Revenue management in the hotel industry involves optimizing the price and availability of rooms and services based on analytics that predict consumer behavior to maximize revenue. It can be an extremely effective discipline, but specialist knowledge is required to make the most of it. For this reason, many hotel managers opt to use the skills and services of freelance revenue managers, and here, we look at five reasons why your business may benefit from doing so, too.

The Role of a Freelance Revenue Manager

Freelance revenue managers are pivotal in maximizing hotel revenue through strategic analysis, pricing, and distribution management. This table highlights their key roles, from market analysis to pricing strategies, and their positive impact on a hotel’s financial success.

Core Function Description of Tasks Impact on Hotel Revenue
Market Analysis Conducting comprehensive analyses of market trends, competitor pricing, and demand forecasting. Enables informed decision-making for pricing and inventory management to maximize revenue.
Pricing Strategy Developing and implementing dynamic pricing strategies based on market analysis and demand. Optimizes room rates to improve occupancy rates and overall profitability.
Channel Management Managing the hotel’s distribution channels to ensure wide visibility and optimal booking flow. Enhances online presence and bookings through strategic channel utilization.
Revenue Forecasting Using historical data and current market analysis to forecast future revenue opportunities and risks. Assists in financial planning and setting realistic revenue targets.
Performance Reporting Generating regular reports on revenue performance, market trends, and pricing effectiveness. Provides actionable insights for ongoing revenue strategy adjustments.
Inventory Management Adjust available inventory across channels to maximize revenue per room (RevPAR). Prevents overbooking and underbooking, ensuring optimal inventory utilization.
Promotional Strategy Planning and implementing promotional offers to boost bookings during low-demand periods. Increases occupancy and revenue during off-peak times with targeted promotions.
Competitor Analysis Regularly monitoring and analyzing competitor pricing and strategies. Keeps the hotel competitive by adjusting strategies in response to market changes.

Video: The Role of a Freelance Revenue Manager

1. They Have Knowledge and Experience

Perhaps the most obvious advantage of working with a freelance revenue manager is that they are experts in revenue management. This means they know exactly what they are doing and already have experience in companies similar to yours. In most cases, they will also be able to provide you with references so you can speak to people who have benefited from their expertise in the past.

Revenue management is extremely important in hotels – according to the Revenue Management Trends & Predictions Survey by Duetto, In addition to knowing exactly what they are doing, which will ensure they do the job well, a freelance revenue manager will not require expensive training and will not need to be closely monitored. This will, in turn, give you more time to spend on your tasks around the hotel or resort.

2. They are Cheaper Than You Think

Many hotel owners consider freelance workers expensive, which is counterproductive when you aim to maximize revenue and increase profits. However, a freelance revenue manager may be cheaper than you think and significantly cheaper than hiring somebody full-time.

Freelance workers are paid for their work, so there is less risk of wasting time on non-work activities. Moreover, workplace absenteeism is not costly because you will not be required to provide any freelance workers you use with sick and maternity pay.

3. They Offer Excellent Flexibility

Most freelancers enjoy their work’s flexibility, and your hotel can also benefit from this kind of flexible working. Essentially, you can offer freelance revenue managers work when you need them without employing them as full-time staff members.

For example, you could use them to set up your revenue management strategy and then only offer them additional work if you need major changes. Freelancers will typically operate that way for several years, so if you maintain a good relationship with them, they will likely be available for future work.

Freelance Revenue Manager - They Offer Excellent Flexibility

4. They Will Usually Get to Work Quickly

As a general rule, freelancers receive work offers with strict deadlines and are used to getting the job done as quickly as possible to meet those deadlines. After all, freelancers know that the amount of money they take home depends entirely on how much work they get through.

The swift nature of freelance work is a major plus from your perspective because it means there is less of a wait before you benefit from the freelance revenue manager’s expertise and insight.

5. They Are Both Driven and Innovative

Finally, a freelance revenue manager knows that he or she must compete with all other freelance revenue managers for work offers. As a result, they know they must offer a service that is worth paying for and worth passing up on the services of other people working in hotel revenue management.

For this reason, the typical freelance worker is likely to be extremely resourceful, will take great pride in their work, and may even be able to introduce genuine innovation to stand out. For all intents and purposes, freelance revenue managers are entrepreneurs whose dedication and drive can be of great value.

Freelance Revenue Manager FAQs

A revenue manager’s responsibilities primarily revolve around optimizing the financial performance of a hotel. This is done through predicting demand, data analysis, and setting room rates and pricing strategies to leverage these factors.

Revenue managers work with room inventory and prices to maximize revenue through strategic innovation based on existing data. Sales managers instead use customer interaction, sales team management, and new sales strategies to generate sales.

The revenue manager will typically report to the general manager or finance director of the hotel. However, in some chains, the revenue manager might report to a corporate or regional director of revenue management.

A handful of specific skills set freelancers apart from their peers. These include expertise in revenue management, digital marketing, property management systems, and the various elements of customer service. On top of this, freelancers also benefit from expertise in specific areas and adaptability in any and all of the previously mentioned skills

The answer is dependent on how outsourcing is used. If outsourcing allows a hotel to leverage external expertise while focusing on core competencies it can increase revenue. Some examples of these core competencies include revenue management, technology solutions, and digital marketing. Focus on any of those elements can lead to profitability born of improved efficiency.

For more information, read “Outsourcing Revenue Management: Ways it Benefits Hotels.”

Hiring a freelance revenue manager has several advantages when implementing or maintaining a revenue management strategy. Freelancers already have the knowledge and experience to finish the job and tend to get to work quickly. Furthermore, there are financial and logistical benefits as well.

Did You Like This Article About Freelance Revenue Manager?

You might also be interested in the following articles:

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

Submit an Article

This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.