Hotel Industry Needs to Reconsider Pay Structures for Revenue Management Executives

The Hotel Industry Needs to Reconsider Pay Structures for Revenue Management Executives, According to AETHOS Report

September 18, 2017 – A recent compensation review of more than 150 revenue management executives throughout the United States has resulted in AETHOS Consulting Group’s 2017 Lodging Revenue Management Compensation Report.

AETHOS Managing Director David Mansbach, author of the study, said, “as an industry we must recognize that the static state of hotel revenue management is rapidly moving to a dynamic environment that includes game-changing technology and enhanced revenue management initiatives.”

Mansbach adds that dynamic environments require extraordinary talent. “I noticed two very concerning trends during my recent recruitment assignments,” he elaborates. “First, while there are many people in the hotel revenue management role, only a few are qualified to operate in this emerging environment. Second, the industry ‘at large’ is underpaying its revenue management executives and needs to reconsider pay structures to train, attract and retain preferred talent.”

Regarding salary ranges and compensation assessments for this role, notable findings from the AETHOS Lodging Revenue Management Compensation Report include:

  • The median total cash compensation (base salary and annual cash bonus) for revenue management executives overseeing company initiatives is US$267,010;
  • There is a 36% base pay differential between multi-unit and property level revenue managers;
  • The median base pay for property level revenue managers is US$104,000.

For more details about the findings of the AETHOS Lodging Revenue Management Compensation Report, and to obtain a copy of the report, contact David Mansbach at [email protected].