Outsourcing Hotel Revenue Management Services in 2022

What is Hotel Revenue Management & Its History?

Hotels do not always sell their rooms at the same pace. There are high tides and low tides that depend on many factors like business environment, seasons, festivals, markets, sales teams, etc.

The price of a room varies with demand and supply. Knowing the market and making decisions to increase rates and availability is crucial to gaining market share and keeping pace with the competitors.

So, what is revenue management in hotels? “Hotel Revenue Management is all about selling the right room at the right time and right price to the right customer through the right channels.”

American Airlines

American Airlines

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The origins of the revenue management concept can be traced back to the airline sector in the 1980s. Airlines started the idea of dynamic pricing to optimize finances and maximize revenue. American Airlines found great success by using price discrimination strategies and foreseeing customer demand.

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Hotel Revenue Management Services – A New Approach!

Hotel Revenue Management Services

A hotel that is packed with guests isn’t always a hotel that makes profits. Revenue defines the success of a hotel. Hotels must use revenue management services to improve their bottom line.

Hotel revenue management services are an expert’s job to boost revenue. From data analytics to complex trends, market segments, prices of hotels, statistical analysis, etc.

The full set of these services comprises managing prices and availability, average daily rate (ADR), best available rate, average length of stay, market share, and more.

Many hotel owners hire their own in-house revenue manager for Revenue Management Hotel Services but it puts a lot of load on a single person. Manually analyzing data also leads to errors and bad decisions in the long run.

Outsourcing lessens the burden of analyzing, executing, and measuring. When you outsource, a team of experts looks at the market and makes data-driven decisions.

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3 Types of Hotel Revenue Management

3 Types of Hotel Revenue Management

In-House revenue management for hotel vs Outsourced.

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A hotel employs an in-house revenue manager at each property, giving them the chance to work directly with guests and advance the hotel’s revenue culture. These in-house structures become a part of their sales and marketing divisions. The benefits of putting it to the same level as sales and marketing have been more apparent to hotels in India in recent years.


For large firms, the revenue management process can be shifted from each hotel to a central team. The team’s roles are segmented by brand, market, hotel type, location, etc.


Revenue management outsourcing extends the centralized strategy. The hotel hires a third-party consulting firm rather than a full-time revenue manager. The planning and delivery of your hotel revenue management will be handled by a skilled team of revenue managers, data analysts, etc. who work remotely and visit the hotel based on a set schedule.

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What are the Benefits of Outsourcing Hotel Revenue Management Services?

Benefits of Outsourcing Hotel Revenue Management Services

Why outsourcing is important? Outsourcing to a revenue management company will outperform your competition and set you up for success. Below are a few points to show why you should be outsourcing revenue management services.

I Want to Outsource Revenue Management

1. Cost Savings

Cost Savings

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Finding a qualified revenue manager isn’t simple and unquestionably doesn’t come modest. The shortage of income administrators is a main problem in the business. What’s more, the issues don’t stop there. Even once a revenue manager has joined, there is no assurance on quality, training, and how it will require this person to leave for other opportunities. Outsourcing will relieve you from all this haphazard work and save cost.

2. Optimal Financial Results

Optimal Financial Results

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Outsourcing a revenue management service will help to quantify the financial benefit, especially considering the many factors that come into play when it comes to successful Hotel Revenue Management. However, nearly all hotels can undoubtedly profit from the right company leading its revenue management strategy and operations.

3. Increased Efficiency

Increased Efficiency

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Revenue Management is concerned with many components, making it a particularly perplexing forte. Most hotels are missing out on the major opportunity for revenue generation for more than one of the accompanying perspectives:

1. Rate openings (for example lodging type, season, lead time, division, sort of rooms, day of week designs, survey score)
2. Ancillary income (F&B, MICE, Spa, and so on)
3. Market and financial variances
4. PMS/POS/CRS openings
5. Organizational challenges and primary change
Outsourcing will help to deal with all these factors.

4. Competitive Edge

Competitive Edge

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Being in a very competitive market, it is very crucial to run with your competitors. You need to sell more than them, see more than them, and be ahead of them in all aspects. Outsourcing Revenue Management Services helps to keep abreast of the market and also how to move ahead of them.

5. Expertise


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Talking about expertise, an in-house revenue manager works for a single property, the one that hired them. An outsourced hotel revenue management team, on the other hand, works with multiple hotels in various locations. In other words, they have greater experience working on different problems, which in turn helps them develop better revenue management strategies.

