3 Ways To Easily and Quickly Add Revenue Management to Any Hotel!

All around you might be hearing how important it is to add revenue management theories and practices to your hotel business. You might be considering the best routes to do this and are unsure or looking to confirm your thoughts.

Well today we’re looking to present the pros and cons to the three easiest ways to add revenue management to your hotels and what you should be looking for in each. So let’s get started!

The least expensive and potentially easiest depending on your comfort with business theory and practices as well as learning ability is: learn revenue management yourself. Depending on the size and complexity of your business it may make most sense to learn. Additionally if you hire a revenue director or revenue consultant if you have some basic knowledge it facilitates the working relationship as well as knowing the decisions being taken make sense and are productive. On the down side, revenue management isn’t an exact science and is complex. For some it may present a challenge to learn and others may take more time delaying the addition of revenue management practices to their businesses.

If you go this route you will want to find an accredited college or university teaching hospitality management, preferably in their business schools. Alternatively organizations like AHLA and HSMAI offer courses and certifications which you can learn revenue management theory and concepts.

Next easiest and inexpensive is: hire a revenue management consultant or hospitality consulting firm. These individuals and companies specialize in producing the best revenue and profits possible by utilizing the latest concepts and theories and staying connected with your marketplace. Consultants vary in experience and quality. The big pros here are they already know the field so ramp up time is minimal, just hire and go, as well as cost. A consultant may charge you $750 - $1200 per month, but like a vendor that’s it. There’s no payroll taxes, withholding, or benefits to consider so it’s much simpler than hiring an employee. The biggest negative here is quantifying quality especially if you are unfamiliar with revenue management. Some firms may release names of properties in their portfolios in which case you may contact them for a reference. Others may hold strict confidentiality. Success in other markets may also not translate to your market. 

If you go the consultant route ask questions and look for certifications. Not everyone in revenue management holds certifications. And a consultant without certification may well be an excellent choice if you ask the right questions and determine their knowledge. Any consultant with a CHRM or CRME is sure to know and understand the industry. Key things to understand are the concepts the consultant intends to apply and why, as well as what tools and strategies they will use to understand your market. 

Your next option would be to hire a revenue manager or director to your property. Hiring a revenue manager brings you the same benefits of hiring a revenue consultant, however at an additional cost. Generally speaking hiring employees is more costly for an employer than hiring a vendor or contract agency, however hiring brings the benefit of flexibility especially at the management level. Again as with consultants not all experienced revenue managers or directors are certified, exercising caution in questions will be key in determining the right fit for the property. However certified professionals should be desired as their knowledge and skills have been tested.

There you have it three easy ways of adding revenue management to any hotel. Have any questions on the best route for your property to add revenue management or maybe you have already decided a consultant is the best route for you, either way we would love to help! Click here to connect with us and discuss how we can evolve your property together.