revenue management changing organizational structure

The evolution of the revenue management industry has been one of 2016’s top trending topics. As the industry propels forward with better insights and more informed strategic opportunities, there’s also been a marked shift in how the role of revenue management is positioned within the organizational structure of a hotel.

RM there hasn’t been a shortage of organizational changes within the revenue management and hospitality industry.

What does the organizational structure look like now and where is it headed in the future? Here are a couple of notable organizational changes in revenue management worth taking a closer look at:

Revenue Management + Sales & Marketing

One of the largest organizational structure shifts to date can be observed by evaluating the relationship between RM and the sales and marketing departments.

While the RM department may have found themselves reporting to sales and marketing in the past, they may now find themselves reporting to the hotel’s general manager or chief operating officer instead.

This organizational shift is actually quite telling in how the hotel industry has strongly embraced the practice of RM for not only boosting bottom line profits, but for encouraging its revenue culture to permeate throughout the entire organization.

How else has the relationship between RM and the sales and marketing team been changing?

Many organizations have also been experiencing a role reversal between the two departments. Rather than revenue managers reporting into the sales and marketing department (which has historically been the case), the sales and marketing organization is now seeing their reporting structure shift under the umbrella of the RM department.

The sales organization itself has also been experiencing its own evolution over the recent years – and it has been interesting to observe the changing role of the hotel sales manager and sales team.

With the complexity of distribution and digital marketing commanding a larger precedence than before, hotels are beginning to see their revenue and digital teams growing and their traditional sales teams starting to shrink.

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