Is in-house Revenue Management better or Outsourced Revenue Management better?

Introduction

Hotel Industry is always struggling to maximize revenue from their property. While adopting revenue management solutions is an obvious answer to this but whether to hire a full-time revenue manager or outsource revenue management is a major question. At this point, we suggest businesses evaluate all the key factors that will impact the decision. This should typically include taking into account the expertise, experience, budget, resource, and data analytics and reports to name a few. 

 

The decision may seem to be difficult, but to make things simple, we have listed down a few points to compare and consider for making the right decision about having an in-house Revenue Management or Outsourced Revenue Management for your business.

Comparison between in-house Revenue Management & Outsourced Revenue Management

Titles	In-house Revenue Manager	Outsourced Revenue Management
Cost Incurred	When it comes to hiring a full-time revenue manager, there is a monthly fixed cost incurred in terms of their non-negotiable salary. Fully time revenue managers are expensive and not affordable for many, especially for small hotel businesses this may not be in their budget.	Outsourced Revenue management services can be a lot more reasonable and within the budget, especially for small-scale hotels that lack monetary resources. For the kind of services and expertise they offer, Outsourced Revenue Management is affordable.
Experience	Full-time Revenue managers may have experience in the industry but the relative exposure may be very limited in comparison with the outsourced revenue management company.	Outsourced Revenue Management service providers always hire the best in their team. They have better exposure to the wide hospitality industry and also hold good experience in dealing with different scales of revenue management and the hotel business.
Expertise	As mentioned earlier, a full-time revenue manager may have less exposure, limited to the traditional hotel business for which they work.	On the other hand, in outsourced revenue management, the revenue manager will be a trained professional having the capabilities, expertise, and exposure to deal with hotel business specific to your scale. The expertise and inputs offered will be customized and specific to your business requirement.
Marketing Approach	A full-time revenue manager may not be updated and have the knowledge of the latest strategies and may be inclined to a more traditional approach than the latest modern approach to the strategy.	Outsourced revenue managers are often well-trained and updated about the latest happenings and trends. They have a more outward approach with modern market practice for revenue management.
Data Analytics & Reports	The Data Analytics may not be very accurate as the revenue manager here have less resources, to gain accurate results.	Data and reporting are much more accurate as outsourced revenue managers have better industry insight.
Efficiency	Due to lack of resources and limited infrastructure one cannot expect efficiency.	The revenue management process and strategy are more streamlined and efficient with the process in place.

 

In-house revenue management and outsourced revenue management have their pros and cons. With these points in hand, businesses will be in a better position to understand what works for their hotel business. Depending on what suits your business, and taking into consideration all the factors that may impact your business, hiring a full-time manager or outsourcing to a professional must be decided.