A typical revenue manager performs the below operations at a hotel to keep the property afloat online and offline. And we, with our expert team and knowledge work on these and several other tasks; having an edge over the in-house revenue manager. Further, the core duties of a revenue manager includes property visibility, competitor analysis, forecasting, pricing, yield management, inventory management, marketing, market analysis and distribution channel management.
Forecasting is based on data and segmentation, which are the main pillars of revenue management. Predicting a customer’s behaviour enables them to optimize revenue. The primary intelligence is derived from historical data on occupancy, room rates, previous revenue, booking trends, seasons, customer segments and the current data of customer’s activity.
A major role of the revenue manager is to determine and set competitive room rates to stay in the limelight and earn higher revenue. This also includes creating promotional campaigns to generate business, tracking customer trends and reservations, and communicating with sales teams to gather sales figures. Further, they also forecast future demands and pricing trends.
A revenue manager regularly fetches various sets of reports to monitor the business performance. These reports help them to analyse the booking patterns from a raw datasheet to make effective pricing decisions.
The goal of any marketing activity is to increase the volume of sales. And, revenue managers use tools that allow a property to sell all the inventory by keeping customer flow steady and attracting new guests. This includes activities such as promotions, discounts, and loyalty programs.
Channels are often closely tied to the customer segments that use them. Depending on the product type, a revenue manager chooses a channel and sets prices for a particular segment of the target audience.
Revenue managers perform compset analysis on a regular basis to determine the competitiveness and price benchmarking, which is often done through SWOT analysis. They further revamp the compset periodically in order to keep relevant benchmarks.
Revenue managers constantly track and compare revenue received from different sources to set relevant budgets. They further provide reports of the financial performance to determine and overcome any shortcomings. Based on these they also come up with new ways to improve ADR and RevPAR of the property.
Revenue managers often get in touch with new OTAs and metasearch as and when necessary to determine new distribution streams and mutually beneficial growth programs.