What is revenue management consulting?

Revenue management consulting is specialised expertise that a business can bring in to gain guidance on managing and optimising revenue.

In terms of hotel revenue management consulting, this guidance usually takes the form of more effective pricing – identifying and setting room rates that are alluring to your target market and result in more bookings, while maximising the amount you earn from each booking.

Streamline operations and boost revenue

Improve your day-to-day processes and implement better revenue management with the leading all-in-one software for small properties.

Learn more

The strategy of revenue management consulting for hotels

Another common strategy utilised in hotel revenue management consulting is to identify other potential revenue streams, from value-adding services, to new target markets, to opportunities to upsell and cross-sell.

By partnering with a quality revenue management company, your hotel will enjoy assistance in establishing and implementing pricing and revenue strategies that make you more money. An investment in hotel revenue management services is therefore one that can quickly deliver an attributable return.

Hotel revenue management might sound like a strategy built for large hotel chains, but the truth is that small, independent hotels can also capitalise on this expertise. In fact, small hotels often have more to gain than large hotels, as their direct competitors often won’t be searching for hotel revenue management.

But where can a small, independent hotel find a quality revenue management consultancy?

revenue management consulting

5 revenue management consulting companies for small properties

At Little Hotelier we’ve partnered with a number of quality consulting companies that help us deliver a more connected and seamless revenue management experience for Little Hotelier users.

Here is a quick rundown of five that we recommend.

Ecommerce Hotelero

A Mexican operation, Ecommerce Hotelero is a consultancy that offers a complete array of hotel ecommerce expertise, but who specialise in revenue management. The company predominantly works with Spanish speakers, however.

Revenue management services:

  • Comprehensive revenue management strategies and guidance.
  • Experts across a range of marketing strategies, including SEO, SEM, social media and email.
  • Offers direct booking support for hotels and hospitality businesses.
  • Data analytics and insight generation through market-leading tools.

Visit website

PJ’s Marketing Mexico

PJ’s Marketing Mexico is a business that has grown with its home country’s tourism industry, and can be credited with spurring an impressive portion of that growth.

The company provides advice and solutions to accommodation providers who are looking to increase their income through pricing and sales efficiency gains. PJ’s boasts a dedicated department of online sales experts, and can take total control of a hotel’s sales arm if a business so chooses.

As another Mexico-based revenue management company, PJ’s also predominantly works with Spanish-speaking clientele.

Revenue management company features:

  • Able to control hotel reputation across platforms.
  • Strategic alliances with airlines and press.
  • Annual and monthly projection of revenue.
  • Able to increase production through activation and maintenance of sales channels.

Visit website

Hotel Marketing Strategist

Hotel Marketing Strategist was founded by Opal Gibson, an 18-year veteran of the hospitality industry who brings senior executive experience in the fields of sales, marketing and revenue management.

Based in the US, the team at Hotel Marketing Strategist specialise in rapidly increasing the revenues of small, boutique and independent hotels. Their approach is based on their “Must Do 7” – a laundry list of simple strategies shown to have an instant impact on critical KPIs like RevPAR and occupancy rate.

Revenue management consulting strengths:

  • Experts in creating a revenue advantage for your hotel through strategies like dynamic pricing.
  • Specialists in assisting brand new hotels to establish sound revenue strategies.
  • Benchmarking against the market and key competitors.
  • Maximise hotel revenues during high demand periods.

Visit website

Revenue Resolutions (Pty) Ltd

Revenue Resolutions are a South Africa-based revenue management consultancy that brings a focus on the hospitality industry. They describe themselves as experts in combining the art of revenue management with the science of data.

The company’s six-step revenue optimisation process encompasses a needs and gap analysis, strategic planning, tactical initiatives, technology implementation, training and development, and ongoing research and planning.

Revenue management consulting key areas:

  • An impressive list of South African and global clients.
  • Their six-step “360 Degree Optimisation” program is proven to drive hotel revenue.
  • Ongoing revenue management services crafted for small (<20 room) properties.
  • A range of additional service offerings, from marketing plans to trade show representation.

Visit website

Koncept Konnect

This Australian consultancy has been offering revenue management guidance (and a whole lot more) to global accommodation providers since 2013. Their quest is to put their clients in the best possible position to attract year-round bookings.

Along with a range of revenue management and online distribution solutions, Koncept Konnect also offers assistance with sales representation, business development, digital comms and social media management.

Revenue management consulting firm focus:

  • Optimisation of booking systems.
  • Competitor and rate plan reviews and resets.
  • Direct booking assistance, including campaigns, loyalty programs and management of best price guarantees.
  • Channel manager setup and third party connection audits.

Visit website

Benefits of using revenue management services

Why invest in hotel revenue management services? Here are a few of the most compelling reasons.

Increase revenue

The first and most obvious reason to invest in hotel revenue management consulting is because it is one of the most direct means through which you can increase revenue. By getting expert help to set optimal rates and capitalise on opportunities, you make more money.

Gain a clearer picture of your business

When you work in your business day in and day out, you begin to develop blind spots. The value of a fresh set of expert eyes can therefore be invaluable. That new perspective can reveal issues and opportunities that you may never have considered (but that can feel obvious as soon as they are pointed out).

Improve occupancy and ADR

Beyond renovating and expanding your property, your hotel has one major revenue limitation: the number of rooms. Revenue management companies specialise in maximising the ability of these rooms to earn you money, by employing strategies that improve occupancy and increase your average daily rate (ADR).

Enhance the guest experience

A hotel revenue management company can help you make more money while also enhancing the guest experience. Strategies include offering add-ons and extras during the booking process, or upselling a guest to a more premium room. Delivering a higher-end service also helps a hotel in terms of reputation management.

Create a more successful, sustainable business

When you get revenue management right as a hotel business, the rest tends to follow. More revenue brings more opportunity to invest in your business, which spurs further growth. If you’re considering investing in some form of outside help, hotel revenue management services are often the most compelling option.

How to choose a hotel revenue management consulting company

What should you look for when choosing a hotel revenue management service provider? A few of the most important considerations include:

  • Industry experience: Revenue management in the hotel industry is a very different proposition to revenue management in other industries, such as retail or finance. As such you should choose a consultancy that specialises in hotel revenue management.
  • A proven track record: A successful hotel revenue management company will be more than happy to offer examples of their past successes. Ask for case studies, and where possible speak to clients about their experiences working with the company.
  • Honesty and transparency: The best consultancies will be totally transparent about the whats, whys and hows of your revenue management strategy. They will give you regular updates on performance and will talk to you in a language you understand.
  • A focus on tech: Successfully managing revenue on an ongoing basis demands purpose-built tech, so the best consultancies will put a focus on the implementation of technology that will drive sustainable revenue management.

By Dean Elphick

Dean is the Senior Content Marketing Specialist of Little Hotelier, the all-in-one software solution purpose-built to make the lives of small accommodation providers easier. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at Little Hotelier. Through content, Dean aims to provide education, inspiration, assistance, and, ultimately, value for small accommodation businesses looking to improve the way they run their operations (and live their life).