I already have a revenue management system, so don't need a revenue manager. Why you are wrong...

A revenue management system (RMS) is a powerful tool, but it doesn’t replace a revenue manager because it lacks the strategic thinking, creativity, and market intuition that a human brings to the table.

Apart from the features that a typical revenue management system delivers, revenue managers are still required to oversee and manage a hotels distribution, ensure all revenue related systems are working together in harmony, as well as deliver annual budgets and business plans.

In larger properties they may also be responsible for leading the reservations team, and in smaller properties they may also be heading up the commercial side of the business.

Here’s a few more reasons why having a revenue manager is still essential:

1. Strategic Oversight – An RMS can analyze data and suggest pricing, but a revenue manager aligns these decisions with broader business goals, market trends, and competitive positioning.

2. Contextual Decision-Making – Systems rely on historical data and algorithms, but they may not fully account for external factors like sudden market shifts, economic downturns, or special events.

3. Human Judgment & Experience – Revenue managers bring years of experience, industry knowledge, and intuition that allow them to make nuanced decisions that an RMS might not be able to.

4. Collaboration Across Departments – Revenue management isn’t just about pricing; it involves working with sales, marketing, and operations to maximize profitability. A system can’t replace human collaboration.

5. Exception Handling – Unforeseen situations, such as global crises, regulatory changes, or one-time disruptions, require quick thinking and adaptability that an RMS cannot provide.

6. Continuous Optimization – While an RMS provides recommendations, a revenue manager fine-tunes its parameters, validates its outputs, and ensures it remains aligned with the company’s evolving strategy.

In short, an RMS is a tool that enhances efficiency and decision-making, but it works best when guided by a skilled revenue manager who can interpret data, apply critical thinking, and drive revenue strategy effectively.