With hotel occupancies continuing to hover near record highs, many operators have had to creatively work to drive rates and accompanying profits, increasingly relying on revenue managers to lead the way.
Thus over time, the importance and hierarchical standing of revenue-management professionals has grown, from being just one part of a larger sales and marketing team, into a discipline—and sometimes a department—all its own.
These days, revenue managers are often the ones who dictate rates and policy to sales and marketing teams, reversing a historical industry framework. Compensation for skilled revenue managers continues to climb, and more than ever, these professionals have a clear path up through the company ranks, even as high as the C suite.
“Revenue management has found its place in the sun these days, and we’ve definitely got the attention of everybody in the organization,” said Lori Kiel, chief revenue and marketing officer for the Kessler Collection. “It shows the understanding that we’re the ones with the analytics; we’re the ones who do the research. We know the whys, and we know the history. There is a lot that a revenue manager can now bring to the table, and there’s a reason they need to be at that table at every level.”
On the surface, experts say the best revenue managers today have strong analytical skills and thorough knowledge of the brands and markets they’ll be working in, as well as the computer systems they’ll be using, but there’s also more to it than that. The role is becoming increasingly collaborative as its prominence grows, so inter-departmental communication is also essential, as is the ability to take educated, calculated risks in the hunt for greater financial rewards.
“They’re no longer just number-crunching analysts that live in a very black and white environment. There are no right or wrong answers,” said Cory Chambers, VP and chief revenue officer for Hospitality Ventures Management Group (HVMG). “The best ones are calculated risk-takers. They understand the upside and downside of risk, and they’re willing to try new things and innovative approaches to pricing, packaging or how we manage our top accounts and segments. They’re able to teach those complex ideas to the sales team and GMs and asset managers with a very constructive, interpersonal approach. The most skilled revenue managers are also great teachers.”
Two teams, one mission
In the past, revenue managers often were considered part of the sales and marketing team at a hotel or larger hotel company, and would likely report to a director of sales and marketing. That’s all changed in many organizations, as the importance of RMs has increased.
