Management

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Abstract

Revenue management (RM) has gained attention recently as one of the most successful application areas of operations research (OR)

One of the most important careers in hospitality is the revenue management; this is because it’s an essential part of every hotel and also the travel industry. The professionals of concern the discipline are revenue managers. This paper tries to analyze the career path of the revenue managers, from, experiences and educational training, which form a crucial indication of future success in the individual’s desire and analytical development.

Career path for a revenue manager

Revenue managers have different reactions to the related challenges they face each day, but the end reaction should, basically, be the same (Austin, Texas).The challenge starts right from finding the right person to fill the position, due to the challenges in finding the person with the right profile.One of the impeding factors for employers in this field is the lack of awareness in college ranks about hotel revenue management.

Neal Fegan, executive director, revenue management for Fairmont Raffles noted that, employees with a degree in economics, had an added advantage, and had a greater chance of being employed as revenue managers, according ng to Neal, these graduates showed a great deal of expertise in that field, compared to their colleagues from the other fields.

According to the study carried out in Michigan state university, 78% of respondents rose to the position of revenue managers from the humble background of front office operations. In their opinion, this had an immense basis in that it enabled them to develop specialized skills from the experience in the course of their guest service and night audit. These had an advantage in that they enhanced one’s communication and analytical skills, which are the basis of a revenue manager. The next important office, according to the respondents, which had a significant input in their managerial career was the front office and specifically in the reservations position, where they carried out administrative duties. They agreed that it had an important t input in their career in that it enhanced their experience in group contracts, group bookings, and additional yield selling techniques. Tranter, K. A. (2009).

The research further revealed that, some revenue managers were once in other managerial positions such as inventory manager, assistant room’s manager, front office manager and reservations manager(Mcgill & Ryzin, 1999). The findings also revealed that, though significant in the hospitality industry, direct Food and Beverage experience had not been indicated as essential to the position of a revenue manager. However, food and beverage along meeting space and spa usage, was a critical component of total hotel revenue management. However it was noted that, substantial knowledge of food and beverage trends and spa treatments, based on time of the day and day of the week, gave a revenue manager better insight into overall revenue profit flow-through for all internal channels which were essential for total revenue management positioning.

If one need to be a competent revenue manager, among essential skills ones needed to acquire is verbal business communication, self-management, influence, credibility, proactivity and strategic revenue management practices. However it’s important to note that s the field evolves, so do the skills. Hence more and more understanding of online marketing and functionality of e-commerce is essential, to be successful in the position.

In most organizations, the director of revenue management is an executive committee member; hence since there are few players in the revenue management department in many hotels, the potentiality to rise to the top are significantly higher than any other department-assuming you have the required skills. In fact, this was one of the factors that had attracted many peers who had aspired to be in the hospitality industry. (Legohe?rel, Poutier, & Fyall, 2013)

Revenue managers have the opportunity to pursue either of these fields in management: regional revenue management position or director corporate role, supporting several hotels. Some may pursue a path in rooms division director or operations director role, where they may be assistant general manager or director of sales position. Others may stay at the property level and go into accounting as controllers, positions that put their analytical skills to good use. Revenue managers have the opportunity to move into all these oppositions due to their experience in all the aspects of the hotel.

The Michigan state study found varying educational backgrounds, for revenue management professionals. More than 60%of the survey respondents had a college degree, with less than50% having a hotel restaurant management degree. However, most of them had either a liberal arts or general business background. The findings revealed that, some of the most relevant skills for revenue managers were based on the job training, field training, and industry provided education.

The findings also revealed that, the revenue managers tend to be on work for a while. The findings showed that by the fact that’88% of the study’s respondents had been in the hospitality and tourism industry for more than n seven years, and 61%had more than seven years experience in the industry, prior to earning the title of revenue manager.

As the revenue management continues to diversify, the crucial role played by the revenue managers continues to be evident in the minds of owners and asset managers.

The owners have realized that revenue manager is not only mere staff position, but also is a culture. Hence, it was seen that revenue management is the catalyst to profit optimization( Talluri & Van, 2004).

In conclusion, we can see that revenue management is an extension of the sales team, more than it is an extension of the operations. We see that in the changing environment, the revenue management function will continue to morph into a marketing role and include demand generation, not just demand management.Revenue management will continue to evolve faster than the speed of marketplace and technology.Hence, a revenue manager must always be watching and maximizing

 

 

 

 

 

 

 

 

 

 

References

Legohe?rel, P., Poutier, E., & Fyall, A. (2013). Revenue management for hospitality and tourism. Woodeaton, Oxford: Goodfellow.

Mcgill, J. I., & Ryzin, G. J. (1999). Revenue Management: Research Overview and Prospects. Transportation Science. doi:10.1287/trsc.33.2.233

Mcgill, J. I., & Ryzin, G. J. (1999). Revenue Management: Research Overview and Prospects. Transportation Science. doi:10.1287/trsc.33.2.233

Talluri, K. T., & Van, R. G. (2004). The theory and practice of revenue management. Boston, MA: Kluwer Academic Publishers.