Do you want to know more about Outsourcing Revenue Management service?


You may have already heard about the outsourcing of revenue management and the pro’s and con’s of doing it.


In the following article, we have looked at benefits of this service that is becoming more and more common in the lodging industry and some more things to keep in mind when deciding to outsource.



 Main benefits:


Increase your Revenues


This is of course the most important benefit of outsourcing revenue management: an increase in revenues. The fact that somebody is looking after your


rates and your distribution means an increase in revenues, almost guaranteed!!


You might increase occupancy or average rate, but either way, your revenues should go up.


Your Revenue Manager will to analyse for you in which area there is more potential to grow.


While your revenue manager is going about his work, your staff  can dedicate their time offering better service, looking after other segments or focus on repeat customers and loyalty programs or


even cross selling.


The relationship with the outsourcing company has to be built on trust and the revenue manager needs to feel and act as part of your team.



Less daily work


Some hotels have a small structure and staff is multi-tasking: this is inevitable, because a hotel has a lot of little things to do every day.


If the receptionist must to rate changes, answer requests from email, confirm reservations, download credit card details, serve to the client, where should the main focus be? Customer Service?


Revenue analysis? Yield strategies design?


Outsourcing the revenue part of your business trusting in a good Company could be the best to reach success:


  • Some Revenue tools are complicated to understand, if you actually don’t use it every day and don’t have a direct relationship with it could be a nightmare. The Revenue expert knows it and


he or she is encouraged to use them and understand how to set it.


  • Almost every day the OTAs changes something the procedures and create new offers or internal tools, your Revenue Manager can help to you to identify which of them can be used in your





Promote direct reservations.


You can receive more direct bookings and improve your tools for more reservations saving online distribution costs.


The Revenue manager designs with you a right strategy for direct channels and metasearch engine with the objective to increase your revenues and decrease your costs.


The effort of increasing direct reservations should not result in lowering the rates to an extent that makes the direct reservation less profitable. Your Revenue Manager should help you keeping an eye on that.




More detailed analysis


The Revenue Manager analyses the market, the historic files, the hotel, makes benchmarking improvements, makes decisions concerning this data and


implements the decisions. It is always better when someone is focused uniquely on this job.


Of course, as a hotel, you can be part of this process but it also is a great opportunity to focus on other things.






The Revenue Manager should adapt to existing tools and focus on how to improve them, for example, a new and faster channel manager.


It’s quite important to choose a Revenue Management service that can adapt to your needs, understanding your way of doing business and defining objectives together.




Direct and ongoing communication


Daily communications are normal with the operational departments for everything regarding reservations, rates and changes.


General management will have a weekly meeting to evaluate the results and fix a new strategy of pricing for next moths.


Of course, you should be kept informed of all action and incidents managed, with the hotel and with other external companies (PMS, OTA’s, IT ….)



We hope you enjoyed reading this article and, if you are still heaving questing please, do not hesitate to contact us at or call us at +34 934518417.


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