▷ REVENUE MANAGER: What is it and what is its function

What is a Revenue Manager?

Revenue Manager or Income Manager, has always been considered the least understood part of the operations of an independent property, although currently it is the tourist ecommerce

Hotel owners accept that proper revenue management strategies can boost occupancy, but they don't always consider a specific job title crucial. Revenue Manager, since they usually save costs in personnel with a Controller and a Financial Manager.

Revenue management is an extremely important concept within the hospitality industry ...

This allows hotel owners to anticipate demand and optimize availability and prices, in order to achieve the best possible financial results, and this is the specialty of a Revenue Manager.

Here we will answer the question: Why is the Revenue Manager position important? and What is Income Management in a hotel or company?

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Revenue Manager Translation

The meaning of Revenue Manager in Spanish, it is defined as the Income manager

In the context of hospitality, broadly encompasses the processes of knowing:

“Sell the indicated room, to the indicated guest, at the indicated moment, for the indicated price, through the indicated means of distribution, with the best cost efficiency".

The Meaning of Revenue Manager

It involves the use of data and performance analytics, which serve to help hotel owners more accurately predict demand and other consumer behavior.

This, in turn, enables more sensible pricing and distribution decisions to be made in order to maximize revenue and thus profits.

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Functions of a Revenue Manager

Has the ability to create Cost or Price Strategies, depending on the season scheduling
Analysis of the relationship between location and seasons. Prices will depend on the location of the hotel to specify costs such as HIGH AND LOW season,
You must analyze the prices of the competition and be within the market so that the influx of guests does not decrease, regardless of the seasons
You will constantly develop business strategies according to current advertising and promotional trends

Prediction is the Fundamental Skill of this Position….

The Financial Projections are an essential part, since it requires knowing in detail the expenses and income of your hotel for the day.

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Revenue Manager Job Description

In general, in this job, you will have responsibilities such as:

Respond to the General Manager who will be your immediate boss according to the organization chart
You will be under the supervision of the Controller or Finance Manager
Supervise, Direct and Control everything related to HOTEL RESERVATIONS

You will work alongside the Sales and Marketing area in controlling budgets, income and expenses
Public Relations will be necessary for the implementation of strategies and formulas
Realization of organizational plans for promotions or advertising
Responsible for supervising the standards in the hotel, both for furniture and staff

Control and analysis of departmental costs so that they do not go out of the established budget
Preparation of strategic plans, marketing plans and projection of goals
Analysis of discounts, promotions, sales
Report of fees for audits and review of profit control

Dynamism and Adaptation to the Market as Revenue Manager ...

As a concept, revenue management actually started in the airline industry (revenue manager airline). It is here that companies found ways to anticipate consumer demand in order to introduce a dynamic pricing system.

However, it is applicable in any industry where different customers are willing to pay different prices for the same product.

Where there is only a certain amount of that product to be sold, and where that product must be sold before a certain point in time.

To effectively manage revenue, a business must also have some way of forecasting consumer demand and spending habits so that well-informed adjustments can be made.

For example, hotels can use past data, existing reservations, weather forecasts, and other industry data to inform their revenue management strategy.

Revenue Manager SALARY…?

The approximate salary of a Revenue Manager or Revenue Manager varies between 1,000 to 10,000 dollars per month depending on the hotel or airlines and especially the training, since there are very complete revenue management courses and others not so much

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Why is Revenue Manager Important?

For hotel owners, hotel revenue management provides the ability to make the most of a perishable inventory of hotel rooms.

This allows them to maximize the amount of money the business generates.

Essentially, it enables decision-makers to be informed and data-driven, rather than relying on instincts or guesswork.

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Hotels, like many other businesses, have fixed costs, which must be paid no matter how many rooms are sold and no matter how much money is generated from guests.

Therefore, through a revenue management strategy, hotel owners can ensure that their costs are met and their prices and services are dynamically optimized.

Revenue Management at the Hotel

Revenue Management Helps Hotels Reduce Costs

Booking trends today depend on a number of factors such as the region's economy, season, average age of travelers, etc. As a result, the best rate to sell the room today may be very different from the optimal rate tomorrow.

Having a revenue management strategy doesn't just help you determine the best rate to sell your rooms.

But it also allows the hotel to plan ahead by optimizing workforce for peak periods and avoiding overstaffing during peak periods.

By better managing resources as needed, properties can get the most out of their resources and reduce costs by avoiding unnecessary expenses.

Revenue Manager: Attracting the Ideal Guest

Not all business a hotel receives can be called “good business”.

Although it is important to ensure maximum occupancy, repeat customers are much more lucrative than new ones, as it costs more to reach new guests each time.

A complete hotel does not always have to be profitable. Poor revenue management such as selling rooms too cheaply or paying hefty commissions can cause hotels to lose money.

This can happen even during maximum occupancy.

Automated revenue managers help hotels better identify the right customers who can provide the most long-term value for the property's future.

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To identify these customers, hotels need to assess all guest spending activities and not just room data.

Restaurant, bar, and gift shop expenses can be one example, and these in turn can help properties get a better idea of guests' preferred activities and their overall value.

Hotels can also use this data to make a better decision regarding promotions and marketing campaigns.

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Revenue Management Improves the Brand according to Revenue Managers ...

The proper utilization of revenue management strategies can play an important role in increasing a hotel's bottom line.

A better price not only improves the occupancy of the property, but also ensures that the hotel is selling all of its rooms at the highest possible price and generating the most it can at the time.

Whereas data collection and reporting were time-consuming tasks that hoteliers had to perform to obtain the necessary data.

Today's revenue management can be easily implemented with advanced, automated software on the cloud platform.

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The Revenue Manager is a Critical Piece in the Sustainability of a Hotel.

This helps in attracting the best guests, at the best times of the year and charging the highest possible room prices.

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REVENUE MANAGER What is it and what is its function?