What are the advantages of outsourcing your hotel’s revenue management?

Revenue management is a pricing method designed to increase your hotel’s income over the long term. It involves managing prices and rates according to supply and demand, in order to make the sale of your assets profitable. While it’s possible to develop your hotel’s revenue management in-house, it’s also possible to outsource this service. This article explains the advantages of outsourcing your hotel’s revenue management.

Why outsource your hotel’s revenue management?

There are many reasons for outsourcing your hotel’s revenue management.

Firstly, it can be an interesting alternative to hiring a revenue manager. In fact, hiring a new employee in such a specific field requires monitoring their work. To do this, however, you need to have revenue management skills yourself, which is not necessarily the case. Outsourcing this service allows you to deal with people who are recognized for their skills in this field.

Secondly, it enables smaller hotels to call on a revenue management service when necessary. In this respect, there is a definite reduction in the costs associated with this service, compared with hiring a revenue manager who would remain with the establishment on a permanent basis. It also avoids the need to invest in the sometimes costly software required for effective revenue management.

Thirdly, outsourcing, through the expertise it generates, leads to a significant increase in profits. Since revenue management is carried out in such a way as to ensure that revenues are definitely multiplied within the establishment, the expertise brought in by outsourcing is a considerable added value.

What are the advantages of outsourcing your hotel’s revenue management?

The added value provided by an outsourced revenue management system is of real interest to your hotel.

First of all, the time freed up by outsourcing your hotel’s revenue management system means that you can work more efficiently on other tasks, and significantly improve the services you can offer. It also reduces your staff’s workload, allowing them to concentrate more on the tasks at hand.

Secondly, the ability of external service providers to develop your hotel’s revenue management is first and foremost based on their specialization in the field. The fact that they are specialists means that you can count on skills that are harder to find in-house. What’s more, as experts in their field, the external service providers you call on will be able to provide you with a truly high-quality service, enabling you to significantly increase your revenue thanks to their revenue management services.

Thanks to outsourcing, you’ll be working with service providers who have the best revenue management tools at their disposal. Thanks to these tools, as well as their understanding, monitoring and analysis, they will be able to bring you real results in terms of boosting your revenues.

What’s more, by outsourcing revenue management to a team, you’ll be able to call on the skills of a whole range of people, rather than just one person in charge of revenue management within the hotel. This application of teamwork is also the source of significant added value, since it enables us to develop different opinions and ensure a job well done.

Last but not least, the complexity of revenue management means that it needs to be handled by experts in the field. In fact, having an external service provider take charge of this service brings with it the possibility of expertise. This expertise not only increases your revenues, but also gives you a competitive edge. Thanks to a high level of expertise and good management of your revenue management, the possibility of being more competitive in the hotel market opens up.

Outsourcing revenue management within your hotel saves you time, avoids the management of a complex service, generates more revenue and sets you apart from the competition. Outsourcing revenue management is a way of becoming more competitive in the hotel market.