Importance of Revenue Management in hotels

Digital Performance Management
revenue management en hoteles

revenue management in hotels

The Revenue Management in hotels contribute to increase the income of the same ones in low seasons and for it, the implication of the directors of hotel is vital.


To understand how the involvement of the directors influences the competitiveness and income of the hotel they run, here are some of the reasons why Revenue Management in hotels strategies should be paramount:

A key element to increase the profitability of a hotel is the price:
Along with inventory control. Both are the biggest drivers of a hotel’s profitability. Some current trends suggest that the use of analytical tools to discern when making price decisions is fundamental. Therefore, it is very important for hotel managers to know the importance of Revenue Management when it comes to making the most of analytics and revenue optimization.

Another advantage of using Revenue Management in hotels is the promotion of long-term growth strategies.
This brings us changes in the strategic and long-term objectives of the hotel. Here is another of the moments in which hotel managers have a driving role thanks to its strategic vision of the hotel (clients, image, positioning in the market …).

To avoid conflicts of interest with other hotel departments (sales, operations, marketing, finance) the Revenue Management and the hotel manager avoid any problem between the various teams. It is the task of the director to coordinate the teams to increase the importance of Revenue Management and ensure that the objectives of the different teams are aligned and pursue the profitability of the hotel.

One of the most difficult and important tasks of Revenue Management in hotels is to take advantage of hotel reforms and investments.
Your task is to determine the positioning of the hotel in terms of prices. All this is not only a key factor at the tactical level (selection of the best available price), but also strategic. The return of the investment is obtained from the directors dealing with the Revenue Managers the strategies and expectations regarding the investments made in the hotel. In this way the Revenue Managers can be prepared for the change, incorporating the new value proposal to the decisions of prices and inventories, allowing to maximize the income based on the new product or service.