One of the most common questions we were asked in 2025 was: “Can you help me find a revenue manager?”
Why has this become an increasingly important part of every successful vacation rental manager’s armoury? We have a few thoughts expanded on below, and we have also created a FREE directory service for all revenue managers specialising in accommodation. This is under a dedicated Revenue Manager‘s website and directory.
Market Saturation and Hyper-Competition
Five to ten years ago, listing a property on Airbnb, Booking.com or VRBO (ex-HomeAway) was often sufficient to secure regular bookings. That opportunity has changed. Global supply has expanded rapidly, particularly since the pandemic, leaving most established destinations significantly oversupplied. Guests now face close to limitless choice. A property priced just a few $/EU/£s too high on a low-demand midweek date may see no bookings at all. Conversely, underpricing b during peak demand can result in substantial revenue loss.
Pricing is no longer a seasonal exercise. Effective revenue management now requires dynamic, data-driven pricing, adjusted daily, and, in some cases, intraday pricing based on real-time demand signals, competitor behaviour, booking velocity, and market compression.
The Margin Squeeze
Operating costs in the short-term rental sector have risen sharply. Inflation has affected utilities, labour, cleaning, and maintenance, and many destinations have introduced tighter regulation, higher taxation, and new licensing requirements. Occupancy alone no longer protects profitability. Margins are under sustained pressure, making revenue optimisation, not just calendar filling, critical.
Modern revenue management focuses on maximising revenue per available night rather than discount-led occupancy. The strategy lies in identifying precisely when rates can and should be pushed higher to offset rising fixed and variable costs, while avoiding unnecessary price erosion during softer periods.
Professionalisation and Investor Expectations
The sector is undergoing rapid professionalisation, marked by consolidation and increasing institutional capital. The traditional “host” model is giving way to professional operators managing large portfolios on behalf of investors. Asset owners and investors demand transparency, accountability, and evidence that each property is performing at its revenue ceiling, not merely in line with market averages.
Revenue managers now operate as commercial strategists. Their role extends beyond pricing to performance analysis, forecasting, and investor reporting, replacing intuition with data-backed decisions.
The Data Explosion and the AI Arms Race
The volume of pricing data has exceeded human capacity to make fast, reliable decisions. Accurate pricing requires analysis of competitor behaviour, occupancy, event calendars, historical booking windows, lead-time trends, and real-time search demand. Revenue management platforms such as PriceLabs, Wheelhouse, and Beyond process millions of data points daily, enabling decision-making at a scale and speed no individual can replicate with manual data analysis.
AI driven pricing systems are moving beyond reactive optimisation toward a predictive capability. Identifying emerging demand patterns and pricing anomalies ahead of the market is becoming the norm. Managers who do not use these tools are operating at a structural disadvantage.
Increasingly Complex Distribution
Professional operators no longer rely on a single marketplace. Inventory is typically distributed across Vrbo, Booking.com, Expedia, Google Vacation Rentals, and direct booking channels. Each channel carries distinct commission structures, customer profiles, and ranking algorithms. A price that performs well on one platform may be unprofitable on another. Revenue managers implement channel pricing strategies, maintaining rate parity where appropriate, while selectively adjusting prices to protect margin and maximise net revenue across the distribution mix.
The Human Machine Advantage
While pricing technology has become indispensable, it has not removed the need for human oversight. Algorithms optimise for revenue signals, not brand integrity, guest loyalty, or long-term positioning. They do not know the property amenities or layouts in a human way, or the actual benefits of the location. Reviews can provide guidelines, but we know they’re often gamed too. The target guest demographic also plays a part. A pricing tool may recommend a dramatic rate increase during a demand spike, and a skilled revenue manager also understands when such a move risks reputational damage or alienates repeat guests.
As the short-term rental market becomes more volatile and competitive, the most successful operators are those who combine advanced AI-driven pricing tools with experienced human revenue strategists, using technology to set the baseline and human judgment to create sustainable commercial advantage.
At Yes.Consulting™, we have created a FREE growing directory of revenue managers for 2026 and toolsets from suppliers, allowing managers and agencies to choose from experienced, knowledgeable individuals, teams, and companies.
Please feel free to join the growing community if you are a revenue manager or a tech tool supplier.