6. 24/7 Support

24/7 Support

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In-house experts work within a fixed shift in a hotel. It could be 9-5 or any other shift and they get paid for those working hours. But if you want pricing tweaked at odd hours or assistance even after regular work hours, the outsourced revenue management services are your best option. Because most of the service providers offer 24/7 chat, email, or call facilities. They are always there to assist you.

7. Improved Guest Experience

Improved Guest Experience

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Outsourcing hotel revenue management services offer the best customer service. When you opt for hotel revenue management services, you will have more time to focus on other crucial tasks as a hotel owner. You don’t have to constantly monitor your revenue manager which will streamline processes, and save time and money.

Now you can focus on your staff and provide a better experience to the guests. While the outsourced hotel revenue management company works on boosting your revenue. Are you searching for the bests hotel consultants in India? Look no further, choose Revnomix.

5 Hotel Revenue Management Pricing Strategies

5 Hotel Revenue Management Pricing Strategies

Hotel Room Night is a perishable commodity. A night not used or paid for is gone forever.

Outsourcing helps a company’s process through third parties or outdoor agencies, leveraging profits ranging from low-cost labor, and better quality to product and service innovation.

With the help of revenue management and pricing services, a hotel is able to optimize revenues and focus on other crucial tasks. The first step in a revenue management service is to examine the various segments of the market for your service. Then design the different ways in which you can charge different prices to the different market segments.

The motive stands to expand the market and increase the revenue potential by charging higher prices to those market segments which are not responsive to changes in price level and lower prices to those market segments which will respond to a price reduction.

With the use of historical data, market triggers and demand signals, revenue management services give insights and recommendations for each room type and segment at the property. This balance is achieved to maximize room productivity and yield per available room.

Read More About 4Ps of Hotel Revenue Management

1. Dynamic Pricing

Dynamic pricing is the most popular hotel revenue management pricing strategy. With dynamic pricing, hotel owners can adjust room prices at any time in reply to real-time data. Prices are lower when supply is more than demand, and higher when demand is greater than supply.

Hotel dynamic pricing enables you to charge more for the few rooms that are left when the majority of your rooms are booked and vice versa. You are more likely to generate the maximum revenue for each room, every day if you are actively changing rates to match demand and other factors.

2. Forecast Pricing

Many hotels opt to employ a forecast-pricing method using full historical data. It predicts available rooms at a future date by using current occupancy data and records for the same season the year before.

Forecast pricing can assist hotels in setting reliable rates far ahead of time, but it isn’t always able to account for unforeseen events or rival moves, which could affect the accuracy of your forecast.

3. Segment Pricing

Segment pricing enables hotels to offer different prices for the same room to different customer segments. You can forecast which rooms will be the most in-demand by which segments at which times based on the age, tastes, needs, lifestyles, etc., and then set your rates effectively.

4. Stay Length Pricing

The date of the guest’s arrival and the length of their stay are also factors that some hotels use to adjust room rates. The minimum number of days that guests must remain is required, and they pay a single fee for the duration of their visit. In addition to lowering overhead expenses, hotels can also combine low-demand days with high-demand ones, assuring steady revenue, by offering a better discount per day for a longer duration stay.

7 Hotel Revenue Management Outsourcing Tips

Tips to increase hotel revenue by outsourcing revenue management services.

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At the point when the Covid-19 pandemic hit, the attention all became on fundamental laborers. When taking a look at hotels, the focus was given to the essential employees so that the hotels stay beneficial and continue to get heads into beds. This has gotten more articulated in the COVID-time.

Each penny means a lot for the hotels, as they fight lower inhabitants and falling rates. A solid revenue strategy is vital for keeping hotels pushing ahead, bringing in visitors even in the least interest periods.

It is time that hotels should take up the idea of outsourcing revenue management services. Here are 7 tips:

1. Do More with a Limited Budget

Covid has hit the revenue generation for different service industries, hotels being one of them. The pandemic has forced them to cut down on employees and relieve them of their duties whereas running themselves on a shoestring staff.

Many hotels had to let go of their revenue management departments as well. But as the business has to go on while keeping the precautions for Covid-19, having a non-revenue manager handle the hotel revenue can slow and smother a hotel’s chance at a rapid recovery.

This is when you can outsource work. Rather than paying a full-time salary, you can now manage on a fixed amount to look after it. The outsourced team being experts in the field will be able to provide you with better solutions to run the business in a time of crisis.

2. Know More than the Property

Outsourced Revenue services put a huge effort into many business sectors, and have contacts in various other data firms so they give you industry patterns and activities that you may already have not had the option to get to.

Outsourcing revenue management means you can get fresh eyes on your property, however the more extensive miniature and large-scale markets, and public patterns. This is a vital expansion to a hotel’s administration that will not cost you extra money.

