Revenue management is more of a philosophy than a set-in-stone strategy. Regarding the hotel and hospitality industry, revenue management is all about selling the right room to the right guest at the best possible time, and always at the best price. Moreover, a good revenue manager will be able to identify which distribution channels are best suited for these efforts. Ultimately, revenue management is about maximizing profits and revenue while always remaining cost-efficient. Whether it’s a special project for an existing hotel or a business philosophy you’re adopting, an interim revenue manager can yield huge savings and massive potential profits for your organization.

What Is an Interim Revenue Manager?

An interim revenue manager is an individual who takes on revenue management responsibilities on a short-term basis, often during significant moments in a hotel’s existence, such as times of transition. However, interim revenue managers may also be hired to temporarily plug a skills gap in your business.

As with a full-time revenue manager, an interim revenue manager will be in charge of developing pricing strategies, forecasting, and relevant data collection to maximize revenue and profitability. Unlike a full-time revenue manager, however, the hotel avoids long-term commitments in terms of salary and employee benefits.

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Why Is an Interim Revenue Manager Important for Hotels?

An interim revenue manager can be vital for hotels because they can enter the business and focus specifically on increasing revenue and maximizing profit. A good interim revenue manager will explore a variety of options, from pricing strategies to distribution and inventory management, with the aim of improving outcomes.

Hiring an interim revenue manager rather than a full-time revenue manager can also be beneficial because it introduces someone with established expertise in this field but with a fresh, outside perspective. This can help hotels overcome blindspots and explore new ideas to become more competitive and appealing to guests.

What Are the Qualities of a Good Interim Revenue Manager?

In general, a good interim revenue manager working in the hotel industry will have a strong understanding of how hotel revenue management works and will know how to use software, forecasting, wider market trends and customer feedback to inform strategies. They will also be adaptable and keenly focused on maximizing revenue and profitability.

However, truly great interim revenue managers will also be able to work closely with people in the hotel. They will help to create a culture where people feel able to share ideas or report relevant findings. They will also have the ability to think outside the box themselves and implement strategies that the hotel has not already previously tried.

Challenges of Interim Revenue Managers

Interim revenue managers in the hotel industry face specific challenges, from quickly adapting to operations to establishing credibility. This table outlines these challenges and offers strategic approaches to effectively address them, ensuring interim managers can positively impact revenue management during their tenure.

Challenge Description Strategies for Overcoming
Familiarization with Hotel Operations Interim managers need to quickly understand existing hotel operations and culture. Conduct thorough initial briefings and engage in active communication with team members.
Establishing Credibility Gaining the trust and respect of existing staff as a temporary leader can be challenging. Demonstrate expertise and commit to transparency in decision-making processes.
Implementing Changes Making significant changes in strategies or processes in a limited time frame. Prioritize key areas for improvement and set clear, achievable goals.
Integration with Existing Systems Adapting to the hotel’s specific systems and procedures without disrupting workflow. Avail training on existing systems prior to or upon arrival; rely on support staff during transition.
Short-Term Focus Balancing the need for immediate results with long-term sustainability. Develop strategies that offer quick wins while aligning with the hotel’s long-term objectives.
Departure Transition Ensuring that improvements or changes are sustainable after their contract ends. Create detailed documentation and conduct extensive handover sessions with permanent staff.

Benefits of Hiring an Interim Revenue Manager

Below are the advantages of hiring an interim revenue manager for your hotel.

1. Industry Expertise and Competitive Insights

Revenue management is crucial to any business, particularly within the hotel and hospitality industry. Experts need to confidently and competently assess customer behavior and make insightful decisions to help maximize revenues. An interim revenue manager is a surefire way to bring in a fresh perspective on any project.

Unlike potential specialists who’ve spent a long time within a single organization, a freelance revenue expert will likely have worked with several major hotels and accommodation services. One of the biggest perks of this more varied work history is that your temporary revenue manager can bring you a wealth of expertise, particularly regarding insights into what your competitors are doing.

2. Flexible Schedules and Availability

Many medium to large-sized businesses might already have a revenue management lead or team on staff. However, these roles must be permanently staffed to ensure you get the returns you want. If you find yourself without your dedicated revenue manager for any stretch of time, it’s worth looking into an interim replacement.

An interim revenue manager can be pulled in at the last minute and booked for as long as needed. Ideal if you only need someone for a fixed period of time, and perfect if you’re unsure of the total stretch, you’ll need someone on staff. Hiring an interim revenue manager with specialist expertise is worthwhile considering if you’re pursuing a new project or looking to change tact with an existing business.

3. Interim Rates Save Employer’s Money

Unlike bringing in someone on a full-time contract, freelance or interim revenue managers don’t need to cost employers a small fortune. Many businesses make the mistake of opting for the cheapest option when looking to fulfill a revenue management role, especially when bringing someone into the fold permanently. Still, an interim option gives an employer much more flexibility.

Unlike when you add someone to your regular payroll, you won’t need to pay employer contributions in the form of tax to a freelancer, nor do you have to consider annual leave allowances and bank holiday pay. Simply put, you get more for your money when hiring an interim revenue manager freelance, and you’ll only ever pay for the work they perform for you.

Interim Revenue Manager - Interim Rates Save Employer's Money

4. Ensure an Easy Fit with Freelance Talent

There’s always a risk when bringing in new members to join your team. When you permanently recruit someone into a hotel revenue management role, you’re bound by tight employment laws and restrictions, including a probationary period. Even when it’s obvious that someone isn’t providing the service you require, it’s difficult to remove them from the said role and replace them with a more suitable candidate quickly.

When you opt for an interim solution, you free yourself up from the shackles that a full-timer imposes. If the relationship isn’t working out, it’s a much quicker process to find a better alternative and bring them into the fold more or less immediately. It’s also much cheaper to replace an interim staff member, without the need to part with costly settlements and severance payments.

5. An Ideal Choice for Younger Businesses

If you’re relatively new to the hotel and hospitality industry, bringing in the expertise of an experienced revenue manager can yield quick results. No matter how well you’ve prepared for your first foray into the sector, a lack of hands-on industry expertise and insights gained from years of working in hotel management can lead to you hemorrhaging money quickly, pursuing the wrong business prospects, and inevitably, leading your business into a dead end.

Any freelance revenue specialist worth one’s salt will be able to bolster your business prospects with best practice methods. Bring in an outside voice and fresh perspective, and you’ll soon learn which business to chase and which prospects to turn away. Moreover, a revenue manager can advise on networking opportunities and what connections need to be made with nearby local businesses to boost bookings and retain long-term customer loyalty.

Fast, flexible, and incredibly cost-effective, it’s difficult to find a reason against capitalizing on Interim revenue management talent if you’re looking to boost the profits of your hotel. What’s more, you can quickly bolster your business prowess with the industry expertise and competitive insights an interim revenue management specialist can bring.

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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.