revenue Managers in the hospitality industry.
The Professional Development of the Revenue Manager
Over the past 40 years, the answer to “What does a Hotel Revenue Manager do?” has remained largely unchanged: optimizing room inventory to maximize a hotel’s revenue and profitability. This was primarily achieved through setting room rates, managing inventory, and optimizing booking channels. Often, Revenue Managers develop deep expertise about the market, the hotel, and guest needs over many years. While optimizing room inventory remains the core of the job, the role and responsibilities of a Hotel Revenue Manager have shifted in recent years.
These changes have been subtle, a natural evolution. But looking to the future, the profession, like many in the hospitality industry, faces a revolution. With advancing technology, new guest behaviors, and growing uncertainties, the way revenue professionals work has fundamentally changed. Fixed rates and reservation books were gradually replaced by dynamic pricing systems, Excel spreadsheets were supplemented by rate-shopping tools, and revenue generation has expanded beyond room sales. In addition, more and more revenue streams have emerged, requiring optimization beyond just room revenue.
Today, a Revenue Manager manages not only rooms but also a diverse range of products and services, many of which cater not only to hotel guests but also to the broader community. From parking spaces and coworking areas to event venues, food & beverage offerings, and wellness and spa areas, hotel revenue management now covers a wide array of sectors.
Opportunities and Challenges of Today
While in the past, seasonal pricing was set once or twice a year, in some markets, prices are now adjusted by the minute, a speed beyond human capability. The manual collection and analysis of relevant data consumes so much time that it often becomes outdated by the time pricing decisions are made, significantly increasing the risk of revenue losses due to poor decisions. AI systems can already handle many of the tasks that Revenue Managers perform.
