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6 Reasons Outsourcing Your Revenue Management may be right for you

Heidi Gempel

Revenue management is crucial to staying competitive in today's business climate. The function of revenue management must be present in any hotel that seriously wants to compete in today's market.

Over the last decade, the role of the revenue manager has become increasingly complex. Revenue Managers are expected to manage online distribution channels, manage and control automated revenue management systems, and an increasing amount of data that requires processing by - you guessed it -new systems.  

All of this has caused the role of a revenue manager to become highly specialized. Training & retaining talent has become expensive and is a key focus for the industry.

But there is hope! Over the last few years, outsourced revenue management has become a viable option for many independent or boutique hotels or even franchise owners of Mega Brands. Outsourcing revenue management is a dynamic and exciting path worth exploring - in this blog, we outline 6 reasons why outsourcing your revenue management may just be right for you. 

Access to Expertise

Engaging with the right outsourced partner can provide your hotel with a level of expertise that you might otherwise not have access to. If you have a smaller hotel or a boutique franchise property, an outsourced solution will give you access to the strategic insight of someone at a senior/director level with extensive experience that is essential for competing in today's challenging field. 

Rather than having one person on property, your assigned expert has a team supporting and guiding all initiatives, ensuring seamless integration with your team on-site, providing revenue support throughout the year.

An independent "outside-looking-in" view

Partnering with someone outside your team means that they will bring an 'outside-looking-in view'. Outsourced revenue management teams should have  deep knowledge of your market, your type of hotel, and your business mix. They have many years of combined experience to work with you on new and innovative ideas; they should also have the ability and seniority to challenge internal points of view and existing processes that may have become stumbling blocks or a hindrance in the revenue generation process. This is often difficult to achieve from within the team.

Continuous growth through innovation

A value proposition, customer experience or concepts that helped you attain a level of success,  will not be sufficient to keep you at that level performance. Every hotelier needs to continuously innovate to ensure sustained competitive advantage and growth. An experienced outsourced revenue management team will work with you on opportunities and possibilities to leverage and implement new approaches and ideas.

Staying ahead of Trends

Outsourced revenue management teams are usually experts in their fields. They may, as in our case, even be a bit nerdy and very passionate about all things revenue management! We make it our business to know what is happening in our hotels, in our markets, in our industry, and the world around us. We spend time translating macro trends into everyday business environments. We look for trends, search for insights, and the interpretation of patterns.

Working with an outside revenue management team enables you to stay ahead of trends and be on the edge of industry developments and help you be proactive, rather than reactive.

Team of Experts without the need to hire

Good revenue managers are hard to find. Getting them trained is expensive and time-intensive and, without a clear career path in smaller hotels, the turn over is often very high. If your hotel is located in a remote location or if you have constraints with work permits or visas, an outsourced solution may just be what you need. You can maintain the level of expertise and not burden your payroll and manning quota.  

Driven by performance

External parties have an obligation to perform and deliver on agreed targets and objectives. Internal revenue managers often require guidance and direction by senior leadership, which takes time and effort by the leadership team. The right outsourced revenue management partner will develop achievable and fair goals with you, communicate the progress of these goals and inform you of possible roadblocks and problems that could affect the objectives.

Outsourced revenue management companies are measured by performance.


These are our key reasons for you to consider outsourcing your revenue management function. Finding the right outsourcing partner is equally important and we will be sharing with you in an upcoming blog some of key considerations when choosing an outsourced revenue management partner.

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