3. Hire a Team Instead of One

Having a revenue manager is extraordinary for certain properties, yet when you just have one individual from your income group, it very well may be a ton for one individual. Revenue managers on the location are continually being maneuvered into different gatherings, bearings, helping with the front work area, and various undertakings which take their brain and consideration off the thing they’re being paid to do, to make the cash.

Outsourcing doesn’t have this issue. They are allowed to zero in exclusively on the income for your lodging and provide you with the best rates for more profits. Their groups have more than one person, you’re getting an income director and experts, an entire income group for the expense of one full-time on-property revenue manager.

4. Collaborate with Third Parties

At the point when you solely handle your revenue management, it might be precarious to arrange appealing arrangements with OTAs, tech suppliers, or any accomplice you wish to work with.

You can wind up managing junior record administrators with no genuine state or capacity to offer appealing deals. By outsourcing revenue management services, you are without a doubt working with an organization that has a huge arrangement of lodgings and consequently solid contacts with a few tech suppliers and OTAs.

Now may be the perfect time for your hotel to outsource your revenue management. The positives are numerous, and it’s a great move to help safeguard the future of your property.

5. Give Value Rather Than Price

It’s not always possible to increase demand by cutting the price, and doing so might not always be a good idea either. The value should be focused on price. People are, after all, willing to spend more if they are assured of receiving superior service as a whole. While maintaining your desired pricing range, you can also offer extras like free breakfasts, more discounts on direct bookings, etc.

6. Use Automation in the Right Place

Although automation has a major role in revenue management, it’s crucial to avoid totally depending on it. While algorithms and revenue management software can be used to perform calculations fast, the best strategies call for a deep evaluation. A human touch will be needed for cases where you may need to think outside the box, take risks, or try something new.

7. Evolve with Changing Customer Behaviour

While historical data is vital for revenue management, it is also crucial to analyze the present and future. This is notably accurate when it comes to shifting consumer behaviors and habits. For example, you might observe that more of your clients are booking hotel rooms online compared to travel agents now than they were five years ago. Ensure that your strategies are suitable for today’s customers by keeping an eye out for changing behavior.

4 Hotel Revenue Management Challenges in the Hospitality Industry and Tourism

It takes time and effort to manage revenue and create winning strategies. It’s not only time but other factors as well that increase the complexity. Here are the main issues hotel owners face with revenue management.

1. Lack of Experts & Tech

It takes experts with in-depth knowledge of the industry, and skills in data analysis, communication, critical thinking, etc. to manage revenue effectively.
Making data-driven strategic decisions, getting a complete view, and doing fast data analysis are all difficult without the best software that is linked to internal and external systems. A major industry issue is a transition from outdated systems to current tech.

Try Revseed – The Best Revenue Management System Software

2. Unstable Market & Demand

The COVID-19 pandemic showed how unstable things can be. It is nearly impossible to make reliable forecasts at this point in time since consumer behavior, competition, and other conditions are changing so quickly. Hotels need a long-term plan and make future decisions on price, marketing, etc.

3. Rise in Cost of Distribution Channels

When we discuss revenue, it’s not just about incoming money but expenses also matter. Hotels often overlook the costs that various channels entail while making a plan. For example, social media ads and SEO raise the price of direct bookings while improving awareness. The marketing and sales teams must work closely together and do deep research to pick the best channel mix. Looking for a hotel marketing company? Revnomix is the best.

4. Lack of Trust

A hotel may have a different vision of a strategy. And people with traditional mindsets don’t trust automated forecasts or prefer to make decisions based on them.

Hotel revenue management services break through the silos and show the results of actions and measures taken.

Which Hotel Revenue Management Services Are Best for You?

Hotel Revenue Management Services

The hotel industry is ever-changing. It now requires a 360-degree strategy that focuses on strong channel revenue optimization. For every hotel, we are passionate about giving access to a skilled hotel revenue management team.

When you outsource revenue management, your hotel will have access to experts in many markets without a huge contract or big financial move. It saves time and money and can be customized to your needs to maximize your ROI.

Can the revenue agency boost your topline revenue by up to 20%? Looking for a hotel management consultancy? If you’re interested to know more about Revnomix Solutions, please contact us for a free consultation today! We have worked with popular brands like Hyatt, Hilton, Sula, and many more.

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Outsourcing Revenue Management Services - Why you should do in 2021?
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Outsourcing Revenue Management Services - Why you should do in 2021?
Outsource hotel revenue management services to Revnomix & get access to experts, save money, & maximize your ROI. We have worked with brands like Hyatt, Hilton & more
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Revnomix Solutions
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