What is a revenue manager and what do they do?
A revenue manager uses performance data and analytics to help their organisation more accurately predict demand, and other consumer behaviours, to maximise revenue and profit. They are responsible for providing information to the business that allows management to make informed pricing and distribution decisions
Revenue managers apply economic and financial knowledge, staying abreast of market conditions and the wider economy, to assess any impact on a company’s revenues. They are responsible for implementing and driving trading and pricing strategies, working across the business to ensure processes enhance performance. The role is highly commercial and analytical - Revenue Managers typically benchmark against past performance to estimate future revenues, while balancing short-term seasonal results against long-term goals.
- Setting short, medium and long-term targets to maximise revenue and improve business profitability.
- Providing input to sales plans and revenue targets and then monitoring performance through appropriate KPIs and trading reports.
- Creating and continuously improving revenue management models to ensure targets are being achieved.
- Developing and continuously reviewing trading plans including offer proposals, execution and performance reporting.
- Setting the pricing strategy during the budget and planning process, and coordinating the inventory and system requirements to drive optimal revenue generation.
- Managing performance against budget, highlighting concerns and opportunities and liaising with sales and marketing teams to ensure concerns are being communicated and addressed via all sales channels.
- Maintaining a thorough understanding and awareness of competitors’ position and trends, particularly pricing and offers.
- Ensuring that all core areas of revenue management and asset utilisation are tracked and monitored.
- Seeking new direct routes to market that deliver incremental growth and support strategic goals.
Why are they important?
Revenue managers have become particularly important in industries with unpredictable revenue (i.e. hospitality). The insight provided by revenue managers, who compile and analyse market and competitor data as well as monitor sector developments and follow market trends, is key to maximising sales and profits and to allow organisations in such sectors to forecast effectively.
Skills needed for this role
Revenue managers are commercial, highly numerate with strong attention to detail and excellent analytical skills. They require good communication to enable them to liaise with people at all levels.
Strategic Professional Options examinations linked to this role
Career opportunities presented by this role:
This is a role that blends excellent commercial awareness with strong analytical skills. The experience gained in revenue management is highly transferable and can act as strong grounding for a career into senior management.
High level competencies required include:
Advisory and consultancy
A. Gathers and understands financial and non-financial information to develop complete knowledge of the client business and the environment in which it operates.
B. Provides expert advice that will add value to the business and gain advantage.
C. Identify and advise on business partnering to develop strategic relationships to create opportunities, improve performance and solve business problems.
D. Prepare and present business plans and advise on the actions to implement these plans.
A. Links developments in global trade, markets, business practices and the economic environment to required improvements in the financial and risk management of an organisation.
B. Advises on business asset valuations, capital projects and investments using appropriate analytical qualitative and quantitative techniques.
C. Identifies, evaluates and advises on alternative sources of business finance and different ways of raising finance.
D. Communicates and advises on the impact on financial decision making on current developments in regulation, governance and ethics.
E. Assesses and advises on appropriate strategies to manage business and organisational performance regarding business and finance risk and effectively communicates the impact.
A. Applies development and performance management, in the wider business and technological environment, within the context of strategic planning and implementation.
B. Directs organisational performance through the selection and measurement of financial and non-financial performance indicators.
C. Collaborates on the key tactical and organisational areas of budgeting and control, capital investments, people and resource management.
D. Consults on the design and use of current and emerging technology and information systems to improve strategic decision-making and organisational performance.
Stakeholder relationship management
A . Positively develops relationships with internal and external stakeholders.
B . Communicates and gains commitment from internal and external stakeholder.
C. Uses emerging technologies to collaborate and communicate effectively with stakeholders.
D. Applies professional and ethical judgement when engaging with stakeholders.
E. Aligns organisational strategic objectives with stakeholder needs and manages expectations.
Strategy and innovation
A. Applies business acumen and commercial awareness to deliver business objectives.
B. Recommends a range of suitable strategic options from which to develop sustainable plans and objectives.
C. Evaluates, justifies and implements suitable strategic options.
D. Adopts and applies innovative methods to implement strategy and manages change.
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