How to Become a Revenue Manager
How to Become a Revenue Manager
Lodging facilities strive to provide the best service to all customers and clients and a variety of managers are required for the effective and efficient function. Revenue managers are trained professionals that are responsible for financial management of lodging facilities.
What does a revenue manager do?
Revenue managers handle a variety of tasks related to financial management such as monitoring reservations and room sales, projecting occupancy levels, supervising accounting and cash-flow issues, and determining when to offer rate specials and which rooms to discount. They strive to create positive revenue and keep customers returning to the facility. They review a variety of financial documents and data such as past rate history and occupancy demand and the current reservation and booking pace. They assess the market demand and determine how it affects the facility. Revenue managers evaluate all the necessary factors to make effective decisions.
What kind of training does a revenue manager need?
Revenue managers typically need at least a bachelor degree in hotel management, hospitality, or other related field. Many employers prefer candidates with sufficient work experience. Prospective revenue managers often complete courses in hospitality management, business administration, economics, finance, accounting, and computer training. Many aspiring revenue managers complete internships or obtain part-time positions in hotels to gain practical experience and establish valuable contacts. Some revenue managers begin their careers in entry-level positions and advance to management positions as they gain the necessary skills and experience. Most employers provide some type of on the job training to enable new revenue managers to learn the necessary policies, practices, and procedures of the position. Revenue managers often complete additional education and training as needed throughout their careers.
What are the prospects for a career as a revenue manager?
Employment of revenue managers is expected to grow slower than average for all professions, increasing 5% from 2008 to 2018 (1).
Job prospects should be good with strong competition for positions at hotels with a high level of guest services. Many job openings will stem from the need to replace revenue managers that retire, transfer, or leave the field for other reasons.
How much do revenue managers make?
As of February 2010, revenue managers with less than 1 year experience earn average annual salaries between $36,774 and $41,391. Those with 1 to 4 years experience earn average annual salaries between $38,036 and $55,179 (2).
A career as a revenue manager is a great choice for people with a strong interest in hotel management and performing a variety of financial management tasks. Revenue managers must have a solid understanding of the financial operations of their facility and the influence of the market. Patience, detail orientation, critical thinking, and good problem solving skills are necessary characteristics. Revenue managers must have excellent communication and interpersonal skills as well as great customer service skills. They must able be able to make effective decisions and work under stress and pressure.