Meeting revenue management challenges: Knowledge, skills and abilities

Abstract

Hospitality industry increasingly recognizes importance of integrating revenue management into their operations and significance of their staff to do so. Yet revenue managers face major challenges from both internal and external sources. Hence revenue staff dealing with several sophisticated problems should possess various knowledge, skills and abilities (KSAs) to enable them effectively overcome these obstacles. However which specific capabilities are required to what extent are not clear. Therefore this study aims to match the challenges that are faced by hotel revenue managers with KSAs required in managing inventory and prices. A two step qualitative method is adopted; first 14 revenue managers were interviewed and secondly a focus group with eight participants was conducted in order to identify challenges and competencies required in improving revenue management effectiveness. Thus this study offers a typology of challenges faced by revenue managers and it also identifies KSAs that are required by revenue management staff.