hotel revenue manager

Like many other businesses, success in the hospitality industry requires careful management of revenues. However, some hotel owners think that hiring a hotel revenue manager is not needed as doing so is expensive, and that they can sell their rooms well on their own as long as they have aesthetically pleasing photos, a good marketing strategy, and good services. 

While these are true, hotels will not be able to maximize their revenues without revenue management for the hospitality industry. And to make the most of it, a specialist’s knowledge is required. Hence, you need a hotel revenue manager to help you. 

In this article, you will learn what hospitality revenue management is and why you need a hotel revenue manager in order for your business to succeed.

What’s inside this blog?

What is Revenue Management in Hotel Industry and Its Importance

Revenue Management means selling the right room, to the right customer, at the right time, for the right price, through the right distribution channel, with the best cost efficiency. This allows decision-makers to make informed, data-driven choices, rather than relying on instincts.

Must-read: Revenue Management System: A Complete Guide on How to Leverage RMS for Maximizing Revenues

Hotels have fixed costs that need to be paid regardless of how many rooms are sold and regardless of how much money is generated from guests. Through a well-thought out strategy for revenue management in hotel industry, you can ensure your costs are met and your prices and services are dynamically optimized.

Why Hoteliers Need a Hotel Revenue Manager

Although hotels can manage the revenues on their own, it’s much more complicated than that as there are a lot of factors to be considered. How much should they increase and for how long? Should they revert it back after certain conditions are achieved? 

You must also consider the competitor analysis, demand trends, events in the area, pick-up for the last couple of days, visibility on Online Travel Agencies (OTAs), and many more. The questions and challenges will keep on coming that could be too much to handle for a person. So, without some revenue management and the help of a revenue manager in a hotel, you will never be able to maximize your revenue.

How a Hotel Revenue Manager Will Help You Increase Revenue

The role of a revenue manager in the hotel is to ensure that companies maximize the funds generated by the sale of their rooms and services. Managers’ duties also include but are not limited to proper accounting of revenues, analyzing financial and business operations data to estimate future revenues, and preparing financial reports.

Is Hiring a Hotel Revenue Manager Costly?

The short answer is, yes. A good revenue manager might be expensive. But with the advent of technology, hoteliers now have a more affordable option to do revenue management for your hotel like hotel revenue management systems like the ZEN eManager Express. Incorporating artificial intelligence and big data analysis, ZEN eManager Express ensures that prices are always optimal for your hotel, and revenue is maximized.

ZEN eManager Express features intelligent pricing, real-time automated updates, and in-depth analytics for performance review backed by artificial intelligence. With this, you can reduce your manpower cost while getting the best prices worry-free. By using a powerful tool like ZEN eManager Express, you can get precise data while saving time, and it gives you a more accurate result, helping you increase your hotel revenues.

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Frequently Asked Questions About Hotel Revenue Managers

Q: What is Revenue Management?
A: Selling the right room, to the right client, at the right moment, for the right price, through the right distribution channel, with the best cost efficiency. It involves the use of performance data and analytics, which serve to help hotel owners to more accurately predict demand and other consumer behaviors. This, in turn, allows them to make more sensible decisions regarding pricing and distribution, in order to maximize revenue and, therefore, profit.

Q: Does my hotel need a revenue manager?
A: Yes! A Revenue Manager provides hotels with confidence in innovation, data, predictive analytics, group management, online reputation data, remote accessibility, and support to deliver the most optimal decisions.

Q: What happens if I price the hotel myself without a revenue manager?
A: Sooner or later, you will realize that revenue management is not an easy job. As an owner, you should focus more on the whole operations of your hotel, its marketing strategy, and your employees. Therefore, having a dedicated revenue manager is definitely a need for any hotels.

Q: How can I have a good revenue manager with a low cost?
A: A good revenue manager is never cheap. However, ZEN eManager Express has arrived to deliver data-backed analysis to optimize your pricing in order to maximize your revenue. With years of experience managing hotels across the region, ZEN Rooms has developed a smart pricing technology that ensures your hotel is priced competitively in the market.

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