When it comes to generating revenue within a hotel or extended stay accommodation, it seems simple. Book rooms – generate revenue. However, a lot more goes into it than that. For an accommodation to be successful, it must generate adequate revenue to maintain profitability year after year. Revenue does not equal profitability. Many expenses go into running a hotel, including labor, electricity, maintenance, etc. Much of the money coming in via room bookings must be allocated to those expenses to keep the hotel in safe, running order and to keep staff paid for their hard work. So, profit only comes when revenue exceeds those expenses.
The hotel industry is also very competitive. In most locations, guests have options when it comes to where they want to stay. Price is often a huge factor in that decision. There is a great deal of strategy involved when it comes to pricing structure and maintaining competitiveness in the market to ensure occupancy consistently remains at a level that generates the revenue needed for the organization to be profitable.
What Does a Revenue Strategist Do?
In some hospitality establishments, revenue strategy is crafted and executed by the General Manager. However, the role of a GM is very multifaceted, so larger organizations often employ a Revenue Strategist to take on these responsibilities instead. A Revenue Strategist is responsible for developing and implementing a pricing strategy for the organization. Doing so effectively requires constant attention to variables such as vendor pricing, market trends, and property management needs.
A successful revenue strategist consistently monitors and evaluates changes in those variables and designs a pricing structure to keep the organization competitive and profitable. This involves generating reports and analyzing trends in things like booking pace regularly. For establishments that offer more than accommodation, such as those offering rentals of banquet halls or meeting rooms, the pricing structure must also include rates for these special events. Also, because hospitality is a cyclical industry, the pricing strategy in one month will look completely different from another depending on travel trends, holidays, etc.
While much of the analysis and strategy efforts of a Revenue Strategist are done independently, the role also closely collaborates with other stakeholders to ensure transparency within the organization and to ensure the strategy is implemented effectively. So, it’s important that strategists regularly and accurately deliver reports to those stakeholders. Often, they will work with others on the Operations Team, in addition to GMs. When it comes to those external to the organization, Revenue Strategists develop relationships with and liaise between vendors and distribution partners and the organization as well.
Top Qualifications for a Revenue Strategist
So, what makes a candidate qualified for this type of position? While having a Bachelor’s or Associate’s Degree in Business or Hotel/Resort Management is sometimes preferred, establishments are often eager to consider those with a combination of a high school diploma and relevant work experience in a similar role. Applicable roles include another revenue-oriented position or time in a front desk or reservations-based role. Because of the relationship aspect of the job, ideal candidates bring strong communication skills, both written and verbal. These skills allow Revenue Strategists to collaborate well with others on the management team as well as with external partners and vendors.
Most hospitality organizations utilize software programs to handle the operational aspects of the business. In some cases, those are simply Microsoft programs such as Excel. However, some organizations rely on hotel-specific software. Candidates bringing experience working within these software programs are highly valued – as are those with a basic understanding of hotel accounting processes, requirements, and reporting functions.
Additionally, top Revenue Strategists are nimble and able to make decisions quickly in an often fast-paced environment. They bring solid multitasking abilities and keep organized – prioritizing high attention to detail and accuracy. Because of the close collaboration between them and other members of the team, they can contribute to a team as well as work independently – depending on the day. As with any role in the industry, guest satisfaction is a top priority. While it may seem like Revenue Strategists are only concerned with getting guests in the door – they set the tone for the entire guest experience via the pricing structure. So, candidates for the position are driven by a customer-service orientation.
Finding a Job as a Revenue Strategist
Searching for your next role within the hospitality industry shouldn’t be difficult. So, we aim to make the process of finding and applying for your next position simple and quick. Our database of current opportunities, which is updated daily, includes opportunities all around the United States. The filter option allows job prospectors to easily navigate to opportunities that fit their interests and qualifications.
For those looking to eventually become a Revenue Strategist but don’t quite meet the qualifications yet, securing a role at the front desk or in the reservations department at an establishment is a great way to build up relevant skills and experience that employers look for. Hospitality is an industry that often promotes individuals from within. Employers value dedication and hard work, so team members who have proved themselves in similar positions often get first consideration when a more senior-level position opens.
No matter what role you are hoping to secure in the industry, be sure to approach it with a customer service orientation. Hospitality teams work together to give their guests the best experience possible. Whether you’re looking to become a Revenue Strategist, work on the housekeeping team, or secure a role as a General Manager, heading into the role (or even the interview) is sure to make you successful and will provide opportunities to grow!