Pearson New International Edition International pcl tp indd 1

ROLE OF THE REVENUE MANAGER
As indicated in Roadmap 1, our discussion of revenue management begins by con-
sidering the role of the revenue manager. The hotel’s revenue manager is responsible
for making decisions to maximize RevPar. In larger hotels, a revenue manager may be
a full-time position. In mid-size to smaller hotels, the FOM or director of sales and
marketing (DOSM) may serve in this role and make recommendations to the general
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REVENUE MANAGEMENT
ROADMAP 1
manager. In very small hotels, most likely the general manager will have this respon-
sibility. In this chapter, the term revenue manager refers to any individual who
assumes RevPar management responsibilities.
Realistically, the task of maximizing RevPar is part of every employee’s job. For
example, housekeepers must clean rooms properly so these rooms can be sold at the
highest possible rate. The restaurant server who addresses the needs of hotel dining
guests encourages them to return. In both of these cases and in others, employees
provide value to guests and encourage their return by delivering quality service. The
revenue manager must, then, devise and implement pricing strategies to meet the
goals of the hotel and its guests.
How important is the revenue manager to the success of a hotel? The Kimpton
Hotel & Restaurant Group (www.kimptonhotels.com) operates outstanding hotels
that include the Allegro (Chicago) and the Monaco (Denver). Its chairman and
CEO believes that the most important person in a hotel is the revenue manager
because of his or her role in managing rooms inventory. He states that the revenue
manager “should be the highest paid (person on a hotel’s staff ).”
1
1
LaTour, T. 2004. Quoted in Hotel and Motel Management. July 5, p. 29.
Objective 1
Explain the revenue 
manager’s role in 
establishing room rates
by applying information 
about rate types and rate 
determination factors and 
by considering traditional 
and Web-based pricing 
strategies.
Objective 3
Present tactics used by 
revenue managers to 
influence their hotel’s 
occupancy rates and 
average daily rates and 
review how to evaluate 
the success of tactics to 
manage occupancy
and ADR.
Objective 2
Discuss how revenue 
managers use
information about
room types, market 
codes, and track
codes to help
maximize RevPar.
Objective 4
Provide an overview
of yield management 
philosophy and describe 
procedures to help 
maximize long- and 
short-term RevPar using 
yield management 
techniques.
Role of Revenue Manager: 
• Revenue Management 
• Room Rate Mgmt. 
• Room Rate Economics
Revenue Management 
Tools
Revenue Management 
Essentials
Yield Management
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