Set room rates to help a hotel make high profits.
What does a Revenue Manager do?
At hotels, the customer is king. From the Bellhops and the Maids to the Front Desk Manager and the Concierge, everyone is there to serve the guest. At least one employee, however, is there to serve the business, instead.
As the Revenue Manager, you’re that employee. A common role within the hospitality industry – and at lodging properties, in particular – your job as a Revenue Manager is managing money. Because you work at a hotel, however, it’s also managing rooms.
In fact, hotels make most of their money by renting accommodations to guests, which means your primary job is analyzing and setting room rates. To do that, the Revenue Manager will need to research other hotels of similar size, market and service level; consult supply-and-demand data points, which tell you what your hotel usually charges and how many rooms it typically fills; and monitor real-time information about reservations and room sales. Based on that data, you set prices in order to maximize both occupancy and revenue.
In that sense, you’re part Accountant, part Juggler. If rates are too high, for instance, you will rent fewer rooms. If they’re too low, however, you will make less money. Your goal, therefore, is to find the magic number that will allow you to fill every room at the highest price possible.
Because rates impact the bottom line so strongly, you also produce financial reports and forecasts for hotel management, collaborate on how to market rooms and decide when to discount inventory. Essentially: You hold the key to your hotel’s performance – or, rather, the electronic key card.