The Role of a Revenue Manager Has Expanded - And So Have the Questions We Should Be Asking

I recently had a really interesting conversation with the lovely Patryk Luszcz, Regional Director UK at Profitroom, as part of the Revenue Rocks Podcast about the questions being asked of revenue managers - and how those have evolved over time.

There was a time, not that long ago, when revenue management was largely defined by one thing: watching competitors closely and making sure you weren’t a few pounds out of line.

In many ways, as Patryk said,  revenue managers became the “rate parity police” scanning channels, spotting discrepancies, and stepping in to fix them.

It did of course matter - and it still does… to a point. Guests expect consistency, and visible price differences can erode trust.

But if revenue management today is still focused on being £2 cheaper on an OTA, something has gone off track - because there are far bigger opportunities to focus on.

The clearest sign of change? The questions being asked

Revenue management hasn’t just evolved because of better tools or more data. It has evolved because the questions have changed. And those questions tell you everything about how the role has shifted - from reactive and tactical to proactive and strategic.

Until recently - and something we still see - the questions asked of revenue managers have been mainly reactive: 

• Are we in parity with our competitors?

• Why are we cheaper on this OTA?

• Can we fix it quickly?

• What is the competitor doing this weekend?

Today, successful hotels are asking questions that are not only much broader but far more commercially meaningful:

• Where is our demand coming from, and how is it changing?

• What is the most profitable mix of business?

• When should we push rate, and when should we protect occupancy?

• How confident are we in our forecast?

• Are sales, marketing, and revenue aligned around the same goals?

That shift in questioning reflects a much bigger shift in responsibility and in impact on the businsss

From reacting to the market to understanding your business

When you focus on competitor pricing, you are playing a game you cannot win. There will always be someone willing to go lower, move faster, or take a more aggressive position.

The more powerful question is no longer “What are they doing?” - it’s “What should we be doing, based on our demand, our strategy, and our goals?”

That shift creates clarity about your business - and with clarity comes confidence.

Better questions start with demand

Once you start with your own demand - looking at booking patterns, pace, segments, and forward visibility - the picture becomes much clearer. Pricing decisions become more intentional, less reactive, and far more aligned to the reality of your business.

You begin to understand when to push rate, when to hold your nerve, and when there is a genuine need to drive volume.

Not all revenue is equal

Another shift in questioning is around value. Not just “How do we fill rooms?” but “How do we fill them profitably?” The channels you rely on, the segments you prioritise, and the type of guest you attract all shape your bottom line.

You can be perfectly aligned on price and still underperform commercially if the mix is wrong.

Forecasting changes the conversation

Forecasting has moved from a manual task to a central driver of commercial strategy.

With better data and more sophisticated tools, hotels can see demand earlier and with greater accuracy — allowing them to act with intent rather than hesitation - and this changes the question again - from “What just happened?” to “What’s coming, and how do we respond?”

At this point, revenue management is no longer reacting to the business - it is actively guiding it.

From pricing role to commercial architect

This is the biggest shift of all. Revenue management is no longer just a pricing function. It has become a central commercial role - connecting teams, shaping decisions, and influencing long-term performance.

In many ways, the modern revenue manager looks more like a commercial architect, designing how the business performs, not just responding to it.

Keep parity in its place

So yes, rate parity still matters. It shouldn’t be ignored -but it also shouldn’t dominate the conversation.

The real opportunity lies beyond focussing on small price differences, in asking better questions, understanding your demand, and making decisions that drive long-term performance.

The evolution of revenue management isn’t just about better tools or faster data - it’s about better thinking.

The hotels that move ahead are the ones that stop asking, “What is everyone else doing?”

and start asking, “What’s the right decision for our business?” That’s where the real shift lies