Tourism is developing exponentially; demand is growing and guests are increasingly demanding. This is a special challenge for hotel managers and managers of other accommodation units because it is on them to meet the ever-increasing demands without increasing the price levels. Therefore, it is most important that the revenue management is successful in order to offer guests what they want, and the hotel would still generate profits. The aim of this paper is to present revenue management through the theoretical and practical part, and to identify the challenges faced by managers.In the theoretical part, deeper explains the importance of using financial and non-financial instruments, as well as internal measures as indicators to evaluate revenue management in the hotel in the hotel industry. The emphasis is placed on the Revenue Management concept that seeks to anticipate consumer behavior and accordingly optimize the cost and availability of accommodation capacities in order to increase the profitability and revenue of the company. It is also showed that the sale of accommodation capacities and the determination of the price is often the decisive factor in the selection of the hotel. In the end, there is a practical section describing revenue management at the Milenij Hotel. In this section, it is presented that Milenij Hotel is using revenue management in its business strategy based on all the research data, but there is also room for improvement. The hotel should more often use the overbooking and last-minute deals methods to protect itself from unnecessary financial losses and thus generate higher revenue.