Revenue Manager Job Description
Developing pricing strategies and forecasting revenue for hotels and other lodging establishments are the main activities of a Revenue Manager. Revenue Managers work closely with sales teams, reception desk employees and the hotel general manager in areas of promotion, business planning and reservation costs. They might conduct analyses of prices offered by other hotels to develop competitive prices and discounts.
Revenue Managers work primarily for hotels, motels, spas and resorts. The U.S. Bureau of Labor Statistics lists Revenue Managers under the general heading of Lodging Managers. For this group. the BLS reports that an 8 percent increase in employment opportunities can be expected between 2014 and 2024. A continued increase in travel and hotel occupancies will be major factors in this projected growth rate.
Revenue Manager Duties and Responsibilities
To accomplish their primary goal of maximizing revenue for a hotel or other establishments within the hospitality industry, Revenue Managers must complete several tasks. In reviewing several job listings and other sources for this profession, we found the following are among the core duties and responsibilities of a Revenue Manager.
Create Pricing Strategies
A major function of the Revenue Manager is to determine and set room rates and other prices in order to keep hotels competitive and earn revenue. This aspect of the job might include assisting in creating promotional campaigns in order to generate business, work with front desk personnel to track customer trends and reservations, and communicate with sales teams to gather sales figures. Revenue Managers will also forecast future demand and pricing trends.
Conduct Competition Analyses
In order to determine competitive prices to ensure increased reservations and more revenue, Revenue Managers will periodically evaluate the prices of their competition. They will also analyze economic trends to determine the demand for hotel reservations based on tourism and business travel.
Track Hotel Revenue
Revenue Managers will work with various departments within a hotel to create a budget and use accounting processes to determine the hotel’s revenue after expenditures. They will report financial information to general managers and make suggestions for increasing revenue through changes in pricing and efforts in generating more business.
Revenue Manager Skills
As expected, a Revenue Manager would need excellent analytical, communication, customer service and organizational skills in order to be effective in this position. Both written and verbal communication skills are a must, as Revenue Managers typically conduct meetings and submit reports. They should be strong team leaders who can focus a group on achieving the same goal of creating revenue for a lodging establishment. An attention to detail, above average math skills and the ability to meet deadlines are all important aspects in revenue management. In addition to these general skills, a Revenue Manager could be expected by potential employers to possess the following skills.
Core skills: Based on job listings and other sources we looked at, employers want Revenue Managers with these core skills. If you want to work as a Revenue Manager, focus on the following.
- Developing pricing strategies, including building rates for rooms and packages and determining discounts and specialty rates
- Forecasting pricing and revenue based on demand and market trends
- Evaluating trends in the economy and hospitality industry
- Creating promotional plans to increase revenue
- Understanding inventory management processes
- Generating revenue reports
Advanced skills: While most employers did not require the following skills, multiple job listings and additional sources included them as preferred. Add these to your Revenue Manager toolbox and broaden your career options.
- Ability to communicate in multiple languages
- Proficient in Microsoft Office applications
Revenue Manager Resources
The following are among the best industry resources we found that could be helpful as you continue your research of a Revenue Manager career. Both online and print resources are listed here.
On the Web
HOSPA Blog – Hosted by the Hospitality Finance, Revenue and IT Professionals (HOSPA) organization, this blog contains articles on industry news and practices relevant to Revenue Managers.
Hotelier Magazine – An online publication containing articles and features that could be of interest to Revenue Managers, such as industry trends and technological advances.
Life of a Revenue Manager – A recently revived blog offering a personal insight into the daily tasks and responsibilities of a Revenue Manager.
Hospitality Finance, Revenue and IT Professionals (HOSPA) – A professional organization providing career development and networking opportunities for Revenue Managers. Offers educational courses, industry news and a monthly magazine.
American Hotel & Lodging Association (AHLA) – Established more than 100 years ago, AHLA provides professional support and educational resources for various employees within the hospitality industry, including Revenue Managers. Its Educational Institute (AHLEI) offers certification for Revenue Managers.
Revenue Management for the Hospitality Industry, 1st Edition – Described as the “first text” of its kind, this book is a comprehensive study of the processes and techniques Revenue Managers should know to successfully manage inventory and prices and generate revenue for their establishment. Contains case studies and other examples.
Revenue Management – An extensive look at revenue management practices within several industries to show how these strategies encourage growth and increase revenue.
The Strategy and Tactics of Pricing: A Guide to Growing More Profitably, 5th Edition – Though not focused primarily on the hospitality industry, this book shows readers effective market management techniques and provides insight into pricing theory to help Revenue Managers and similar professionals build revenue.
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