Per the name, the historical role of revenue managers has been to maximize revenue - specifically rooms revenue or revenue per available room. RevPAR growth is achieved by increasing occupancy and/or average daily rates.

Basic economic theory says that prices influence changes in demand (rooms occupied). Depending on the date and market conditions, an increase in ADR typically tends to mute or reduce changes in demand. Conversely, a lowering of ADR will most likely stimulate demand and increase occupancy. Historically, revenue managers have adjusted ADR to find the best mix of occupancy and ADR that will maximize RevPAR.

In recent years, the role of the revenue manager has expanded. Revenue managers are now charged not to just maximize revenue, but profits as well.