The evolution of the revenue management industry has been one of 2016’s top trending topics.
From the onslaught of big data opportunities to the drastic improvements in the life of the revenue manager, the benefits of revenue management practices and its sophisticated technology have been far-reaching in leaving virtually no stone unturned.
However, advanced technology has been accommodating far more in this industry’s evolution than high consumptions of complex data and the bolstering of on-the-job productivity.
As the industry continues to propel forward with better insights and more informed strategic opportunities, we’ve also seen a distinctly marked shift in how the role of RM is positioned within the organizational make-up of hotel(s) and hotel companies.
Looking closely at the revenue management industry’s past organizational structure, it’s clear to see that RM roles within a hotel’s ranks have evolved significantly over the years. From departmental role reversals to critical new job functions to how technology can supplement hotels with limited head counts, there has been no shortage of organizational changes within RM.
So what exactly does the organizational structure look like now, where is it headed in the future and what are the opportunities for hoteliers to use the industry’s technology and resources to fill their organizational gaps?
Revenue Roles Through the Looking Glass
Revenue Management and Sales & Marketing
One of the largest organizational structure shifts to date can be observed by evaluating the dynamic relationship between the revenue management and the sales and marketing departments.
While the RM department may have directly reported to sales and marketing in the past, they may now find themselves reporting to the hotel’s general manager or a hotel companies chief operating officer instead.
This organizational shift can be considered quite telling in terms of how the hospitality industry has strongly embraced the practice of revenue management for not only boosting bottom line profits, but for encouraging RM culture to permeate throughout the entire organization.