The Evolving Role of Revenue Management in the Post-Pandemic Hotel Industry: A Case Study of Japanese Resort Hotels

Abstract

Purpose: This article examines the pandemic's impact on RM practices in Japanese resort hotels, a key tourism sector. Design/methodology/approach: Through semi-structured interviews with revenue managers and general managers, this study investigates key changes in the business environment, the evolution of RM strategies, and the shifting responsibilities of revenue managers. Findings: The pandemic accelerated several key trends. Reduced reservation lead time necessitated a shift in the perspective of revenue management from historical forecasting to real-time data analysis. Hotels increasingly prioritized direct bookings to enhance profitability and reduce reliance on OTAs. RM strategies are now closely aligned with operational realities, such as staffing shortages, to ensure service quality. The role of the revenue manager has expanded significantly, requiring a broader skill set that includes data analytics, cost management, cross-functional collaboration, and strategic decision-making. Research limitations/implications: Our findings underscore the increasing importance of data-driven insights in driving revenue optimisation. These findings suggest that Japanese resort hotels must embrace data-driven decision-making, flexible pricing, and technology to adapt to the dynamic post-pandemic environment. While widespread AI adoption is still developing, this strategic evolution establishes a critical foundation for its future integration, which can further optimize profitability and resource management in the dynamic post-pandemic environment. Practical implications: The insights gained from semi-structured interviews with three companies provide valuable guidance for many hotels while also highlighting commonalities and gaps with existing literature. Originality/value: By presenting the changes in revenue management during the pandemic and its future outlook, this article has outlined the future direction of revenue management.