TJM Revenue Manager: Parameters to Consider

As a freelancer in Revenue Management, you are likely wondering how to determine the Average Daily Rate (AMR) that accurately reflects your value.

In this article, we will show you the key parameters to consider when calculating your TJM as a revenue manager.

Parameters to take into account to calculate the TJM of a Revenue Manager

The Revenue Manager Experience

Experience plays a crucial role in setting the TJM. As with all other jobs, the more years of successful experience you have accumulated, the greater the value you can bring. Customers are often ready to pay a higher rate in order to benefit from the expertise of a seasoned professional.

The consultant's level

The level of competence and responsibility also affects the TJM. A junior consultant cannot charge as much as a seasoned expert due to the difference in skills and experience gained over the course of their various experiences.

The specificities of the mission

Some missions may require specific skills or advanced expertise. This may justify a higher TMR.

Complex, high-stakes projects often have a higher value for customers.

The certifications

Specific certifications in the field of Revenue Management can also influence the TJM. This is for example the case of the “Certificate of Revenue Management” (CRME) or Certified Hospitality Revenue Manager (CHRM).

Customers are often willing to pay more for a certified professional, recognizing the added value that accreditation can provide.

The geographical location

Geographical location plays a major role in pricing.

Regions with a higher cost of living or higher demand may justify higher GMs. For example, in Île-de-France, rates may be higher than those in Lille or Marseille due to differences in living costs and demand.

TJM Revenue Managers: Average

The remuneration of a Revenue Manager varies considerably depending on the various factors mentioned above. Here we will present you with a detailed perspective on average daily rates (ADRs) in this specialized field:

Revenue Manager salary: The range is significantly extended, ranging between 550 and 1200 euros per day.

This significant variation is strongly influenced by the seniority of the professional, while also being dependent on the specific requirements of the current mission.

Average TJM of Freelance revenue manager : Taking into account the whole spectrum, the average daily rates stabilize around 800 euros. This figure reflects the earnings trend in this field of activity.

Distribution by seniority: The segmentation of prices according to seniority offers a clear overview of the increase in remuneration.

The daily rates for a Junior Revenue Manager are around 600 euros, while a Confirmed Professional can claim 800 euros per day. For more experienced profiles, a Senior Revenue Manager can reach 1000 euros, while an expert can benefit from rates of up to 1200 euros per day.

TJM Revenue Manager Junior Intermediate Senior Analyst Paris 650 euros 850 euros 1000 euros 1000 euros Lille 550 euros 870 euros 950 euros 950 euros Lyon 600 euros Lyon 600 euros Lyon 600 euros Lyon 600 euros 750 euros 870 euros 950 euros

Annual gross salary equivalent:

By converting these daily rates into gross wages, we get more or less the following salaries.

The annual income for a Junior Revenue Manager can start around 50,000 euros, while the most experienced can hope to surpass 100,000 euros.

This breadth reflects the perceived value of experience and expertise in the field of Revenue Management.

What exactly is a Revenue Manager?

A Revenue Manager is a professional who specializes in the strategic management of revenue within a company, primarily in the hotel, tourism, and other service-related industries.

This role aims to maximize revenue by adjusting the pricing and availability of products or services. The Revenue Manager analyzes complex data, monitors market trends, and implements pricing strategies to optimize profitability.

The missions of a Revenue Manager

The missions of a revenue manager can be divided into several different activities.

• Data analysis: Gather, analyze, and interpret data to inform decisions, looking at things like occupancy rates, rates, market trends, and local events.
• Price management: Design dynamic pricing strategies in response to demand, seasons, days of the week, and special events.
• Inventory management: Monitor and optimize the availability of products or services to avoid overbookings or underbookings.
• Customer segmentation: Identify customer segments and adjust rates accordingly, for example by offering special rates for groups or loyal customers.
• Competitive intelligence: Carefully monitor the actions of competitors to adjust pricing and availability strategies accordingly.
• Internal collaboration: Work closely with other departments to ensure a harmonious approach
• Implementation of revenue management systems: Establish and manage systems and software to facilitate data analysis.
• Demand forecasts: Develop forecasts based on historical data and current trends.
• Optimization of distribution channels: Maximize profitability by effectively distributing bookings across multiple channels.
• Reporting and analysis: Prepare periodic reports on performance, market trends and offer recommendations for revenue improvement.

Training and skills to become a project director

To become an expert in Revenue Management, solid training is required. A Bac + 5 level education, such as a business or engineering school, is often required.

However, significant experience can compensate for a slightly lower level of education, opening the door to professionals with a Bac + 3.