Do Hotel Managers Really Need Revenue Management Skills?

A recent LinkedIn post went viral with more than 5,000 views and dozens of heated comments. The topic? Whether revenue management skills should be required to hold a hotel manager position.

It’s a fair question — especially as the hospitality industry continues to evolve and automated revenue management systems (RMS) like Pricepoint gain traction. For the sake of discussion, let’s look at both sides.

Argument 1: Revenue Management Skills Are Essential

Yes, revenue management skills should be mandatory. Why? Because they are directly tied to profitability.

A hotel manager with a strong grasp of revenue management can:

• Increase Average Daily Rate (ADR),
• Boost Revenue Per Available Room (RevPAR), and
• Improve Gross Operating Profit (GOPPAR).

Hospitality was one of the first industries to embrace revenue management, and many argue it remains the foundation of effective hotel operations. Without a solid understanding of pricing strategy, market positioning, and demand forecasting, hotel managers risk leaving revenue on the table.

As one side of the debate puts it: revenue management is the beginning and end of all management policies.

Argument 2: Hotel Managers Don’t Need RM Skills

On the flip side, others argue that while useful, revenue management isn’t the core responsibility of a hotel manager.

Here’s why:

• Daily workload reality – In many markets, revenue management decisions happen multiple times per day. A GM already stretched thin across operations, staffing, and guest relations cannot execute RM effectively on top of everything else.
• The real priority – Hotel managers are, first and foremost, people managers. Keeping staff motivated and delivering exceptional guest experiences should be their primary focus.
• The rise of automation – With AI-driven revenue management software like Pricepoint, the day-to-day work of RM can be automated. Managers can simply review dashboards or “snapshot” views to understand the big picture without micromanaging rate changes.

This side of the debate argues that in 2025, hotel managers don’t need to be RM experts — they just need enough understanding to trust the tools and the data.

Where We Stand Today

The truth lies somewhere in between. A good hotel manager should understand the principles of revenue management — not necessarily to execute them, but to make informed decisions and lead effectively.

At the same time, automation has made it unnecessary for GMs to handle RM manually. Systems like Pricepoint analyze market data, competitor pricing, and demand patterns in real time to adjust rates instantly.

This allows hotel managers to focus on what they do best: building teams, creating unforgettable guest experiences, and driving the overall vision of the property.

Final Takeaway

As hotels reopen and navigate the post-pandemic market, this is not the time for trial-and-error pricing experiments. What’s needed is automated, data-driven decision-making backed by proven results.

Revenue management knowledge will always be valuable — but in 2025, hotel managers don’t need to master spreadsheets. They need to master people, strategy, and technology.

👉 Want to see how automation simplifies RM? Try Pricepoint free and experience hands-off, AI-powered pricing.

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